Costing Archives - Page 3 of 116 - MCQ and Quiz for Exams

21. Average method of pricing the material issues is useful when ___________.

material prices are rising

material prices are falling

material prices are constant

material prices are fluctuating

Detailed SolutionAverage method of pricing the material issues is useful when ___________.

22. Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as

budget

batching

complexity

process

Detailed SolutionType of plan of a company, which quantities expectations of cash flows, income and financial position is known as

23. Bin card is maintained by the . . . . . . . .

Cost accountant

Clerk

Storekeeper

Branch accountant

Detailed SolutionBin card is maintained by the . . . . . . . .

24. If budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be

$803.571 per labour hour

$805 per labour hour

$905 per labour hour

$802 per labour hour

Detailed SolutionIf budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be

25. Generally types of stores are classified into ________.

two types

three types

four types

five types

Detailed SolutionGenerally types of stores are classified into ________.

26. If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be

69.72%

79.72%

99.75%

89.72%

Detailed SolutionIf budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be

27. Which one of the following is not correct with reference to standard costing?

Standard costing is a system where predetermined costs are used for control of entire organisation

Standard may be expressed in quantitative and monetary measures

Only adverse variances are investigated intensively

Standard is determined for each element of cost

Detailed SolutionWhich one of the following is not correct with reference to standard costing?

28. The debt-equity ratio of a company is 2 : 1. In this relation, match the following. List-I List-II a. Issue of equity shares 1. No change on the ratio b. Cash received from debtors 2. Reduce the ratio c. Redemption of debentures 3. No change on the ratio d. Purchased goods on credit 4. Reduce the ratio

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

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

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

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

Detailed SolutionThe debt-equity ratio of a company is 2 : 1. In this relation, match the following. List-I List-II a. Issue of equity shares 1. No change on the ratio b. Cash received from debtors 2. Reduce the ratio c. Redemption of debentures 3. No change on the ratio d. Purchased goods on credit 4. Reduce the ratio

29. Which one of following is main advantage of quantitative method?

non expression

non constant

objective

non objective

Detailed SolutionWhich one of following is main advantage of quantitative method?

30. Which of the following is not an activity listed in the statement of cash flows?

Financing activities

Operating activities

Funding activities

Investing activities

Detailed SolutionWhich of the following is not an activity listed in the statement of cash flows?

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