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

11. What is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?

2 times

3 times

4 times

5 times

Detailed SolutionWhat is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?

12. Situation in which cost object has any job, customer or product is known as

cost application base

sale application base

price application base

direct application base

Detailed SolutionSituation in which cost object has any job, customer or product is known as

13. Fixed cost per unit increases when _______.

variable cost per unit increases

variable cost per unit decreases

production volume increases

production volume decreases

Detailed SolutionFixed cost per unit increases when _______.

14. Under ABC method of material control, the material are classified according to __________.

its value

its usage

its nature

its availability

Detailed SolutionUnder ABC method of material control, the material are classified according to __________.

15. Works cost is a total of . . . . . . . .

indirect material, indirect labour

direct material, direct labour, direct or chargeable expenses and works expenses

direct material, direct labour

indirect material, indirect labour, indirect expenses

Detailed SolutionWorks cost is a total of . . . . . . . .

16. Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as

pricing method

manufacturing method

conference method

inference method

Detailed SolutionMethod, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as

17. Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as

step down allocation method

stand-alone revenue allocation method

incremental revenue allocation method

revenue mix allocation method

Detailed SolutionMethod, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as

18. Total Labour cost variance =

Standard cost of labour - actual cost of labour

Standard rate (standard time for actual output - actual time worked)

Standard rate (standard time for actual output - actual time paid for)

Actual time taken (standard rate - actual rate)

Detailed SolutionTotal Labour cost variance =

19. If machine hours are 8000 and factory overhead absorption rate per machine hour is Rs. 8, then the absorbed factory overheads will be

Rs. 1,000

Rs. 8,000

Rs. 64,000

Rs. 7,992

Detailed SolutionIf machine hours are 8000 and factory overhead absorption rate per machine hour is Rs. 8, then the absorbed factory overheads will be

20. Focus on budget cost of all activities necessary to sell and produce market offerings is known as

cost based budgeting

activity based budgeting

production based budgeting

raw material budgeting

Detailed SolutionFocus on budget cost of all activities necessary to sell and produce market offerings is known as

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