Detailed SolutionIn case of rising prices (inflation), LIFO will:
Costing
provide lowest value of closing stock and profit
provide highest value of closing stock and profit
provide highest value of closing stock but lowest value of profit
provide highest value of profit but lowest value of closing stock
Answer is Wrong!
Answer is Right!
22. A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit – Rs 12 Variable cost per unit – Rs 8 Fixed cost for a period – Rs 98,000 Budgeted sales for a period – 30,000 units The margin of safety, expressed as a percentage of budgeted sales,is:
20%
25%
73%
125%
Answer is Wrong!
Answer is Right!
23. Match the items of List-I with those of List-II and indicate the correct answer List-I List-II a. Acid test ratio 1. Profitability analysis b. Debt service coverage ratio 2. Activity analysis c. Debt equity ratio 3. Liquidity analysis d. Stock turnover ratio 4. Long-term solvency analysis
a-2, b-1, c-3, d-4
a-2, c-3, c-4, d-1
a-3, b-4, c-1, d-2
a-3, b-1, c-4, d-2
Answer is Wrong!
Answer is Right!
24. Room/day is the cost unit used in . . . . . . . .
hotels
hospitals
schools
None of these
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Answer is Right!
Detailed SolutionRoom/day is the cost unit used in . . . . . . . .
25. An opportunity cost is . . . . . . . .
the advantage foregone
the cost
the income
None of the above
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Answer is Right!
26. Period cost, which consists income statement of manufacturing companies belongs to
inventory costs
product costs
non-manufacturing costs
manufacturing costs
Answer is Wrong!
Answer is Right!
Detailed SolutionPeriod cost, which consists income statement of manufacturing companies belongs to
27. In accounting, resources sacrifice for achieving or fulfil specific objective is known as
source cost
sacrifice cost
treated cost
cost
Answer is Wrong!
Answer is Right!
28. If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be
14.00%
15.00%
10.00%
12.00%
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Answer is Right!
29. The sum of prime cost and factory overheads is known as which of the following form?
Factory cost
Production cost
Total cost
None of these
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Answer is Right!
30. Audit fess is a part of _______.
works on cost
selling overhead
distribution overhead
administration overhead
Answer is Wrong!
Answer is Right!