[amp_mcq option1=”nominal a/c” option2=”a real a/c” option3=”personal a/c” option4=”either nominal or real a/c” correct=”option1″]
Costing
22. Input is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?
[amp_mcq option1=”7600 units” option2=”10,000 units” option3=”10, 400 units” option4=”12,000 units” correct=”option1″]
23. Which of the following is an abnormal cause of Idle time:
[amp_mcq option1=”Time taken by workers to travel the distance between the main gate of factory and place of their work” option2=”Time lost between the finish of one job and starting of next job” option3=”Time spent to meet their personal needs like taking lunch, tea etc” option4=”Machine break downs” correct=”option4″]
Detailed SolutionWhich of the following is an abnormal cause of Idle time:
24. If number of units are 3000 and per unit price is $500, then flexible budget variable will be
[amp_mcq option1=”$1,500,000″ option2=”$2,500,000″ option3=”$3,500,000″ option4=”$4,500,000″ correct=”option1″]
25. Budgeted direct labour hours are multiplied to direct labour cost rate to calculate
[amp_mcq option1=”expected total direct labour cost” option2=”budgeted total direct labour cost” option3=”budgeted total indirect labour cost” option4=”expected labour hours” correct=”option1″]
Detailed SolutionBudgeted direct labour hours are multiplied to direct labour cost rate to calculate
26. . . . . . . . . expenses are excluded from cost.
[amp_mcq option1=”Normal” option2=”Abnormal” option3=”Both A and B” option4=”None of these” correct=”option1″]
Detailed Solution. . . . . . . . expenses are excluded from cost.
27. Wages paid to a labour who was engaged in production activities can be termed as _______.
[amp_mcq option1=”direct cost” option2=”indirect cost” option3=”sunk cost” option4=”imputed cost” correct=”option1″]
28. When the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .
[amp_mcq option1=”abnormal loss” option2=”normal loss” option3=”loss” option4=”None of these” correct=”option1″]
29. Cost plus contract is useful for-
[amp_mcq option1=”Contractor” option2=”Contractee” option3=”Both A and B” option4=”None of these” correct=”option3″]
30. Assertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.
[amp_mcq option1=”Both (A) and (R) are correct, and (R) correctly explains (A)” option2=”Both (A) and (R) are correct, but (R) does not explain (A)” option3=”Both (A)and (R) are incorrect” option4=”(A) is correct, but (R) is incorrect” correct=”option3″]