Costing

21. Which of the following is correct at break-even point?

Contribution = Fixed assets
Sales revenue = Total cost - Variable cost
Profit = Fixed cost + Variable cost
Sales revenue = Variable cost

Detailed SolutionWhich of the following is correct at break-even point?

22. In activity based costing method implementation, indirect costs are allocated by using the

no cost pool
One or two cost pools
sustained tracing
support tracing

Detailed SolutionIn activity based costing method implementation, indirect costs are allocated by using the

23. Comprehensive machine hour rate includes ________.

machine operators wages
managing directors salary
income tax
office rent

Detailed SolutionComprehensive machine hour rate includes ________.

24. Cost accounting is based on-

Single accounting system
Indian book-keeping system
Double accounting system
None of the above

Detailed SolutionCost accounting is based on-

25. Which method of costing is used in hospitals?

Operational cost determination
Unit cost determination
Sub work cost determination
Group cost determination

Detailed SolutionWhich method of costing is used in hospitals?

26. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by _______.

the same firm
the several firms
the same industry
the several industries

Detailed SolutionMultiple costing is a technique of using two or more costing methods for ascertainment of cost by _______.

27. In accounting system, a document which consists of all assigned cost for specific job is classified as

job cost record
job cost sheet
source document
both a and b

Detailed SolutionIn accounting system, a document which consists of all assigned cost for specific job is classified as

28. Arrange the following categories of cash inflows and cash outflows in a correct order. 1. Cash flows from investing activities. 2. Cash flows from financing activities. 3. Cash flows from operating activities.

3, 1, 2
1, 3, 2
3, 2, 1
2, 1, 3

Detailed SolutionArrange the following categories of cash inflows and cash outflows in a correct order. 1. Cash flows from investing activities. 2. Cash flows from financing activities. 3. Cash flows from operating activities.

29. Third step in process costing system is to

summarize flow of output
compute output in units
summarize total costs
compute cost for each equivalent unit

Detailed SolutionThird step in process costing system is to

30. Under which method of wage payment, wages are influenced by idle time?

Straight piece rate
Differential piece rate
Premium and bonus plan
Time wage rate

Detailed SolutionUnder which method of wage payment, wages are influenced by idle time?

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