Costing

[amp_mcq option1=”Short-term creditors” option2=”Long-term creditors” option3=”Shareholders” option4=”Both A and B” correct=”option3″]

Detailed SolutionPrice earning ratio is useful to whom?

[amp_mcq option1=”Process costing” option2=”Contract costing” option3=”Uniform costing” option4=”Unit costing” correct=”option1″]

Detailed SolutionThe cost accounting method to compute basic cost of a product or service is

[amp_mcq option1=”Rs. 200 and Rs. 200″ option2=”Rs. 100 and Rs. 200″ option3=”Rs. 260 and Rs. 100″ option4=”Rs. 160 and Rs. 100″ correct=”option2″]

Detailed SolutionIf the total cost is Rs. 260 and the total variable cost is Rs. 60, what will be total fixed cost if output is (i) 100 units and (ii) 200 units?

[amp_mcq option1=”Profit and loss account” option2=”Execution work” option3=”Partly to both of them” option4=”Certified work” correct=”option1″]

Detailed SolutionLoss on incomplete contract is transferred to-

[amp_mcq option1=”fixed cost driver” option2=”cost driver and cost” option3=”cost driver and object” option4=”mixed cost driver” correct=”option2″]

Detailed SolutionIn adjustment issues of costing, database must contain reliable measure of

[amp_mcq option1=”1, 3, 5 and 7″ option2=”2, 4, 6 and 8″ option3=”2, 4, 5 and 7″ option4=”1, 3, 6 and 8″ correct=”option1″]

Detailed SolutionProfits can be increased by 1. decreasing the selling price per unit. 2. increasing the selling price per unit. 3. decreasing the volume of sales. 4. increasing the volume of sales. 5. decreasing the fixed or variable expenses. 6. increasing the fixed or variable expenses. 7. giving more weightage for products having higher P/V ratio. 8. giving less weightage for products having higher P/V ratio. Select the correct answer

[amp_mcq option1=”a-4, b-3, c-2, d-1″ option2=”a-2, b-3, c-4, d-1″ option3=”a-3, b-2, c-4, d-1″ option4=”a-3, b-4, c-1, d-2″ correct=”option3″]

Detailed SolutionMatch the following. List-I List-II a. Short-term 1. . . . . . . . . is a financing activity. b. Current liabilities 2. Cash flow statement is useful for . . . . . . . . financial planning. c. Amount of creditors 3. Increase in . . . . . . . . is a source of cash. d. Payment of dividends 4. Increase in the . . . . . . . . results in increase in cash.

[amp_mcq option1=”actual, applied” option2=”applied, actual” option3=”indirect, direct” option4=”None of these” correct=”option1″]

Detailed SolutionExpenses incurred during production other than direct materials and direct labour are called . . . . . . . . factory expenses; those charged to production on estimated basis are called . . . . . . . .

[amp_mcq option1=”direct pool” option2=”cost pool” option3=”indirect pool” option4=”item pool” correct=”option3″]

Detailed SolutionA group of individual indirect cost item is defined as

[amp_mcq option1=”Cash inflow from interest income” option2=”Cash inflow from dividend income” option3=”Cash outflow to acquire fixed assets” option4=”All of the above” correct=”option3″]

Detailed SolutionWhich of the following is an investing activity?