Costing

21. Process a/c is ________.

nominal a/c
a real a/c
personal a/c
either nominal or real a/c

Detailed SolutionProcess a/c is ________.

22. Input is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?

7600 units
10,000 units
10, 400 units
12,000 units

Detailed SolutionInput is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?

23. Which of the following is an abnormal cause of Idle time:

Time taken by workers to travel the distance between the main gate of factory and place of their work
Time lost between the finish of one job and starting of next job
Time spent to meet their personal needs like taking lunch, tea etc
Machine break downs

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

$1,500,000
$2,500,000
$3,500,000
$4,500,000

Detailed SolutionIf number of units are 3000 and per unit price is $500, then flexible budget variable will be

25. Budgeted direct labour hours are multiplied to direct labour cost rate to calculate

expected total direct labour cost
budgeted total direct labour cost
budgeted total indirect labour cost
expected labour hours

Detailed SolutionBudgeted direct labour hours are multiplied to direct labour cost rate to calculate

26. . . . . . . . . expenses are excluded from cost.

Normal
Abnormal
Both A and B
None of these

Detailed Solution. . . . . . . . expenses are excluded from cost.

27. Wages paid to a labour who was engaged in production activities can be termed as _______.

direct cost
indirect cost
sunk cost
imputed cost

Detailed SolutionWages paid to a labour who was engaged in production activities can be termed as _______.

28. When the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .

abnormal loss
normal loss
loss
None of these

Detailed SolutionWhen the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .

29. Cost plus contract is useful for-

Contractor
Contractee
Both A and B
None of these

Detailed SolutionCost plus contract is useful for-

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.

Both (A) and (R) are correct, and (R) correctly explains (A)
Both (A) and (R) are correct, but (R) does not explain (A)
Both (A)and (R) are incorrect
(A) is correct, but (R) is incorrect

Detailed SolutionAssertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.

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