Costing

[amp_mcq option1=”cash outlays” option2=”direct cost” option3=”indirect cost” option4=”None of the above” correct=”option1″]

Detailed SolutionAn opportunity cost does not involve . . . . . . . .

[amp_mcq option1=”Includes only fixed costs, while a variable budget includes only variable costs” option2=”Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales” option3=”Cannot be changed after the period begins, while a variable budget can be changed after the period begins” option4=”Is a plan for a single level of sales (or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)” correct=”option4″]

Detailed SolutionThe primary difference between a fixed budget and a variable (flexible) budget is that a fixed budget:

[amp_mcq option1=”flexible budget” option2=”master budget” option3=”cash budget” option4=”sales budget” correct=”option1″]

Detailed SolutionThe difference between fixed and variable cost has a special significance in the preparation of:

[amp_mcq option1=”costing profit and loss a/c” option2=”financial profit and loss a/c” option3=”manufacturing” option4=”trading” correct=”option1″]

Detailed SolutionAbnormal process loss can be transferred to ________.

[amp_mcq option1=”Only 1″ option2=”Only 2″ option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option3″]

Detailed SolutionWhich of the following statements is correct in regards to Kaijen costing? 1. It is a system of cost reduction. 2. It is a system of continuous improvement without negative effects on the quality, staff and security. Select the correct answer:

[amp_mcq option1=”time taken” option2=”quantity of work” option3=”time saved” option4=”quality of work” correct=”option2″]

Detailed SolutionHalsey premium plan is based on

[amp_mcq option1=”$48,000″ option2=”-$2000″ option3=”$2,000″ option4=”-$48000″ correct=”option3″]

Detailed SolutionIf an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be

[amp_mcq option1=”fixed terms” option2=”indexed terms” option3=”variable terms” option4=”residual terms” correct=”option4″]

Detailed SolutionDeviations between estimated regression line and vertical deviations are classified as

[amp_mcq option1=”cost center” option2=”revenue center” option3=”profit center” option4=”investment center” correct=”option3″]

Detailed SolutionA manager, who is responsible for both cost and revenues belongs to department of

[amp_mcq option1=”14000 units” option2=”14500 units” option3=”15000 units” option4=”15500 units” correct=”option3″]

Detailed SolutionIf purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be