Costing
Both (A) and (R) are correct, and (R) is the correct reason for (A)
Both (A) and (R) are correct, but (R) does not explain (A) correctly
(A) is correct, but (R) is incorrect
(A) is incorrect, but (R) is correct
Answer is Right!
Answer is Wrong!
32. Under the marginal costing concept, unit product cost would most likely be increased by
a decrease in the number of units produced
an increase in the number of units produced
an increase in the commission paid to salesman for each units sold
a decrease in the commission paid to salesman for each units sold
Answer is Right!
Answer is Wrong!
33. Under applied or over applied factory overhead should be:
carried forward to next year
shown as an extraordinary item
apportioned among cost of goods sold and applicable to inventory
written off
Answer is Right!
Answer is Wrong!
Detailed SolutionUnder applied or over applied factory overhead should be:
34. Direct material is a _______.
fixed cost
variable cost
semi variable cost
semi fixed cost
Answer is Right!
Answer is Wrong!
35. Calculating ratio for industry analysis implies all of the following except,
it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry
it helps to assess the financial standing of the firm as compared to other firms in the same industry
it is not possible to standardise the accounting data of various firms following varied accounting policies
comparison of average of the industry with those of the firm
Answer is Right!
Answer is Wrong!
Detailed SolutionCalculating ratio for industry analysis implies all of the following except,
36. If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be
$5,000
$35,000
$15,000
$45,000
Answer is Right!
Answer is Wrong!
37. In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are
inventoriable costs
finished costs
factory overhead costs
manufacturing overhead costs
Answer is Right!
Answer is Wrong!
38. . . . . . . . . includes financial and cost accounting, tax planning and tax accounting.
Financial accounting
Cost accounting
Management accounting
None of these
Answer is Right!
Answer is Wrong!
39. Unsuccessful research expenditure should be . . . . . . . . cost accounts.
excluded from
included in
apportioned in
None of these
Answer is Right!
Answer is Wrong!
Detailed SolutionUnsuccessful research expenditure should be . . . . . . . . cost accounts.
40. Inter process profits are ________.
credited to each process a/c
debited to respective process a/c
shown only in the finished stock a/c
shown in the balance sheet
Answer is Right!
Answer is Wrong!