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

11. Defectives are that portion of production which can be . . . . . . . . at some extra cost of re-operation.

sold

rectified

purchased

None of these

Detailed SolutionDefectives are that portion of production which can be . . . . . . . . at some extra cost of re-operation.

12. . . . . . . . . is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.

ABC Analysis

JIT Inventory System

VED Analysis

Perpetual Inventory System

Detailed Solution. . . . . . . . is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.

13. Relationship between change in activity and change in total costs is considered as

fixed relationship

cause and effect relationship

ineffective relationship

variable relationship

Detailed SolutionRelationship between change in activity and change in total costs is considered as

14. Costs associated with the labour turnover can be categorised into:

Preventive Costs only

Replacement costs only

Both of the above

Machine costs

Detailed SolutionCosts associated with the labour turnover can be categorised into:

15. Liquidity ratios are expressed in

Pure ratio form

Percentage

Rate or time

None of the above

Detailed SolutionLiquidity ratios are expressed in

16. First step in process costing system is to

summarize flow of output

compute output in units

summarize total costs

compute cost for each equivalent unit

Detailed SolutionFirst step in process costing system is to

17. Aspects of accounting for scrap includes

physical tracking

non-inventoriable costing

inventory costing

both a and c

Detailed SolutionAspects of accounting for scrap includes

18. Material control involves ________.

consumption of material

issue of material

purchase of material

purchase, storage and issue of material

Detailed SolutionMaterial control involves ________.

19. GRN number refers to________.

goods received note number

goods returned note number

goods shortage note number

goods requisition note number

Detailed SolutionGRN number refers to________.

20. Variance, if used to alert managers before time of problem is called

varied warning

times warning

managers warning

early warning

Detailed SolutionVariance, if used to alert managers before time of problem is called

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