Costing

291. When is a business unit known to be a profit centre?

If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control
If its management is compensated based on the level of profitability
If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply

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known to be a profit centre?" class="read-more button" href="https://exam.pscnotes.com/mcq/when-is-a-business-unit-known-to-be-a-profit-centre/#more-55788">Detailed SolutionWhen is a business unit known to be a profit centre?

293. In process and job costing system, normal spoilage cost is considered as

conversion costs
sunk costs
inventoriable costs
non inventoriable costs

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as" class="read-more button" href="https://exam.pscnotes.com/mcq/in-process-and-job-costing-system-normal-spoilage-cost-is-considered-as/#more-55766">Detailed SolutionIn process and job costing system, normal spoilage cost is considered as

294. Overhead can be classified according to function-wise as ________.

fixed o/h, variable o/h and semi-variable o/h
controllable o/h and uncontrollable o/h
manufacturing o/h, administration o/h and selling & distribution o/h

Detailed SolutionOverhead can be classified according to function-wise as ________.

295. A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:

2,000 units
3,000 units
4,000 units
6,000 units

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point is:" class="read-more button" href="https://exam.pscnotes.com/mcq/a-company-makes-a-single-product-and-incurs-fixed-costs-of-rs-30000-per-annum-variable-cost-per-unit-is-rs-5-and-each-unit-sells-for-rs-15-annual-sales-demand-is-7000-units-the-breakeven-point-is/#more-55752">Detailed SolutionA company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:

296. The contract cost is used in-

Ship building
Aircraft industry
Self-propelled vehicle industry
None of these

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class="read-more button" href="https://exam.pscnotes.com/mcq/the-contract-cost-is-used-in/#more-55743">Detailed SolutionThe contract cost is used in-

297. The budget relating to . . . . . . . . must be prepared first and the other budgets should be prepared in the light of that factor.

limiting factor
materials
labour
production

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prepared in the light of that factor." class="read-more button" href="https://exam.pscnotes.com/mcq/the-budget-relating-to-must-be-prepared-first-and-the-other-budgets-should-be-prepared-in-the-light-of-that-factor/#more-55689">Detailed SolutionThe budget relating to .
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. . . . . . . must be prepared first and the other budgets should be prepared in the light of that factor.

298. Given below are two statement. one labelled as Assertion (A) and other as Reason (R): Assertion (A): Cost accounting is complementary to financial accounting. Reason (R): The result of cost accounting are not trustworthy. Choose the correct answer

Both (A) and (R) are true and (R) is correct explanation of (A)
Both (A) and (R) are true but (R) is not the correct explanation of (R)
(A) is true but (R) is false
(A) is false but (R) is true

Detailed SolutionGiven below are two statement. one labelled as Assertion (A) and other as Reason (R):

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Assertion (A): Cost accounting is complementary to financial accounting. Reason (R): The result of cost accounting are not trustworthy. Choose the correct answer

299. Direct material Rs 25,000 and wages Rs 15,000 and direct expenses Rs 5,000 What would be the factory cost if factory overhead rate is 20%.

Rs. 45,000
Rs. 50,000
Rs. 54,000
Rs. 60,000

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class="read-more button" href="https://exam.pscnotes.com/mcq/direct-material-rs-25000-and-wages-rs-15000-and-direct-expenses-rs-5000-what-would-be-the-factory-cost-if-factory-overhead-rate-is-20/#more-55666">Detailed SolutionDirect material Rs 25,000
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and wages Rs 15,000 and direct expenses Rs 5,000 What would be the factory cost if factory overhead rate is 20%.

300. If any by-product is produced and sold it is credited to ________.

profit and loss a/c
by-product a/c
process a/c
abnormal gain a/c

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81.2-142.7 81.2z"/> Subscribe on YouTube is credited to ________." class="read-more button" href="https://exam.pscnotes.com/mcq/if-any-by-product-is-produced-and-sold-it-is-credited-to-________/#more-55665">Detailed SolutionIf any by-product is produced and sold it is credited to ________.
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