Costing Archives

21. A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

accounting period costing system

process costing system

job costing system

none of above

Detailed SolutionA unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

22. Third ranked product in incremental revenue-allocation method is known as

primary product

First incremental product

Second incremental product

Third incremental product

Detailed SolutionThird ranked product in incremental revenue-allocation method is known as

23. A bill of material serves the purpose of . . . . . . . .

material requisition

stores ledger

material issue analysis sheet

None of these

Detailed SolutionA bill of material serves the purpose of . . . . . . . .

24. Relationship between independent variable and dependent variable must be

general ledger

non-achievable

non measureable

economically plausible

Detailed SolutionRelationship between independent variable and dependent variable must be

25. Continuous budget is also known as

rolling budget

pin budget

specific budget

past budget

Detailed SolutionContinuous budget is also known as

26. For companies in service sector, cost which is not considerable is

Inventoriable costs

finished costs

factory overhead costs

manufacturing overhead costs

Detailed SolutionFor companies in service sector, cost which is not considerable is

27. When opening stock is Rs. 50,000, closing stock is Rs. 60,000 and the cost of goods sold is Rs. 2,20,000, the stock turnover ratio is:

2 times

3 times

4 times

5 times

Detailed SolutionWhen opening stock is Rs. 50,000, closing stock is Rs. 60,000 and the cost of goods sold is Rs. 2,20,000, the stock turnover ratio is:

28. First step in constant gross margin percentage NRV method is to allocate joint to compute

Gross margin percentage

total production cost of each product

allocated joint costs

cost of split off point

Detailed SolutionFirst step in constant gross margin percentage NRV method is to allocate joint to compute

29. Depreciation of plant can be apportioned on the basis of ________.

plant value

plant size

working days

output produced

Detailed SolutionDepreciation of plant can be apportioned on the basis of ________.

30. What is the basic difference between a static budget and a flexible budget?

A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range

A static budget is for an entire production, but a flexible budget is applicable only to a single department

Flexible budget allow management latitude in meeting goals, where as a static budget is based on a fixed standard

A flexible budget considers only variable costs, but a static budget considers all costs

Detailed SolutionWhat is the basic difference between a static budget and a flexible budget?