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

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is a part of" class="read-more button" href="https://exam.pscnotes.com/mcq/cost-function-in-which-cost-does-not-change-with-any-change-in-level-of-activity-is-a-part-of/#more-59548">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

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

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

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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
button" href="https://exam.pscnotes.com/mcq/idle-time-variance-is/#more-59489">Detailed SolutionIdle time variance is . . . . . . . .

24. An example of shrinkage costs is

incoming freight
storage costs
insurance
clerical errors

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class="read-more button" href="https://exam.pscnotes.com/mcq/an-example-of-shrinkage-costs-is/#more-59488">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

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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

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. forms part of cost of production." class="read-more button" href="https://exam.pscnotes.com/mcq/forms-part-of-cost-of-production/#more-59461">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

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124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 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
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

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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

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as an allocation base is classified as" class="read-more button" href="https://exam.pscnotes.com/mcq/cost-pool-category-which-have-similar-cause-and-effect-relationship-with-each-cost-driver-uses-as-an-allocation-base-is-classified-as/#more-59434">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

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

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