Costing

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 × actual labour
Idle time × standard rate
Idle time × budgeted labour rate
Idle time × historical cost

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

24. An example of shrinkage costs is

incoming freight
storage costs
insurance
clerical errors

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button" href="https://exam.pscnotes.com/mcq/an-example-of-shrinkage-costs-is/#more-59488">Detailed SolutionAn example of shrinkage costs is

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

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change in output d. Break-even point 4. Margin of safety" class="read-more button" href="https://exam.pscnotes.com/mcq/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-una/#more-59463">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 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

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

27. Administration and management overheads are realized as a percentage

Direct material
Direct wages
Prime cost
Factory cost

Detailed

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SolutionAdministration and management overheads are realized as a percentage

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

Kolkata
Mumbai
Delhi
Allahabad

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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 SolutionThe head office of the institute of cost and works accountants of India is located at

29. Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

heterogeneous price pool
homogenous cost pool
heterogeneous cost pool
homogenous price pool

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class="youtube-icon"> Subscribe on YouTube href="https://exam.pscnotes.com/mcq/cost-pool-category-which-have-similar-cause-and-effect-relationship-with-each-cost-driver-uses-as-an-allocation-base-is-classified-as/#more-59434">Detailed SolutionCost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

30. Out of pocket costs involve payment to . . . . . . . . .

outsiders
self
employees
None of the above

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. . . . ." class="read-more button" href="https://exam.pscnotes.com/mcq/out-of-pocket-costs-involve-payment-to/#more-59431">Detailed SolutionOut of pocket costs involve payment to . . . . . . . . .
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