[amp_mcq option1=”Right to revoke the agency” option2=”Right to charge abnormal fee for the agency” option3=”Right to repudiate the agency” option4=”Right to recover the secret profits from the agent E. Right to enter into a contract” correct=”option1″]
Costing
22. In process costing, the abnormal loss is treated as . . . . . . . . cost and written off to profit & loss account.
[amp_mcq option1=”unit” option2=”period” option3=”future” option4=”process” correct=”option2″]
23. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
[amp_mcq option1=”Capital cost of a new collection vehicle” option2=”Depreciation of the machinery” option3=”Operatives wages” option4=”Fuel for the collection Vehicles” correct=”option1″]
24. What-if technique, which examines changes in results if original prediction would not be achieved is called
[amp_mcq option1=”change analysis” option2=”original analysis” option3=”sensitivity analysis” option4=”predicted analysis” correct=”option3″]
25. Batch costing is useful to determine ________.
[amp_mcq option1=”maximum quantity of output” option2=”minimum quantity of output” option3=”economic batch quantity” option4=”profit of batches” correct=”option3″]
Detailed SolutionBatch costing is useful to determine ________.
26. Match the items of List-I with the items of List-II and indicate the correct answer. List-I List-II a. Absolute cost advantage theory 1. The empirical evidence based on US export of labour-intensive goods challenging the factor endowment theory. b. Comparative cost advantage theory 2. A country with a direct cost advantage in the production of a product on account of greater efficiency. c. Factor endowment theory 3. A country should produce and export a commodity that primarily involves a factor of production in abundance within the country. d. Leontief paradox 4. A country should specialize in the production and export of a commodity in which it possesses the greatest relative advantage.
[amp_mcq option1=”a-2, b-4, c-3, d-1″ option2=”a-2, b-4, c-1, d-3″ option3=”a-2, b-1, c-3, d-4″ option4=”a-1, b-4, c-3, d-2″ correct=”option1″]
27. If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be
[amp_mcq option1=”$27,000″ option2=”$15,000″ option3=”$39,000″ option4=”$49,000″ correct=”option1″]
28. . . . . . . . . does not form part of production.
[amp_mcq option1=”Abnormal waste” option2=”Normal waste” option3=”Both A and B” option4=”None of these” correct=”option1″]
Detailed Solution. . . . . . . . does not form part of production.
29. Cost that is not affected by changes in the volume of production
[amp_mcq option1=”Total cost” option2=”Fixed cost” option3=”Variable cost” option4=”Opportunity cost” correct=”option2″]
Detailed SolutionCost that is not affected by changes in the volume of production
30. Total cost of producing similar products divided by number of units produced is a technique known as
[amp_mcq option1=”sale costing system” option2=”job costing system” option3=”price costing system” option4=”process costing system” correct=”option4″]