Costing

21. Cost function, in which cost does not change with any change in level of activity is a part of

step price functions
step object functions
step constant functions
step cost functions

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

22. If 50% of the contract is completed, then the following amount of profit is normally credited

$${ ext{Earned profit}} imes rac{{50}}{{100}}$$
$${ ext{Earned profit}} imes rac{3}{2} imes rac{{{ ext{Cash received}}}}{{{ ext{Contract value}}}}$$
$${ ext{Earned profit}} imes rac{2}{3} imes rac{{{ ext{Cash received}}}}{{{ ext{Contract value}}}}$$
$${ ext{Earned profit}} imes rac{2}{3} imes rac{{{ ext{Cash received}}}}{{{ ext{Certified value}}}}$$

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

23. Idle time variance is . . . . . . . .

Idle time × actual labour
Idle time × standard rate
Idle time × budgeted labour rate
Idle time × historical cost

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

24. An example of shrinkage costs is

incoming freight
storage costs
insurance
clerical errors

Detailed SolutionAn example of shrinkage costs is

25. Match 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

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

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

26. . . . . . . . . forms part of cost of production.

Abnormal waste
Normal waste
Both A and B
None of these

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

27. Administration and management overheads are realized as a percentage

Direct material
Direct wages
Prime cost
Factory cost

Detailed SolutionAdministration and management overheads are realized as a percentage

28. The head office of the institute of cost and works accountants of India is located at

Kolkata
Mumbai
Delhi
Allahabad

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

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

heterogeneous price pool
homogenous cost pool
heterogeneous cost pool
homogenous price pool

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

30. Out of pocket costs involve payment to . . . . . . . . .

outsiders
self
employees
None of the above

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

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23Test 24