Costing

21. Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?

Rs 32,000
Rs 40,000
Rs 48,000
Rs 54,000

Detailed SolutionCost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?

22. Basic cost is made up of

Direct material + Direct labor + Direct expenses
Direct material + Indirect matrerial + Indirect labour
Direct labour + Indirect labour + Direct expenses
None of these

Detailed SolutionBasic cost is made up of

23. Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as

weighted average method
net present value method
Gross production method
net present value method

Detailed SolutionCosting method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as

24. In estimation of cost functions, variations in a single activity level represents the

related total costs
related fixed cost
related variable cost
related per unit cost

Detailed SolutionIn estimation of cost functions, variations in a single activity level represents the

25. In case of materials the key factor may be.

insufficient advertising
restrictions imposed by quota
low market demand
shortage of power

Detailed SolutionIn case of materials the key factor may be.

26. The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs 25,000 and Rs 35,000. If dividend paid during the current year amounted to Rs 5,000 then profit earned during the year will be:

Rs 5,000
Rs 55,000
Rs 15,000
Rs 65,000

Detailed SolutionThe summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs 25,000 and Rs 35,000. If dividend paid during the current year amounted to Rs 5,000 then profit earned during the year will be:

27. The budget that is prepared first of all is . . . . . . . .

cash budget
master budget
budget for the key factor
sales budget

Detailed SolutionThe budget that is prepared first of all is . . . . . . . .

28. At what value is the closing stock valued Or Stock is valued on

Cost price
Market value
Cost price or market price, whichever is less
Cost price or market price, whichever is higher

Detailed SolutionAt what value is the closing stock valued Or Stock is valued on

29. Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of

information accounting
cost accounting
analyzing accounts
marketing costs

Detailed SolutionCalculation of product cost, gathering information for planning and analyzing information for decisions making are features of

30. “It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

8,788 units
11,600 units
11,885 units
12,397 units

Detailed Solution“It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units. “

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