Costing

31. Which of the following is incorrect for material variances?

MCV = (SQ × SP) - (AQ × AP)
MPV = AQ(SP - AP)
MUV = AP(SQ - AQ)
MYV = SC per unit (AY - SY)

Detailed SolutionWhich of the following is incorrect for material variances?

32. The profit volume ratio of an enterprise is 40%.To offset a 10% decrease in the selling price, by how much should the sale increase?

10%
20%
25%
40%

Detailed SolutionThe profit volume ratio of an enterprise is 40%.To offset a 10% decrease in the selling price, by how much should the sale increase?

33. When cash is received from contractee which a/c should be credited.

Cash a/c
Contract a/c
Contractor a/c
Contractee a/c

Detailed SolutionWhen cash is received from contractee which a/c should be credited.

34. Maintenance charges are in the nature of . . . . . . . . expenses.

Fixed
Variable
Semi-variable
None of these

Detailed SolutionMaintenance charges are in the nature of . . . . . . . . expenses.

35. The type of process loss that should not affect the cost of inventory value is _________.

abnormal loss
normal loss
seasonal loss
standard loss

Detailed SolutionThe type of process loss that should not affect the cost of inventory value is _________.

36. Work measurement method of cost estimation is also called

price engineering method
industrial engineering method
measuring engineering method
unit engineering method

Detailed SolutionWork measurement method of cost estimation is also called

37. During the period of rising prices, higher profits can be shown by valuing stock at:

L.I.F.O. basis
F.I.F.O. basis
Simple average price
Weighted average price

Detailed SolutionDuring the period of rising prices, higher profits can be shown by valuing stock at:

38. In goods transport service the cost unit is ________.

cost per ton
cost per hour
cost per ton kilo meters
cost per vehicle

Detailed SolutionIn goods transport service the cost unit is ________.

39. Sunk costs are:

relevant for decision making
Not relevant for decision making
cost to be incurred in future
future costs

Detailed SolutionSunk costs are:

40. Type of spoilage, which is considered as controllable and can be avoided is called

abnormal spoilage
normal spoilage
transferred-in spoilage
transferred-out spoilage

Detailed SolutionType of spoilage, which is considered as controllable and can be avoided is called

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