Costing Archives

191. Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be

$4,450

$6,450

$21,500

$14,300

Detailed SolutionDirect service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be

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

Detailed SolutionIf relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be

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

Detailed SolutionIn labour oriented manufacturing industry which method of overhead absorption is suitable?

194. An appropriate choice to invest in manpower or other resources is made through

Human resource accounting

Creative accounting

Financial accounting

Cost accounting

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 Ã· Sales b. P/V ratio 2. Contribution = Selling price – . . . . . . . . c. Profit 3. . . . . . . . . = Sales (1 – P/V ratio) d. Variable costs 4. Margin of safety = . . . . . . . . Ã· 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

Detailed SolutionMatch the following. List-I List-II a. Marginal cost 1. . . . . . . . . = Contribution Ã· Sales b. P/V ratio 2. Contribution = Selling price – . . . . . . . . c. Profit 3. . . . . . . . . = Sales (1 – P/V ratio) d. Variable costs 4. Margin of safety = . . . . . . . . Ã· P/V ratio

196. In an accounting system, document which supports journal entries is classified as

cost document

priced document

source document

direct document

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

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

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

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

Detailed SolutionWhich of the following is not true of the cash budget?

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