Costing

31. _________ is also known as working capital ratio.

Current ratio
Quick ratio
Liquid ratio
Debt-equity ratio

Detailed Solution_________ is also known as working capital ratio.

32. Machine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the . . . . . . . .

number of hours
number of products produced
number of workers
wages

Detailed SolutionMachine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the . . . . . . . .

33. Which of the following measures the best operating performance?

Ratio of return on total assets
Ratio of return of fixed assets
Ratio of return on shareholder's equity
All of the above

Detailed SolutionWhich of the following measures the best operating performance?

34. Terms used in manufacturing cost systems are

manufacturing costs
prime costs
conversion costs
both B and C

Detailed SolutionTerms used in manufacturing cost systems are

35. If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be

3
0.5003
0.7003
2

Detailed SolutionIf an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be

36. The tier clause in contracts provides protection against possible changes to which of the following?

The value of materials, labour and other expenses
Contract value
Percentage of profit
None of the above

Detailed SolutionThe tier clause in contracts provides protection against possible changes to which of the following?

37. . . . . . . . . is an example of short-term budget.

Cash budget
Capital expenditure budget
Material budget
Both A and C

Detailed Solution. . . . . . . . is an example of short-term budget.

38. Match the following. List-I List-II a. Cost control purposes 1. . . . . . . . . is a predetermined cost b. Standard cost 2. Responsibility accounting fixes responsibility for . . . . . . . . c. Integrates 3. Cost accounting guides future . . . . . . . . d. Production policies 4. Budgeting system . . . . . . . . key managerial functions

a-4, b-3, c-2, d-1
a-2, b-1, c-4, d-3
a-2, b-3, c-4, d-1
a-3, b-2, c-4, d-1

Detailed SolutionMatch the following. List-I List-II a. Cost control purposes 1. . . . . . . . . is a predetermined cost b. Standard cost 2. Responsibility accounting fixes responsibility for . . . . . . . . c. Integrates 3. Cost accounting guides future . . . . . . . . d. Production policies 4. Budgeting system . . . . . . . . key managerial functions

39. Conversion cost is subtracted from direct manufacturing labour cost is to calculate the

direct overheads
overhead costs
factory overhead
manufacturing overhead cost

Detailed SolutionConversion cost is subtracted from direct manufacturing labour cost is to calculate the

40. . . . . . . . . is not the scope of Cost Accountancy.

Ascertaining cost
Cost accounting
Cost control
Tax planning

Detailed Solution. . . . . . . . is not the scope of Cost Accountancy.

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