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

11. Directors remuneration and expenses form part of ________.

production overhead

administrative overhead

selling overhead

distribution overhead

Detailed SolutionDirectors remuneration and expenses form part of ________.

12. Lower level of production leads to

higher setup cost

lower repair cost

higher setup cost

higher repair cost

Detailed SolutionLower level of production leads to

13. In assumptions of specific analysis, normality of residuals is satisfied with use of

real price data

real cost data

multiplier data

divisional data

Detailed SolutionIn assumptions of specific analysis, normality of residuals is satisfied with use of

14. A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?

Rs 489

Rs 606

Rs 996

Rs 1300

Detailed SolutionA company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?

15. Kaizen costing is applied to a product that is

produced

under production

targeted to produce

sold to customer

Detailed SolutionKaizen costing is applied to a product that is

16. Variable cost per unit ________.

varies when output varies

remains constant

increase when output increases

decreases when output decreases

Detailed SolutionVariable cost per unit ________.

17. ABC analysis is ________.

At best Control

Always better Control

Average better Control

All best control

Detailed SolutionABC analysis is ________.

18. Opportunity cost of capital invested in inventory is included in:

Ordering cost

Carrying cost

Stock-out cost

Overheads

Detailed SolutionOpportunity cost of capital invested in inventory is included in:

19. In activity based costing method implementation, an output unit level costs are classified as

indirect costs

direct cost

labour cost

raw material cost

Detailed SolutionIn activity based costing method implementation, an output unit level costs are classified as

20. If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be

$87,500

$97,500

$67,500

$57,500

Detailed SolutionIf actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be

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