Costing

21. Where the work is undertaken to Customer’s special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

job
batch
operation
output

Detailed SolutionWhere the work is undertaken to Customer’s special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

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

Detailed SolutionAccording to which of the following methods of valuation, issuances are linked to current economic prices?

23. Standard costs is . . . . . . . .

predetermined cost
budgeted cost
actual cost
None of these

Detailed SolutionStandard costs is . . . . . . . .

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

Detailed SolutionIf budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be

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

Detailed SolutionWhich of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?

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

Detailed SolutionIf an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be

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

Detailed SolutionAn actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate

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

Detailed SolutionThe purchase of machinery by issuing long-term notes payable should be reported as a

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

Detailed SolutionAn example of rework is

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

Detailed SolutionTaylor’s differential piece work plan provides that

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