Costing

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

Detailed SolutionMatch the following. List-I List-II a. Leverage ratio 1. Short-term solvency b. Liquidity ratio 2. Earning capacity c. Turnover ratio 3. Relationship between debt and equity d. Profitability ratio 4. Efficiency of asset management

[amp_mcq option1=”to be implemented” option2=”based on current practice” option3=”based on past prices” option4=”based on sold quantity” correct=”option1″]

Detailed SolutionIn Kaizen budgeting, costs are based on all improvements which is

[amp_mcq option1=”Ensure the manager is punished if things go wrong” option2=”Ensure costs become the responsibility of a specific manager” option3=”Allocate costs to all areas of a business” option4=”Reduce the costs a department incurs” correct=”option2″]

Detailed SolutionResponsibility accounting aims to

[amp_mcq option1=”an application of funds” option2=”a sources of funds” option3=”no flow of funds” option4=”None of these” correct=”option1″]

Detailed SolutionIf provision for taxation is treated as a current liability, then payment of tax is

[amp_mcq option1=”the present value of cash outflows is greater than the future value of cash outflows” option2=”the future value of cash inflows is greater than the present value of cash outflows” option3=”the present value of cash outflows is greater than the present value of cash inflows” option4=”the present value of cash inflows is greater than the present value of cash outflows” correct=”option3″]

Detailed SolutionWhen is the net present value negative,

[amp_mcq option1=”Normal loss” option2=”Abnormal loss” option3=”Abnormal gain” option4=”None of these” correct=”option1″]

Detailed Solution. . . . . . . . arises where the actual process loss is less than the normal predetermined process loss.

[amp_mcq option1=”maximum level – minimum level” option2=”maximum consumption X maximum reorder period” option3=”minimum consumption x minimum reorder period” option4=”normal consumption X normal reorder period” correct=”option4″]

Detailed SolutionReorder level = ________.

[amp_mcq option1=”fixed cost function” option2=”variable cost function” option3=”step variable cost function” option4=”step fixed cost function” correct=”option1″]

Detailed SolutionWithin relevant range, cost function which cost does not change in narrow ranges of activity is called

[amp_mcq option1=”Conversion of debt to equity” option2=”Acquiring an asset through a lease” option3=”Operating and non-operating cash flow information” option4=”Purchasing a building by giving a mortgage to the seller” correct=”option3″]

Detailed SolutionWhich of the following items would be specifically included in the statement of cash flows constructed in compliance with AS-3?

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

Detailed SolutionMatch the following. List-I List-II a. Performance budgeting 1. Fixed budget b. Zero base budgeting 2. Production oriented c. Summary of all functional budgets 3. Jimmy Carter d. Remain unchanged irrespective of level of activity actually attained 4. Master budget