Costing

[amp_mcq option1=”step price functions” option2=”step object functions” option3=”step constant functions” option4=”step cost functions” correct=”option3″]

Detailed SolutionCost function, in which cost does not change with any change in level of activity is a part of

[amp_mcq option1=”$${\text{Earned profit}} \times \frac{{50}}{{100}}$$” option2=”$${\text{Earned profit}} \times \frac{3}{2} \times \frac{{{\text{Cash received}}}}{{{\text{Contract value}}}}$$” option3=”$${\text{Earned profit}} \times \frac{2}{3} \times \frac{{{\text{Cash received}}}}{{{\text{Contract value}}}}$$” option4=”$${\text{Earned profit}} \times \frac{2}{3} \times \frac{{{\text{Cash received}}}}{{{\text{Certified value}}}}$$” correct=”option1″]

Detailed SolutionIf 50% of the contract is completed, then the following amount of profit is normally credited

[amp_mcq option1=”Idle time × actual labour” option2=”Idle time × standard rate” option3=”Idle time × budgeted labour rate” option4=”Idle time × historical cost” correct=”option3″]

Detailed SolutionIdle time variance is . . . . . . . .

[amp_mcq option1=”incoming freight” option2=”storage costs” option3=”insurance” option4=”clerical errors” correct=”option3″]

Detailed SolutionAn example of shrinkage costs is

[amp_mcq option1=”a-4, b-1, c-2, d-3″ option2=”a-4, b-3, c-2, d-1″ option3=”a-4, b-3, c-1, d-2″ option4=”a-3, b-1, c-4, d-2″ correct=”option1″]

Detailed SolutionMatch the following. List-I List-II a. Excess of actual sales over the break-even sales volume 1. Contribution b. Sum of fixed cost and profit 2. Cost volume profit analysis c. Break-even chart 3. Unaffected by change in output d. Break-even point 4. Margin of safety

[amp_mcq option1=”Abnormal waste” option2=”Normal waste” option3=”Both A and B” option4=”None of these” correct=”option2″]

Detailed Solution. . . . . . . . forms part of cost of production.

[amp_mcq option1=”Direct material” option2=”Direct wages” option3=”Prime cost” option4=”Factory cost” correct=”option4″]

Detailed SolutionAdministration and management overheads are realized as a percentage

[amp_mcq option1=”Kolkata” option2=”Mumbai” option3=”Delhi” option4=”Allahabad” correct=”option3″]

Detailed SolutionThe head office of the institute of cost and works accountants of India is located at

[amp_mcq option1=”heterogeneous price pool” option2=”homogenous cost pool” option3=”heterogeneous cost pool” option4=”homogenous price pool” correct=”option2″]

Detailed SolutionCost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

[amp_mcq option1=”outsiders” option2=”self” option3=”employees” option4=”None of the above” correct=”option1″]

Detailed SolutionOut of pocket costs involve payment to . . . . . . . . .