[amp_mcq option1=”MCV = (SQ Ã SP) – (AQ Ã AP)” option2=”MPV = AQ(SP – AP)” option3=”MUV = AP(SQ – AQ)” option4=”MYV = SC per unit (AY – SY)” correct=”option4″]
Detailed SolutionWhich of the following is incorrect for material variances?
Costing
32. When cash is received from contractee which a/c should be credited.
[amp_mcq option1=”Cash a/c” option2=”Contract a/c” option3=”Contractor a/c” option4=”Contractee a/c” correct=”option1″]
Detailed SolutionWhen cash is received from contractee which a/c should be credited.
33. 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?
[amp_mcq option1=”10%” option2=”20%” option3=”25%” option4=”40%” correct=”option1″]
34. Maintenance charges are in the nature of . . . . . . . . expenses.
[amp_mcq option1=”Fixed” option2=”Variable” option3=”Semi-variable” option4=”None of these” correct=”option2″]
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 _________.
[amp_mcq option1=”abnormal loss” option2=”normal loss” option3=”seasonal loss” option4=”standard loss” correct=”option1″]
36. Work measurement method of cost estimation is also called
[amp_mcq option1=”price engineering method” option2=”industrial engineering method” option3=”measuring engineering method” option4=”unit engineering method” correct=”option1″]
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:
[amp_mcq option1=”L.I.F.O. basis” option2=”F.I.F.O. basis” option3=”Simple average price” option4=”Weighted average price” correct=”option2″]
38. In goods transport service the cost unit is ________.
[amp_mcq option1=”cost per ton” option2=”cost per hour” option3=”cost per ton kilo meters” option4=”cost per vehicle” correct=”option3″]
Detailed SolutionIn goods transport service the cost unit is ________.
39. Sunk costs are:
[amp_mcq option1=”relevant for decision making” option2=”Not relevant for decision making” option3=”cost to be incurred in future” option4=”future costs” correct=”option2″]
40. Type of spoilage, which is considered as controllable and can be avoided is called
[amp_mcq option1=”abnormal spoilage” option2=”normal spoilage” option3=”transferred-in spoilage” option4=”transferred-out spoilage” correct=”option1″]
Detailed SolutionType of spoilage, which is considered as controllable and can be avoided is called