Costing Archives

21. An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called

unadjusted budget rate approach

adjusted allocation rate approach

unadjusted allocation rate approach

adjusted budget rate approach

Detailed SolutionAn allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called

22. In the case of plant, the limiting factor may be:

insufficient capacity

shortage of experienced salesmen

general shortage of power

shortage of materials

Detailed SolutionIn the case of plant, the limiting factor may be:

23. In a machine dominated industry which method of overhead absorption is suitable?

Direct material cost method

Prime cost method

Labour hour method

Machine hour method

Detailed SolutionIn a machine dominated industry which method of overhead absorption is suitable?

24. Match the following. List-I List-II a. Statement of changes in working capital 1. Cash flow statement b. Deferred tax 2. Fixed assets c. Three activities 3. Fund flow statement d. Impairment loss 4. Balance sheet

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

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

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

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

Detailed SolutionMatch the following. List-I List-II a. Statement of changes in working capital 1. Cash flow statement b. Deferred tax 2. Fixed assets c. Three activities 3. Fund flow statement d. Impairment loss 4. Balance sheet

25. In inter process profits, the output of one process is transferred from one process to another not at . . . . . . . . but at . . . . . . . .

market price, actual cost

actual cost, market price

Both A and B

None of these

Detailed SolutionIn inter process profits, the output of one process is transferred from one process to another not at . . . . . . . . but at . . . . . . . .

26. In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

different task

purpose cost

an activity

an allocation cost

Detailed SolutionIn an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as

27. A variable such as activity that causes cost over a given time is

cost driver

cost behaviour

cost centre

None of these

Detailed SolutionA variable such as activity that causes cost over a given time is

28. Approaches used to allocate joint costs include

sales value at split off method

net realizable value method

constant gross margin percentage NRV method

all of above

Detailed SolutionApproaches used to allocate joint costs include

29. Factor used to predict dependent variable is named as

independent variable

function variable

evaluation variable

estimation variable

Detailed SolutionFactor used to predict dependent variable is named as

30. Match the items of List-I with the items of List-II and choose the correct answer. List-I (Critical Control Standards) List-II (Critical Points) a. Physical standards 1. Material cost per unit b. Cost standards 2. Labour hours per unit of output c. Revenue standards 3. Timing of production d. Programme standards 4. Average sales per customer

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

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

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

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

Detailed SolutionMatch the items of List-I with the items of List-II and choose the correct answer. List-I (Critical Control Standards) List-II (Critical Points) a. Physical standards 1. Material cost per unit b. Cost standards 2. Labour hours per unit of output c. Revenue standards 3. Timing of production d. Programme standards 4. Average sales per customer