Costing

31. In Regression Analysis, testing of assumptions if these are true or not is classified as

weighted analysis
average analysis
significance analysis
specification analysis

Detailed SolutionIn Regression Analysis, testing of assumptions if these are true or not is classified as

32. “BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is”

Rs. 60,532
Rs. 61,120
Rs. 66,532
Rs. 86,620

Detailed Solution“BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is”

33. Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

relevant purchase order costs
relevant inventory carrying costs
irrelevant inventory carrying costs
relevant opportunity cost of capital

Detailed SolutionProfit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

34. EOQ is computed by:

$$ rac{{2D}}{{Ci}}$$
$$ rac{{Ci}}{{100}}$$
$$sqrt { rac{{2D{C_0}}}{{Ci}}} $$
$$ rac{D}{{100}}$$

Detailed SolutionEOQ is computed by:

35. Significant non-cash transactions are included in

cash flow from operating activities
cash flow from investing activities
cash flow from financing activities
None of the above

Detailed SolutionSignificant non-cash transactions are included in

36. . . . . . . . . process loss should be transferred to costing profit & loss account.

abnormal
normal
Both A and B
None of these

Detailed Solution. . . . . . . . process loss should be transferred to costing profit & loss account.

37. Classification of cost is useful ________.

to find gross profit
to find net profit
to identify costs
to identify efficiency

Detailed SolutionClassification of cost is useful ________.

38. Difference between attendance time and job time is _______.

job time
over time
actual time
idle time

Detailed SolutionDifference between attendance time and job time is _______.

39. Material price variance is the difference between standard and actual prices of materials used multiplied by . . . . . . . .

Actual quantity of materials used
Budgeted quantity of materials used
Standard quantity of materials used
Either A or B

Detailed SolutionMaterial price variance is the difference between standard and actual prices of materials used multiplied by . . . . . . . .

40. Over time is ________.

actual hours being more than normal time
actual hours being more than standard time
standard hours being more than actual hours
actual hours being less than standard time

Detailed SolutionOver time is ________.

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