Costing

31. An example of fixed cost ________.

property tax
rent for building
direct material cost
direct wages

Detailed SolutionAn example of fixed cost ________.

32. Relationship between cost and cost driver is economically plausible if goodness of fit

has meaning
has no meaning
has index values
has no index values

Detailed SolutionRelationship between cost and cost driver is economically plausible if goodness of fit

33. In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as

incurred indirect cost
over allocated indirect cost
applied indirect cost
applied direct cost

Detailed SolutionIn normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as

34. An amount of spoilage that is natural in any particular production process is classified as

normal scrap
normal spoilage
abnormal spoilage
weighted spoilage

Detailed SolutionAn amount of spoilage that is natural in any particular production process is classified as

35. “Calculate the value of closing stock from the following according to FIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”

Rs. 765
Rs. 805
Rs. 786
Rs. 700

Detailed Solution“Calculate the value of closing stock from the following according to FIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”

36. Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as

subunit center
instruction center
responsibility center
activity segment

Detailed SolutionSegment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as

37. In process costing, a joint product is:

a product which is later divided into many parts
a product which is produced simultaneously with other products and is of similar value to at least one of the other products.
A product which is produced simultaneously with other products but which is of a greater value than any of the other products.
a product produced jointly with another organization

Detailed SolutionIn process costing, a joint product is:

38. Total cost related to work in process inventory is divided by total units of work done is used to calculate

Gross weighted margin
weighted average revenue
weighted average cost
weighted average conversion cost

Detailed SolutionTotal cost related to work in process inventory is divided by total units of work done is used to calculate

39. Which of the following statement is true? Statement 1: Financial statements are prepared on the basis of accounting principles. Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.

1 is true, but 2 is false
2 is true, but 1 is false
Both 1 and 2 are true
Both 1 and 2 are false

Detailed SolutionWhich of the following statement is true? Statement 1: Financial statements are prepared on the basis of accounting principles. Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.

40. The origin of Kaizen costing in

India
Japan
China
France

Detailed SolutionThe origin of Kaizen costing in

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