Costing

[amp_mcq option1=”60″ option2=”600″ option3=”6000″ option4=”1000″ correct=”option3″]

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

[amp_mcq option1=”I, II and III” option2=”II and III” option3=”I and III” option4=”I and II” correct=”option4″]

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.

[amp_mcq option1=”current ratio” option2=”liquidity ratio” option3=”debt equity ratio” option4=”proprietary ratio” correct=”option1″]

Detailed SolutionThe ratio for testing immediate solvency is

[amp_mcq option1=”has the prospect of long-term benefits” option2=”has the prospect of short-term benefits” option3=”applies only to investment in fixed assets” option4=”All of the above” correct=”option1″]

Detailed SolutionA capital investment is one that

[amp_mcq option1=”disadvantage of low high method” option2=”disadvantage of high low method” option3=”advantage of high low method” option4=”advantage of low high method” correct=”option1″]

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

[amp_mcq option1=”specific order” option2=”batch” option3=”job” option4=”contract” correct=”option1″]

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

[amp_mcq option1=”cost representation” option2=”irrelevant range” option3=”relevant range” option4=”graphical representation” correct=”option3″]

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

[amp_mcq option1=”variable equation” option2=”high low method” option3=”low high method” option4=”constant equation” correct=”option1″]

Detailed SolutionMost frequently used methods of quantitative analysis include

[amp_mcq option1=”Job costing” option2=”Operating costing” option3=”Process costing” option4=”Both B and C” correct=”option3″]

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

[amp_mcq option1=”historical costing system” option2=”cost accounting” option3=”management accounting” option4=”None of these” correct=”option1″]

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