Costing

[amp_mcq option1=”Inventory levels are maintained” option2=”Inventory is classified into A, B and C category with A being the highest quantity, lowest value” option3=”Inventory is classified into A, B and C Category with A being the lowest quantity, highest value” option4=”Either b or c” correct=”option2″]

Detailed SolutionABC analysis is an inventory control technique in which:

[amp_mcq option1=”residual term” option2=”positive term” option3=”negative term” option4=”squared term” correct=”option1″]

Detailed SolutionVertical difference, which measures distance between estimated and actual cost for every single observation is classified as

[amp_mcq option1=”contractual agreement” option2=”knowledge of operations” option3=”measureable unit relationship” option4=”all of above” correct=”option4″]

Detailed SolutionCause and effect relationship between activity and costs is result of

[amp_mcq option1=”reduction in unit price of other good units” option2=”increase in unit price of other good units” option3=”reduction in costing profit” option4=”increase in costing profit” correct=”option3″]

Detailed SolutionNormal loss in the manufacturing process leads to _______.

[amp_mcq option1=”applied indirect cost” option2=”applied direct cost” option3=”incurred indirect cost” option4=”over allocated indirect cost” correct=”option4″]

Detailed SolutionIf an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as

[amp_mcq option1=”Sales” option2=”Production” option3=”Cash” option4=”Master” correct=”option3″]

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

[amp_mcq option1=”In standard costing, pre-determined costs control an entire organization” option2=”Standard maybe expressed in quantitative and monetary measures” option3=”Only adverse variances are investigated intensively” option4=”Standard is determined for each element of cost” correct=”option1″]

Detailed SolutionWhich of the following is not correct with reference to standard costing?

[amp_mcq option1=”economic order quantity purchasing” option2=”annual purchasing” option3=”just in time purchasing” option4=”both a and b” correct=”option3″]

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

[amp_mcq option1=”straight line” option2=”curved line” option3=”horizontal line” option4=”vertical line” correct=”option1″]

Detailed SolutionLine which uses to join observations with lower and highest values of cost driver is called

[amp_mcq option1=”the point at which break-even point sales are achieved” option2=”the excess of planned sales over the current actual sales” option3=”the extent to which sales revenue exceeds fixed costs” option4=”the difference between planned sales and break-even point sales” correct=”option4″]

Detailed SolutionThe margin of safety may be defined as