Costing

[amp_mcq option1=”accounting period costing system” option2=”process costing system” option3=”job costing system” option4=”none of above” correct=”option2″]

Detailed SolutionA unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

[amp_mcq option1=”primary product” option2=”First incremental product” option3=”Second incremental product” option4=”Third incremental product” correct=”option4″]

Detailed SolutionThird ranked product in incremental revenue-allocation method is known as

[amp_mcq option1=”material requisition” option2=”stores ledger” option3=”material issue analysis sheet” option4=”None of these” correct=”option1″]

Detailed SolutionA bill of material serves the purpose of . . . . . . . .

[amp_mcq option1=”general ledger” option2=”non-achievable” option3=”non measureable” option4=”economically plausible” correct=”option4″]

Detailed SolutionRelationship between independent variable and dependent variable must be

[amp_mcq option1=”rolling budget” option2=”pin budget” option3=”specific budget” option4=”past budget” correct=”option1″]

Detailed SolutionContinuous budget is also known as

[amp_mcq option1=”Inventoriable costs” option2=”finished costs” option3=”factory overhead costs” option4=”manufacturing overhead costs” correct=”option1″]

Detailed SolutionFor companies in service sector, cost which is not considerable is

[amp_mcq option1=”2 times” option2=”3 times” option3=”4 times” option4=”5 times” correct=”option3″]

Detailed SolutionWhen opening stock is Rs. 50,000, closing stock is Rs. 60,000 and the cost of goods sold is Rs. 2,20,000, the stock turnover ratio is:

[amp_mcq option1=”Gross margin percentage” option2=”total production cost of each product” option3=”allocated joint costs” option4=”cost of split off point” correct=”option2″]

Detailed SolutionFirst step in constant gross margin percentage NRV method is to allocate joint to compute

[amp_mcq option1=”plant value” option2=”plant size” option3=”working days” option4=”output produced” correct=”option1″]

Detailed SolutionDepreciation of plant can be apportioned on the basis of ________.

[amp_mcq option1=”A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range” option2=”A static budget is for an entire production, but a flexible budget is applicable only to a single department” option3=”Flexible budget allow management latitude in meeting goals, where as a static budget is based on a fixed standard” option4=”A flexible budget considers only variable costs, but a static budget considers all costs” correct=”option1″]

Detailed SolutionWhat is the basic difference between a static budget and a flexible budget?