Costing Archives

21. Price earning ratio is useful to whom?

Short-term creditors

Long-term creditors

Shareholders

Both A and B

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22. The cost accounting method to compute basic cost of a product or service is

Process costing

Contract costing

Uniform costing

Unit costing

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288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube

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23. If the total cost is Rs. 260 and the total variable cost is Rs. 60, what will be total fixed cost if output is (i) 100 units and (ii) 200 units?

Rs. 200 and Rs. 200

Rs. 100 and Rs. 200

Rs. 260 and Rs. 100

Rs. 160 and Rs. 100

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Detailed SolutionIf the total cost is Rs. 260 and the total variable

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cost is Rs. 60, what will be total fixed cost if output is (i) 100 units and (ii) 200 units?

24. Loss on incomplete contract is transferred to-

Profit and loss account

Execution work

Partly to both of them

Certified work

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25. In adjustment issues of costing, database must contain reliable measure of

fixed cost driver

cost driver and cost

cost driver and object

mixed cost driver

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26. Profits can be increased by 1. decreasing the selling price per unit. 2. increasing the selling price per unit. 3. decreasing the volume of sales. 4. increasing the volume of sales. 5. decreasing the fixed or variable expenses. 6. increasing the fixed or variable expenses. 7. giving more weightage for products having higher P/V ratio. 8. giving less weightage for products having higher P/V ratio. Select the correct answer

1, 3, 5 and 7

2, 4, 6 and 8

2, 4, 5 and 7

1, 3, 6 and 8

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Detailed SolutionProfits can

be increased by 1. decreasing the selling price per unit. 2. increasing the selling price per unit. 3. decreasing the volume of sales. 4. increasing the volume of sales. 5. decreasing the fixed or variable expenses. 6. increasing the fixed or variable expenses. 7. giving more weightage for products having higher P/V ratio. 8. giving less weightage for products having higher P/V ratio. Select the correct answer

27. Match the following. List-I List-II a. Short-term 1. . . . . . . . . is a financing activity. b. Current liabilities 2. Cash flow statement is useful for . . . . . . . . financial planning. c. Amount of creditors 3. Increase in . . . . . . . . is a source of cash. d. Payment of dividends 4. Increase in the . . . . . . . . results in increase in cash.

a-4, b-3, c-2, d-1

a-2, b-3, c-4, d-1

a-3, b-2, c-4, d-1

a-3, b-4, c-1, d-2

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. is a financing activity. b. Current liabilities 2. Cash flow statement is useful for . . . . . . . . financial planning. c. Amount of creditors 3. Increase in . . . . . . . . is a source of cash. d. Payment of dividends 4. Increase in the . . . . . . . . results in increase in cash." class="read-more button" href="https://exam.pscnotes.com/mcq/match-the-following-list-i-list-ii-a-short-term-1-is-a-financing-activity-b-current-liabilities-2-cash-flow-statement-is-useful-for-financial-planning-c-amount/#more-46825">Detailed Solution

28. Expenses incurred during production other than direct materials and direct labour are called . . . . . . . . factory expenses; those charged to production on estimated basis are called . . . . . . . .

actual, applied

applied, actual

indirect, direct

None of these

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