$4,450
$6,450
$21,500
$14,300
Answer is Right!
Answer is Wrong!
Costing
192. If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be
$9,650
$2,350
$3,750
$2,750
Answer is Right!
Answer is Wrong!
193. In labour oriented manufacturing industry which method of overhead absorption is suitable?
Direct material cost method
Prime cost method
Labour hour method
Machine hour method
Answer is Right!
Answer is Wrong!
194. An appropriate choice to invest in manpower or other resources is made through
Human resource accounting
Creative accounting
Financial accounting
Cost accounting
Answer is Right!
Answer is Wrong!
Detailed SolutionAn appropriate choice to invest in manpower or other resources is made through
195. Match the following. List-I List-II a. Marginal cost 1. . . . . . . . . = Contribution ÷ Sales b. P/V ratio 2. Contribution = Selling price – . . . . . . . . c. Profit 3. . . . . . . . . = Sales (1 – P/V ratio) d. Variable costs 4. Margin of safety = . . . . . . . . ÷ P/V ratio
a-4, b-3, c-2, d-1
a-3, b-1, c-4, d-2
a-2, b-1, c-4, d-3
a-2, b-3, c-4, d-1
Answer is Right!
Answer is Wrong!
196. In an accounting system, document which supports journal entries is classified as
cost document
priced document
source document
direct document
Answer is Right!
Answer is Wrong!
Detailed SolutionIn an accounting system, document which supports journal entries is classified as
197. Direct cost incurred can be identified with ________.
each department
each unit of output
each month
each executive
Answer is Right!
Answer is Wrong!
Detailed SolutionDirect cost incurred can be identified with ________.
198. Volume variance is divided into . . . . . . . .
Capacity variance, calendar variance and expenditure variance
Capacity variance, calendar variance and efficiency variance
Capacity variance, expenditure variance and efficiency variance
Calendar variance, expenditure variance and efficiency variance
Answer is Right!
Answer is Wrong!
Detailed SolutionVolume variance is divided into . . . . . . . .
199. The type of loss that should not affect cost of inventories is ________.
normal loss
abnormal loss
seasonal loss
standard loss
Answer is Right!
Answer is Wrong!
Detailed SolutionThe type of loss that should not affect cost of inventories is ________.
200. Which of the following is not true of the cash budget?
The shortage or excess of cash would appear in a particular period
All inflows would arise before outflows for those periods
Only revenue nature cash flows are shown
Proceeds from issue of share capital is shown as an inflow
Answer is Right!
Answer is Wrong!
Detailed SolutionWhich of the following is not true of the cash budget?