Costing

21. Process costing is also known as . . . . . . . . costing.

continuous
batch
multiple
job

Detailed SolutionProcess costing is also known as . . . . . . . . costing.

22. Process of assigning indirect costs to any specific cost object is known as

economic cost
cost tracing
cost allocation
non-economic costs

Detailed SolutionProcess of assigning indirect costs to any specific cost object is known as

23. Mathematical relationships exist between operating and financing activities that affect master budget are called

math plan model
financial planning models
operating plan models
master plan models

Detailed SolutionMathematical relationships exist between operating and financing activities that affect master budget are called

24. Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be . . . . . . . .

abnormal loss
normal loss
abnormal gain
normal gain

Detailed SolutionWhere actual loss in a process is less than the anticipated loss, the difference between the two is considered to be . . . . . . . .

25. Such expenses which are included (even though they are not incurred) for taking managerial decisions are called . . . . . . . .

notional expenses
actual expenses
imputed
None of these

Detailed SolutionSuch expenses which are included (even though they are not incurred) for taking managerial decisions are called . . . . . . . .

26. Which of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3? I. Cash flow from borrowing activities. II. Cash flow from operating activities. III. Cash flow from financing activities. IV. Cash flow from investing activities. V. Cash flow from miscellaneous activities.

I, II and III
I, III and V
II, III and IV
I, IV and V

Detailed SolutionWhich of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3? I. Cash flow from borrowing activities. II. Cash flow from operating activities. III. Cash flow from financing activities. IV. Cash flow from investing activities. V. Cash flow from miscellaneous activities.

27. When the debt turnover ratio is 4, what is the average collection period?

5 months
4 months
3 months
2 months

Detailed SolutionWhen the debt turnover ratio is 4, what is the average collection period?

28. Gross margin is subtracted from sales value of all production to yield

labour cost incurred on product
production cost incurred on product
marketing cost incurred on product
all of above

Detailed SolutionGross margin is subtracted from sales value of all production to yield

29. Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm. Reason (R): Cash is an important constituent of the working capital based on recorded facts only.

Both (A) and (R) are correct, and (R) is the correct explanation of (A)
(A) is correct, but (R) is incorrect
(A) is incorrect, but (R) is correct
Both (A) and (R) are incorrect

Detailed SolutionAssertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm. Reason (R): Cash is an important constituent of the working capital based on recorded facts only.

30. Most appropriate basis for the apportionment of power is ________.

no of labour
no of output
no of machines
horse power of machines

Detailed SolutionMost appropriate basis for the apportionment of power is ________.

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