Costing

21. Cost of contract and profit or loss thereon are determined by preparing ________.

cost sheet
profit and loss a/c
trading a/c
separate ledger a/c

Detailed SolutionCost of contract and profit or loss thereon are determined by preparing ________.

22. If the beginning balance in raw materials inventory is Rs. 5,000, the ending balance is Rs. 3,500 and material of Rs. 60,000 was purchased, what is the amount of materials transferred to work-in-processinventory during the period?

Rs. 58,500
Rs. 60,000
Rs. 61,500
Rs. 68,500

Detailed SolutionIf the beginning balance in raw materials inventory is Rs. 5,000, the ending balance is Rs. 3,500 and material of Rs. 60,000 was purchased, what is the amount of materials transferred to work-in-processinventory during the period?

23. Which of the following affects the flow of funds?

A transaction affecting both current account
A transaction affecting both non-current account
A transaction affecting current and non-current account
None of the above

Detailed SolutionWhich of the following affects the flow of funds?

24. ___________ is the value of economic resources used as a result of producing or doing the thing costed.

Cost
Inventory
Labour
overhead

Detailed Solution___________ is the value of economic resources used as a result of producing or doing the thing costed.

25. Contract a/c is _______.

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

Detailed SolutionContract a/c is _______.

26. If budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be

6000 units
4000 units
no units
8000 units

Detailed SolutionIf budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be

27. From the following two statements of Assertion (A) and Reason (R). Indicate the correct option. Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

Both (A) and (R) are correct
(A) is correct, but (R) is not correct
(A) is not correct, but (R) is correct
Both (A) and (R) are incorrect

Detailed SolutionFrom the following two statements of Assertion (A) and Reason (R). Indicate the correct option. Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

28. Which of the following statements relating to incentive payments is correct?

In Halsey incentive plan, bonus paid to a worker is equal to 50% of the time saved, divided by the rate per hour
In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time
In Taylor's differential piece rate system, a worker whose output exceeds standard output is paid 100% of piece rate, and a worker whose output falls short of the standard is paid only 50% of piece rate
The Rowan incentive plan is the base of all other incentive payment plans

Detailed SolutionWhich of the following statements relating to incentive payments is correct?

29. A helpful technique, for accurate forecasts about costs to be incurred in future is a part of

unit estimation
production estimation
cost estimation
price estimation

Detailed SolutionA helpful technique, for accurate forecasts about costs to be incurred in future is a part of

30. Plan of action; how an organization meets its opportunities and capabilities is classified as

action plan
strategy
step wise plan
complex plan

Detailed SolutionPlan of action; how an organization meets its opportunities and capabilities is classified as

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