Costing

21. Which of the following is usually NOT a right enjoyed by a Principal in the contract of Agency?

Right to revoke the agency
Right to charge abnormal fee for the agency
Right to repudiate the agency
Right to recover the secret profits from the agent E. Right to enter into a contract

Detailed SolutionWhich of the following is usually NOT a right enjoyed by a Principal in the contract of Agency?

22. In process costing, the abnormal loss is treated as . . . . . . . . cost and written off to profit & loss account.

unit
period
future
process

Detailed SolutionIn process costing, the abnormal loss is treated as . . . . . . . . cost and written off to profit & loss account.

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?

Capital cost of a new collection vehicle
Depreciation of the machinery
Operatives wages
Fuel for the collection Vehicles

Detailed SolutionA Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

24. What-if technique, which examines changes in results if original prediction would not be achieved is called

change analysis
original analysis
sensitivity analysis
predicted analysis

Detailed SolutionWhat-if technique, which examines changes in results if original prediction would not be achieved is called

25. Batch costing is useful to determine ________.

maximum quantity of output
minimum quantity of output
economic batch quantity
profit of batches

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.

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

Detailed SolutionMatch 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.

27. If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be

$27,000
$15,000
$39,000
$49,000

Detailed SolutionIf flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be

28. . . . . . . . . does not form part of production.

Abnormal waste
Normal waste
Both A and B
None of these

Detailed Solution. . . . . . . . does not form part of production.

29. Cost that is not affected by changes in the volume of production

Total cost
Fixed cost
Variable cost
Opportunity cost

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

sale costing system
job costing system
price costing system
process costing system

Detailed SolutionTotal cost of producing similar products divided by number of units produced is a technique known as

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