Costing

21. The cause of increase in cost per unit under process costing is

Abnormal wastage
Normal wastage
Abnormal gain
Normal gain

Detailed SolutionThe cause of increase in cost per unit under process costing is

22. Which of the following methods of stock control aims at concentrating efforts on selected items of material?

Perpetual inventory system
Material turnover ratio
Level setting
ABC analysis

Detailed SolutionWhich of the following methods of stock control aims at concentrating efforts on selected items of material?

23. Collection of cost data, according to accounting system in an organized way is classified as

system accumulation
accumulated data
cost accumulation
organized accumulation

Detailed SolutionCollection of cost data, according to accounting system in an organized way is classified as

24. Methods used to allocate costs of reciprocal support departments include

direct method
step down
reciprocal method
all of above

Detailed SolutionMethods used to allocate costs of reciprocal support departments include

25. Match the following. List-I List-II a. Operating profit 1. Capital employed = . . . . . . . . + Preference share capital b. Liquid liabilities 2. . . . . . . . . = Gross profit – Operating expenses c. Capital employed 3. Quick assets = Quick ratio × . . . . . . . . d. Equity share capital 4. Fixed assets ratio = Fixed assets ÷ . . . . . . . .

a-2, b-3, c-4, d-1
a-3, b-4, c-1, d-2
a-4, b-3, c-2, d-1
a-2, b-1, c-4, d-3

Detailed SolutionMatch the following. List-I List-II a. Operating profit 1. Capital employed = . . . . . . . . + Preference share capital b. Liquid liabilities 2. . . . . . . . . = Gross profit – Operating expenses c. Capital employed 3. Quick assets = Quick ratio × . . . . . . . . d. Equity share capital 4. Fixed assets ratio = Fixed assets ÷ . . . . . . . .

26. The cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?

Direct material inventory
Work in-process inventory
Finished goodsinventory
Supplier inventory

Detailed SolutionThe cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?

27. ___________ is a summary of all functional budgets in a capsule form.

Functional Budget
Master Budget
Long Period Budget
Flexible Budget

Detailed Solution___________ is a summary of all functional budgets in a capsule form.

28. Broad’s average use to assign cost of revenue to cost objects will be classified as

refined costing system
refined selling system
undefined costing
defined selling system

Detailed SolutionBroad’s average use to assign cost of revenue to cost objects will be classified as

29. Cost of production is

Prime cost + Factory overheads
Factory cost + Administrative overheads
Direct cost + Indirect expenses
Prime cost + Administrative overheads

Detailed SolutionCost of production is

30. Three types of standards are . . . . . . . .

Current standard, basic standard and normal standard
Currency standard, basel standard and actual standard
Actual standard, estimated standard and expected standard
Expected standard, ideal standard and current standard

Detailed SolutionThree types of standards are . . . . . . . .

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