Costing

31. When 1000 units are 60% complete in a process, it is equivalent to . . . . . . . . completed units.

60
600
6000
1000

Detailed SolutionWhen 1000 units are 60% complete in a process, it is equivalent to . . . . . . . . completed units.

32. Which of the following statements are correct? I. Inventory includes raw materials, finished goods and work-in-progress. II. Inventory is a part of the working capital. III. Inventory includes goods likely to be purchased.

I, II and III
II and III
I and III
I and II

Detailed SolutionWhich of the following statements are correct? I. Inventory includes raw materials, finished goods and work-in-progress. II. Inventory is a part of the working capital. III. Inventory includes goods likely to be purchased.

33. The ratio for testing immediate solvency is

current ratio
liquidity ratio
debt equity ratio
proprietary ratio

Detailed SolutionThe ratio for testing immediate solvency is

34. A capital investment is one that

has the prospect of long-term benefits
has the prospect of short-term benefits
applies only to investment in fixed assets
All of the above

Detailed SolutionA capital investment is one that

35. Estimation of cost functions, an ignoring information from all points but considering two observation points can be classified as

disadvantage of low high method
disadvantage of high low method
advantage of high low method
advantage of low high method

Detailed SolutionEstimation of cost functions, an ignoring information from all points but considering two observation points can be classified as

36. An automobile service unit uses . . . . . . . . costing.

specific order
batch
job
contract

Detailed SolutionAn automobile service unit uses . . . . . . . . costing.

37. Vertical dashed line in graphical representation of cost function represents the

cost representation
irrelevant range
relevant range
graphical representation

Detailed SolutionVertical dashed line in graphical representation of cost function represents the

38. Most frequently used methods of quantitative analysis include

variable equation
high low method
low high method
constant equation

Detailed SolutionMost frequently used methods of quantitative analysis include

39. Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .

Job costing
Operating costing
Process costing
Both B and C

Detailed SolutionWhere raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .

40. The limitations of . . . . . . . . has led to the development of standard costing system.

historical costing system
cost accounting
management accounting
None of these

Detailed SolutionThe limitations of . . . . . . . . has led to the development of standard costing system.

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