Costing Archives

21. Process a/c is ________.

nominal a/c

a real a/c

personal a/c

either nominal or real a/c

Detailed SolutionProcess a/c is ________.

22. Input is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?

7600 units

10,000 units

10, 400 units

12,000 units

Detailed SolutionInput is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output?

23. Which of the following is an abnormal cause of Idle time:

Time taken by workers to travel the distance between the main gate of factory and place of their work

Time lost between the finish of one job and starting of next job

Time spent to meet their personal needs like taking lunch, tea etc

Machine break downs

Detailed SolutionWhich of the following is an abnormal cause of Idle time:

24. If number of units are 3000 and per unit price is $500, then flexible budget variable will be

$1,500,000

$2,500,000

$3,500,000

$4,500,000

Detailed SolutionIf number of units are 3000 and per unit price is $500, then flexible budget variable will be

25. Budgeted direct labour hours are multiplied to direct labour cost rate to calculate

expected total direct labour cost

budgeted total direct labour cost

budgeted total indirect labour cost

expected labour hours

Detailed SolutionBudgeted direct labour hours are multiplied to direct labour cost rate to calculate

26. . . . . . . . . expenses are excluded from cost.

Normal

Abnormal

Both A and B

None of these

Detailed Solution. . . . . . . . expenses are excluded from cost.

27. Wages paid to a labour who was engaged in production activities can be termed as _______.

direct cost

indirect cost

sunk cost

imputed cost

Detailed SolutionWages paid to a labour who was engaged in production activities can be termed as _______.

28. When the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .

abnormal loss

normal loss

loss

None of these

Detailed SolutionWhen the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .

29. Cost plus contract is useful for-

Contractor

Contractee

Both A and B

None of these

Detailed SolutionCost plus contract is useful for-

30. Assertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.

Both (A) and (R) are correct, and (R) correctly explains (A)

Both (A) and (R) are correct, but (R) does not explain (A)

Both (A)and (R) are incorrect

(A) is correct, but (R) is incorrect

Detailed SolutionAssertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23 Test 24

Exit mobile version