Costing Archives

21. Where the work is undertaken to Customer’s special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

job

batch

operation

output

Detailed SolutionWhere the work is undertaken to Customer’s special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

22. According to which of the following methods of valuation, issuances are linked to current economic prices?

LIFO method

FIFO method

HIFO method

Weighted average value method

Detailed SolutionAccording to which of the following methods of valuation, issuances are linked to current economic prices?

23. Standard costs is . . . . . . . .

predetermined cost

budgeted cost

actual cost

None of these

Detailed SolutionStandard costs is . . . . . . . .

24. If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be

$4,730,000

$3,730,000

$2,730,000

$1,730,000

Detailed SolutionIf budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be

25. Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?

General price level method

Specific price level method

Current cost accounting method

Generally accepted accounting principles

Detailed SolutionWhich of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?

26. If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be

$5,000

$4,500

$5,500

$6,000

Detailed SolutionIf an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be

27. An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate

profit variance

investment variance

cost variance

selling price variance

Detailed SolutionAn actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate

28. The purchase of machinery by issuing long-term notes payable should be reported as a

non-cash investing and financing activity

cash outflow in the operating activity

cash outflow in the investing activity

cash outflow in the financing activity

Detailed SolutionThe purchase of machinery by issuing long-term notes payable should be reported as a

29. An example of rework is

short lengths from wood work

defective aluminium cans recycled by manufacturer

detection of defective pieces before shipment

none of above

Detailed SolutionAn example of rework is

30. Taylor’s differential piece work plan provides that

All labourers should be assigned different amount of work

All labourers should be put in different time-period

Those who produce above standard should receive higher wages than those producing below standard

Payment should be the same on a fixed standard

Detailed SolutionTaylor’s differential piece work plan provides that

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