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

11. Administration expenses are mostly . . . . . . . .

semi-variable

variable

fixed

None of these

Detailed SolutionAdministration expenses are mostly . . . . . . . .

12. AFC is computed by:

$$rac{{{ ext{TFC}}}}{{ ext{Q}}}$$

$$rac{{ ext{Q}}}{{{ ext{FC}}}}$$

$$rac{{{ ext{TFC}}}}{{{ ext{FC}}}}$$

$$rac{{{ ext{FC}}}}{{{ ext{TC}}}}$$

Detailed SolutionAFC is computed by:

13. Match the following. List-I List-II a. Variable costing 1. Absorption costing b. Valuation of stock is higher 2. Fixed cost is excluded from inventory valuation c. Marginal and differential costs are same 3. Marginal costing d. Marginal costing 4. No change in fixed cost

a-3, b-4, c-1, d-2

a-3, b-1, c-4, d-2

a-4, b-3, c-1, d-2

a-4, b-3, c-2, d-1

Detailed SolutionMatch the following. List-I List-II a. Variable costing 1. Absorption costing b. Valuation of stock is higher 2. Fixed cost is excluded from inventory valuation c. Marginal and differential costs are same 3. Marginal costing d. Marginal costing 4. No change in fixed cost

14. Costing refers to the techniques and processes of ________.

ascertainment of costs

allocation of costs

apportion of costs

distribution of costs

Detailed SolutionCosting refers to the techniques and processes of ________.

15. Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

0% and 100%

0% and 120%

0% and 83%

None of these

Detailed SolutionUnder Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

16. Element/s of Cost of a product are:

Material only

Labour only

Expenses only

Material, Labour and expenses

Detailed SolutionElement/s of Cost of a product are:

17. Basis of apportionment of stores service expenses is . . . . . . . .

value of materials consumed

units of material consumed

products produced

None of these

Detailed SolutionBasis of apportionment of stores service expenses is . . . . . . . .

18. What is Economic Order Quantity?

Cost of an order

Cost of stock

Reorder level

Optimum order size

Detailed SolutionWhat is Economic Order Quantity?

19. Weak relationship between cost and cost driver is indicated on a regression line, which is

curved

slightly sloped

completely sloped

dotted

Detailed SolutionWeak relationship between cost and cost driver is indicated on a regression line, which is

20. If required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be

$6.20

$7.20

$4.20

$5.20

Detailed SolutionIf required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be

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