Costing

[amp_mcq option1=”unadjusted budget rate approach” option2=”adjusted allocation rate approach” option3=”unadjusted allocation rate approach” option4=”adjusted budget rate approach” correct=”option2″]

Detailed SolutionAn allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called

[amp_mcq option1=”insufficient capacity” option2=”shortage of experienced salesmen” option3=”general shortage of power” option4=”shortage of materials” correct=”option1″]

Detailed SolutionIn the case of plant, the limiting factor may be:

[amp_mcq option1=”Direct material cost method” option2=”Prime cost method” option3=”Labour hour method” option4=”Machine hour method” correct=”option4″]

Detailed SolutionIn a machine dominated industry which method of overhead absorption is suitable?

[amp_mcq option1=”a-1, b-2, c-3, d-4″ option2=”a-3, b-4, c-2, d-1″ option3=”a-3, b-4, c-1, d-2″ option4=”a-4, b-3, c-1, d-2″ correct=”option1″]

Detailed SolutionMatch the following. List-I List-II a. Statement of changes in working capital 1. Cash flow statement b. Deferred tax 2. Fixed assets c. Three activities 3. Fund flow statement d. Impairment loss 4. Balance sheet

[amp_mcq option1=”market price, actual cost” option2=”actual cost, market price” option3=”Both A and B” option4=”None of these” correct=”option4″]

Detailed SolutionIn inter process profits, the output of one process is transferred from one process to another not at . . . . . . . . but at . . . . . . . .

[amp_mcq option1=”different task” option2=”purpose cost” option3=”an activity” option4=”an allocation cost” correct=”option3″]

Detailed SolutionIn an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

[amp_mcq option1=”cost driver” option2=”cost behaviour” option3=”cost centre” option4=”None of these” correct=”option1″]

Detailed SolutionA variable such as activity that causes cost over a given time is

[amp_mcq option1=”sales value at split off method” option2=”net realizable value method” option3=”constant gross margin percentage NRV method” option4=”all of above” correct=”option4″]

Detailed SolutionApproaches used to allocate joint costs include

[amp_mcq option1=”independent variable” option2=”function variable” option3=”evaluation variable” option4=”estimation variable” correct=”option1″]

Detailed SolutionFactor used to predict dependent variable is named as

[amp_mcq option1=”a-2, b-1, c-4, d-3″ option2=”a-2, b-1, c-3, d-4″ option3=”a-1, b-2, c-4, d-3″ option4=”a-4, b-1, c-3, d-2″ correct=”option1″]

Detailed SolutionMatch the items of List-I with the items of List-II and choose the correct answer. List-I (Critical Control Standards) List-II (Critical Points) a. Physical standards 1. Material cost per unit b. Cost standards 2. Labour hours per unit of output c. Revenue standards 3. Timing of production d. Programme standards 4. Average sales per customer