Costing
job
batch
operation
output
Answer is Right!
Answer is Wrong!
22. According to which of the following methods of valuation, issuances are linked to current economic prices?
LIFO method
FIFO method
HIFO method
Weighted average value method
Answer is Right!
Answer is Wrong!
23. Standard costs is . . . . . . . .
predetermined cost
budgeted cost
actual cost
None of these
Answer is Right!
Answer is Wrong!
24. If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be
$4,730,000
$3,730,000
$2,730,000
$1,730,000
Answer is Right!
Answer is Wrong!
25. Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?
General price level method
Specific price level method
Current cost accounting method
Generally accepted accounting principles
Answer is Right!
Answer is Wrong!
26. If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be
$5,000
$4,500
$5,500
$6,000
Answer is Right!
Answer is Wrong!
27. An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate
profit variance
investment variance
cost variance
selling price variance
Answer is Right!
Answer is Wrong!
28. The purchase of machinery by issuing long-term notes payable should be reported as a
non-cash investing and financing activity
cash outflow in the operating activity
cash outflow in the investing activity
cash outflow in the financing activity
Answer is Right!
Answer is Wrong!
29. An example of rework is
short lengths from wood work
defective aluminium cans recycled by manufacturer
detection of defective pieces before shipment
none of above
Answer is Right!
Answer is Wrong!
30. Taylor’s differential piece work plan provides that
All labourers should be assigned different amount of work
All labourers should be put in different time-period
Those who produce above standard should receive higher wages than those producing below standard
Payment should be the same on a fixed standard
Answer is Right!
Answer is Wrong!
Detailed SolutionTaylor’s differential piece work plan provides that