Costing

[amp_mcq option1=”job” option2=”batch” option3=”operation” option4=”output” correct=”option1″]

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

[amp_mcq option1=”LIFO method” option2=”FIFO method” option3=”HIFO method” option4=”Weighted average value method” correct=”option4″]

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

[amp_mcq option1=”predetermined cost” option2=”budgeted cost” option3=”actual cost” option4=”None of these” correct=”option1″]

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

[amp_mcq option1=”$4,730,000″ option2=”$3,730,000″ option3=”$2,730,000″ option4=”$1,730,000″ correct=”option1″]

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

[amp_mcq option1=”General price level method” option2=”Specific price level method” option3=”Current cost accounting method” option4=”Generally accepted accounting principles” correct=”option2″]

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

[amp_mcq option1=”$5,000″ option2=”$4,500″ option3=”$5,500″ option4=”$6,000″ correct=”option1″]

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

[amp_mcq option1=”profit variance” option2=”investment variance” option3=”cost variance” option4=”selling price variance” correct=”option4″]

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

[amp_mcq option1=”non-cash investing and financing activity” option2=”cash outflow in the operating activity” option3=”cash outflow in the investing activity” option4=”cash outflow in the financing activity” correct=”option1″]

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

[amp_mcq option1=”short lengths from wood work” option2=”defective aluminium cans recycled by manufacturer” option3=”detection of defective pieces before shipment” option4=”none of above” correct=”option1″]

Detailed SolutionAn example of rework is

[amp_mcq option1=”All labourers should be assigned different amount of work” option2=”All labourers should be put in different time-period” option3=”Those who produce above standard should receive higher wages than those producing below standard” option4=”Payment should be the same on a fixed standard” correct=”option3″]

Detailed SolutionTaylor’s differential piece work plan provides that