Costing Archives - Page 2 of 116 - MCQ and Quiz for Exams

11. Responsibility Centre can be categorised into:

Cost Centres only

Profit Centres only

Investment Centres only

Cost Centres, Profit Centres and Investment Centres

Detailed SolutionResponsibility Centre can be categorised into:

12. Cost that has elements of variable and fixed costs at same time is

variable cost

mixed cost

semi variable cost

Both B and C

Detailed SolutionCost that has elements of variable and fixed costs at same time is

13. If difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be

$16,000

$200

$400

$20,000

Detailed SolutionIf difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be

14. The formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:

Total ordering cost

Total carrying cost

Opportunity cost

Re-order point

Detailed SolutionThe formula $$\frac{{\text{Q}}}{2}$$ is used to compute the:

15. Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

annual irrelevant ordering costs

annual relevant carrying costs

annual relevant ordering costs

annual irrelevant carrying costs

Detailed SolutionNumber of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

16. Cost accounting differs from financial accounting in respect of ________.

reporting of cost

ascertainment of cost

control of cost

recording of cost

Detailed SolutionCost accounting differs from financial accounting in respect of ________.

17. In assumptions testing, violation of constant variance is called

heteroscedasticity

heterogeneous

homogenous

homoscedasticity

Detailed SolutionIn assumptions testing, violation of constant variance is called

18. Sale of defectives is reduced from ________.

prime cost

works cost

cost of production

cost of sales

Detailed SolutionSale of defectives is reduced from ________.

19. Net realizable value is added into separate costs to calculate

split off costs

final cost of direct labour

final sales

final costs

Detailed SolutionNet realizable value is added into separate costs to calculate

20. The loss which arise in manufacturing activity on account of inherent nature of the product is ________.

normal loss

abnormal loss

net loss

gross loss

Detailed SolutionThe loss which arise in manufacturing activity on account of inherent nature of the product is ________.

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