Costing

11. Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion
Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period

Detailed SolutionWhich one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?

12. The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

Abnormal Cost
Marginal Cost
Fixed Cost
Semi Variable Cost E. Sunk Cost

Detailed SolutionThe amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

14. Which of the following statements is true about standard labour time?

Standard labour time indicates the time in hours needed for a specific process
It is standardized on the basis of past experience
In fixing standard time, due allowance should not be given to fatigue and tool setting
The production manager does not provide any input in setting the labour time standards

Detailed SolutionWhich of the following statements is true about standard labour time?

15. Efficiency Ratio =

$$rac{{{ ext{Number of actual working days in a period}}}}{{{ ext{Number of working days in the budget period}}}} imes 100$$
$$rac{{{ ext{Actual hours worked}}}}{{{ ext{Budgeted hours}}}} imes 100$$
$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Actual hours worked}}}} imes 100$$
$$rac{{{ ext{Standard hours for actual production}}}}{{{ ext{Budgeted standard hours}}}} imes 100$$

Detailed SolutionEfficiency Ratio =

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