Costing

21. Average method of pricing the material issues is useful when ___________.

material prices are rising
material prices are falling
material prices are constant
material prices are fluctuating

Detailed SolutionAverage method of pricing the material issues is useful when ___________.

22. Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as

budget
batching
complexity
process

Detailed SolutionType of plan of a company, which quantities expectations of cash flows, income and financial position is known as

23. Bin card is maintained by the . . . . . . . .

Cost accountant
Clerk
Storekeeper
Branch accountant

Detailed SolutionBin card is maintained by the . . . . . . . .

24. If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be

$803.571 per labour hour
$805 per labour hour
$905 per labour hour
$802 per labour hour

Detailed SolutionIf budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be

25. Generally types of stores are classified into ________.

two types
three types
four types
five types

Detailed SolutionGenerally types of stores are classified into ________.

26. If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be

69.72%
79.72%
99.75%
89.72%

Detailed SolutionIf budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be

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

Standard costing is a system where predetermined costs are used for control of entire organisation
Standard may be expressed in quantitative and monetary measures
Only adverse variances are investigated intensively
Standard is determined for each element of cost

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

28. The debt-equity ratio of a company is 2 : 1. In this relation, match the following. List-I List-II a. Issue of equity shares 1. No change on the ratio b. Cash received from debtors 2. Reduce the ratio c. Redemption of debentures 3. No change on the ratio d. Purchased goods on credit 4. Reduce the ratio

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

Detailed SolutionThe debt-equity ratio of a company is 2 : 1. In this relation, match the following. List-I List-II a. Issue of equity shares 1. No change on the ratio b. Cash received from debtors 2. Reduce the ratio c. Redemption of debentures 3. No change on the ratio d. Purchased goods on credit 4. Reduce the ratio

29. Which one of following is main advantage of quantitative method?

non expression
non constant
objective
non objective

Detailed SolutionWhich one of following is main advantage of quantitative method?

30. Which of the following is not an activity listed in the statement of cash flows?

Financing activities
Operating activities
Funding activities
Investing activities

Detailed SolutionWhich of the following is not an activity listed in the statement of cash flows?

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