Costing

31. Absorption means ________.

charging overheads to cost centres
charging of overheads to cost units
charging of overheads to cost centres or cost units
allotment of overheads to different departments

Detailed SolutionAbsorption means ________.

32. If the prime cost is Rs. 50,000 and factory cost will Rs. 70,000 and office overhead is 50% of factory overhead, then the production cost will be

1,55,000
1,05,000
85,000
80,000

Detailed SolutionIf the prime cost is Rs. 50,000 and factory cost will Rs. 70,000 and office overhead is 50% of factory overhead, then the production cost will be

33. In increasing production volume situation, the behaviour of fixed cost will be . . . . . . . . and variable cost will . . . . . . . .

decreases, increases
increase, decreasing
constant, increase
increase, constant

Detailed SolutionIn increasing production volume situation, the behaviour of fixed cost will be . . . . . . . . and variable cost will . . . . . . . .

34. The costing method in which fixed factory overheads are added to inventory is

process costing
activity based costing
marginal costing
standard costing

Detailed SolutionThe costing method in which fixed factory overheads are added to inventory is

35. In quantitative analysis to estimate cost function, fourth step is to

write a liner function
write price function
write manufacturing function
plot data

Detailed SolutionIn quantitative analysis to estimate cost function, fourth step is to

36. . . . . . . . . budget is the most important budget and it forms the basis on which all the other budgets are built up.

Production
Material
Cash budget
Sales

Detailed Solution. . . . . . . . budget is the most important budget and it forms the basis on which all the other budgets are built up.

37. An expected future cost which diverges in unconventional course of action is known as

partial cost
total cost
irrelevant cost
relevant cost

Detailed SolutionAn expected future cost which diverges in unconventional course of action is known as

38. Labour cost is the second element of ________.

cost
profit
sales
task

Detailed SolutionLabour cost is the second element of ________.

39. . . . . . . . . is concerned with discovery of facts concerning a job and . . . . . . . . is concerned with ascertaining the money value of a job.

Job description, job evaluation
Job specifications, job evaluation
Job analysis, job evaluation
None of these

Detailed Solution. . . . . . . . is concerned with discovery of facts concerning a job and . . . . . . . . is concerned with ascertaining the money value of a job.

40. The internal factors affecting the wage mix include: (i) Relative worth of the job (ii) Regional wage rates (iii) Employer’s ability to pay (iv) Manpower market conditions

(i), (ii) and (iii)
(i) and (iii)
(ii), (iii) and (iv)
All of the above

Detailed SolutionThe internal factors affecting the wage mix include: (i) Relative worth of the job (ii) Regional wage rates (iii) Employer’s ability to pay (iv) Manpower market conditions

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