Costing

21. Costs of goods acquired from suppliers is classified as

stock-out costs
ordering costs
carrying costs
purchasing costs

Detailed SolutionCosts of goods acquired from suppliers is classified as

22. Worker’s participation implies their right to take part in:

Annual general meeting
Decision making
Share holding
Profit sharing

Detailed SolutionWorker’s participation implies their right to take part in:

23. . . . . . . . . Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

Financial
Cost
Both A and B
None of these

Detailed Solution. . . . . . . . Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

24. The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be

Rs 9,00,000
Rs 18,00,000
Rs 5,00,000
None of the above

Detailed SolutionThe P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs 30,00,000 then Break Even Point in Rs will be

25. . . . . . . . . are costs which have been applied against revenue of particular accounting period.

Expenses
Income
Loss
None of these

Detailed Solution. . . . . . . . are costs which have been applied against revenue of particular accounting period.

26. In marginal costing, contribution is equal to

Sales - Fixed cost
Sales - Variable cost
Sales - Profit
Sales - Variable Cost + Fixed cost

Detailed SolutionIn marginal costing, contribution is equal to

27. Third step in constant gross margin percentage NRV Method to allocate joint cost is to compute

Gross margin percentage
total production cost of each product
allocated joint costs
cost of split off point

Detailed SolutionThird step in constant gross margin percentage NRV Method to allocate joint cost is to compute

28. Depreciation is . . . . . . . . expenditure.

fixed
variable
adjustable
semi-variable

Detailed SolutionDepreciation is . . . . . . . . expenditure.

29. A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?

Rs 8.25
Rs 8.80
Rs 11.00
Rs 14.67

Detailed SolutionA job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?

30. Labour turnover is ______.

productivity of labour
efficiency of the labour
change in labour force
total cost of the labour

Detailed SolutionLabour turnover is ______.

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