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

11. Difference between flexible budget amount and corresponding actual result is called

corresponding variance

resultant variance

flexible budget variance

static budget variance

Detailed SolutionDifference between flexible budget amount and corresponding actual result is called

12. When actual loss is less than the estimated loss, the difference between the two is considered to be . . . . . . . .

abnormal gain

abnormal loss

normal loss

income

Detailed SolutionWhen actual loss is less than the estimated loss, the difference between the two is considered to be . . . . . . . .

13. If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is

$36,000

$46,000

$56,000

$14,000

Detailed SolutionIf actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is

14. . . . . . . . . is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

Rolling budget

Continuous budget

Annual budget

Both A and B

Detailed Solution. . . . . . . . is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

15. Return on Investment (RoI) is computed as

Net profit ratio * Capital turnover ratio

Operating net profit ratio * Shareholders fund

Net profit/Sales

Cost of sales/Capital employed

Detailed SolutionReturn on Investment (RoI) is computed as

16. Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

allocation

allotment

primary distribution

secondary distribution

Detailed SolutionAllotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

17. The technique of standard costing may not be applicable in case of:

Large concerns

Small concerns

All concerns

Both B and C

Detailed SolutionThe technique of standard costing may not be applicable in case of:

18. Office and administrative expenses can be charged on the basis of _______.

material cost

labour cost

prime cost

factory cost

Detailed SolutionOffice and administrative expenses can be charged on the basis of _______.

19. The system which gives a continuous information regarding quantum and value of inventory is known as:

Re-order point valuation method

Periodic inventory method

Perpetual inventory method

A, B, C analysis technique

Detailed SolutionThe system which gives a continuous information regarding quantum and value of inventory is known as:

20. If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

1800 units

2300 units

10300 units

1500 units

Detailed SolutionIf beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

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