Costing Archives

21. Cost function, in which cost does not change with any change in level of activity is a part of

step price functions

step object functions

step constant functions

step cost functions

Subscribe on YouTube

of" class="read-more button" href="https://exam.pscnotes.com/mcq/cost-function-in-which-cost-does-not-change-with-any-change-in-level-of-activity-is-a-part-of/#more-59548">Detailed Solution

22. If 50% of the contract is completed, then the following amount of profit is normally credited

$${ ext{Earned profit}} imes rac{{50}}{{100}}$$

$${ ext{Earned profit}} imes rac{3}{2} imes rac{{{ ext{Cash received}}}}{{{ ext{Contract value}}}}$$

$${ ext{Earned profit}} imes rac{2}{3} imes rac{{{ ext{Cash received}}}}{{{ ext{Contract value}}}}$$

Detailed SolutionIf 50% of the contract is completed, then the following amount of profit is normally credited

23. Idle time variance is . . . . . . . .

Idle time Ã actual labour

Idle time Ã standard rate

Idle time Ã budgeted labour rate

Idle time Ã historical cost

Join Our Telegram Channel

Subscribe on YouTube

." class="read-more button" href="https://exam.pscnotes.com/mcq/idle-time-variance-is/#more-59489">Detailed Solution

24. An example of shrinkage costs is

incoming freight

storage costs

insurance

clerical errors

Detailed

Solution

25. Match the following. List-I List-II a. Excess of actual sales over the break-even sales volume 1. Contribution b. Sum of fixed cost and profit 2. Cost volume profit analysis c. Break-even chart 3. Unaffected by change in output d. Break-even point 4. Margin of safety

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

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

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

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

Detailed SolutionMatch the following. List-I List-II a. Excess of actual sales over the break-even sales volume 1. Contribution b. Sum of fixed cost

and profit 2. Cost volume profit

Join Our Telegram Channel

analysis c. Break-even chart 3. Unaffected by change in output d. Break-even point 4. Margin of safety

26. . . . . . . . . forms part of cost of production.

Abnormal waste

Normal waste

Both A and B

None of these

Subscribe on YouTube

of cost

Join Our Telegram Channel

of production." class="read-more button" href="https://exam.pscnotes.com/mcq/forms-part-of-cost-of-production/#more-59461">Detailed Solution

27. Administration and management overheads are realized as a percentage

Direct material

Direct wages

Prime cost

Factory cost

Join Our Telegram Channel

288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/administration-and-management-overheads-are-realized-as-a-percentage/#more-59453">Detailed Solution

28. The head office of the institute of cost and works accountants of India is located at

Kolkata

Mumbai

Delhi

Allahabad

Join Our Telegram Channel

74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube button" href="https://exam.pscnotes.com/mcq/the-head-office-of-the-institute-of-cost-and-works-accountants-of-india-is-located-at/#more-59436">Detailed Solution