Costing

21. A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

accounting period costing system
process costing system
job costing system
none of above

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

22. Third ranked product in incremental revenue-allocation method is known as

primary product
First incremental product
Second incremental product
Third incremental product

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

23. A bill of material serves the purpose of . . . . . . . .

material requisition
stores ledger
material issue analysis sheet
None of these

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

24. Relationship between independent variable and dependent variable must be

general ledger
non-achievable
non measureable
economically plausible

Detailed SolutionRelationship between independent variable and dependent variable must be

25. Continuous budget is also known as

rolling budget
pin budget
specific budget
past budget

Detailed SolutionContinuous budget is also known as

26. For companies in service sector, cost which is not considerable is

Inventoriable costs
finished costs
factory overhead costs
manufacturing overhead costs

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

27. When 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:

2 times
3 times
4 times
5 times

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:

28. First step in constant gross margin percentage NRV method is to allocate joint to compute

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

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

29. Depreciation of plant can be apportioned on the basis of ________.

plant value
plant size
working days
output produced

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

30. What is the basic difference between a static budget and a flexible budget?

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
A static budget is for an entire production, but a flexible budget is applicable only to a single department
Flexible budget allow management latitude in meeting goals, where as a static budget is based on a fixed standard
A flexible budget considers only variable costs, but a static budget considers all costs

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

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