Costing

[amp_mcq option1=”Master budget” option2=”Sales budget” option3=”Performance budget” option4=”Cash budget” correct=”option1″]

Detailed Solution. . . . . . . . is the consolidated summary of the various functional budgets.

[amp_mcq option1=”Salary” option2=”Tax” option3=”Telephone expenses” option4=”Office expenses” correct=”option3″]

Detailed SolutionWhich of the following is an example of semi-variable cost?

[amp_mcq option1=”Factory cost” option2=”Goodwill written off” option3=”Labour cost” option4=”Selling cost” correct=”option2″]

Detailed SolutionWhich one of the following is not considered for preparation of cost sheet?

[amp_mcq option1=”batch size” option2=”complexity” option3=”process steps” option4=”All of these” correct=”option1″]

Detailed SolutionIn an activity based costing implementation, product’s diverse demand is based on

[amp_mcq option1=”cost budget” option2=”material list” option3=”revenue budget” option4=”list of investors” correct=”option3″]

Detailed Solutionstarting point in operating budget is

[amp_mcq option1=”estimate cost function” option2=”estimate price function” option3=”estimate supply function” option4=”estimate demand function” correct=”option1″]

Detailed SolutionFifth step in quantitative analysis of estimating cost function is to

[amp_mcq option1=”$$\frac{{{\text{Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$” option2=”$$\frac{{{\text{Fixed Cost}}}}{{{\text{Contribution}}}}$$” option3=”$$\frac{{{\text{Break Even Sales}}}}{{{\text{Sales}}}}$$” option4=”$$\frac{{{\text{Profit}}}}{{{\text{Sales}}}}$$” correct=”option3″]

Detailed SolutionThe margin of safety is calculated by using

[amp_mcq option1=”labour idle time variance” option2=”labour calender variance” option3=”labour rate variance” option4=”labour efficiency variance” correct=”option2″]

Detailed SolutionPortion of labour costvariance which is due to the difference between predetermined working days and actual working days is

[amp_mcq option1=”Falling” option2=”Rising” option3=”Constant” option4=”In all of the above conditions” correct=”option1″]

Detailed SolutionThe use of LIFO method is suitable when prices are:

[amp_mcq option1=”choose independent variable” option2=”choose cost estimation method” option3=”choose price estimation method” option4=”choose dependent variable” correct=”option2″]

Detailed SolutionSecond step for estimation of cost function by using quantitative analysis is to