Costing

21. ABC analysis is an inventory control technique in which:

Inventory levels are maintained
Inventory is classified into A, B and C category with A being the highest quantity, lowest value
Inventory is classified into A, B and C Category with A being the lowest quantity, highest value
Either b or c

Detailed SolutionABC analysis is an inventory control technique in which:

22. Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as

residual term
positive term
negative term
squared term

Detailed SolutionVertical

Join Our Telegram Channel
Subscribe on YouTube
difference, which measures distance between estimated and actual cost for every single observation is classified as

23. Cause and effect relationship between activity and costs is result of

contractual agreement
knowledge of operations
measureable unit relationship
all of above

Join Our Telegram Channel

xmlns="http://www.w3.org/2000/svg" viewBox="0 0 576 512"> Subscribe on YouTube
result of" class="read-more button" href="https://exam.pscnotes.com/mcq/cause-and-effect-relationship-between-activity-and-costs-is-result-of/#more-49841">Detailed SolutionCause and effect relationship between activity and costs is result of

24. Normal loss in the manufacturing process leads to _______.

reduction in unit price of other good units
increase in unit price of other good units
reduction in costing profit
increase in costing profit

Join Our Telegram Channel

class="youtube-subscribe-button"> Subscribe on YouTube
leads to _______." class="read-more button" href="https://exam.pscnotes.com/mcq/normal-loss-in-the-manufacturing-process-leads-to-_______/#more-49832">Detailed SolutionNormal loss in the manufacturing process leads to _______.

25. If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as

applied indirect cost
applied direct cost
incurred indirect cost
over allocated indirect cost

Detailed SolutionIf an allocated indirect cost is

Join Our Telegram Channel
Subscribe on YouTube
$1500 and actual incurred indirect cost is $1200, then this is classified as

26. . . . . . . . . budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

Sales
Production
Cash
Master

Detailed Solution. . . . . .

Join Our Telegram Channel
Subscribe on YouTube
. . budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

27. Which of the following is not correct with reference to standard costing?

In standard costing, pre-determined costs control an entire organization
Standard maybe expressed in quantitative and monetary measures
Only adverse variances are investigated intensively
Standard is determined for each element of cost

Subscribe on YouTube

Join Our Telegram Channel
not correct with reference to standard costing?" class="read-more button" href="https://exam.pscnotes.com/mcq/which-of-the-following-is-not-correct-with-reference-to-standard-costing/#more-49797">Detailed SolutionWhich of the following is not correct with reference to standard costing?

28. Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called

economic order quantity purchasing
annual purchasing
just in time purchasing
both a and b

Join Our Telegram Channel
Subscribe on YouTube
company is called" class="read-more button" href="https://exam.pscnotes.com/mcq/buying-of-goods-or-materials-for-production-in-a-way-that-they-are-delivered-directly-on-manufacturing-facility-of-company-is-called/#more-49763">Detailed SolutionBuying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called

29. Line which uses to join observations with lower and highest values of cost driver is called

straight line
curved line
horizontal line
vertical line

Detailed SolutionLine which

Join Our Telegram Channel
81.2-142.7 81.2z"/> Subscribe on YouTube
uses to join observations with lower and highest values of cost driver is called

30. The margin of safety may be defined as

the point at which break-even point sales are achieved
the excess of planned sales over the current actual sales
the extent to which sales revenue exceeds fixed costs
the difference between planned sales and break-even point sales

Join Our Telegram Channel
Subscribe on YouTube
defined as" class="read-more button" href="https://exam.pscnotes.com/mcq/the-margin-of-safety-may-be-defined-as/#more-49760">Detailed SolutionThe margin of safety may be defined as

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