Costing

[amp_mcq option1=”implementing income” option2=”implementing decision” option3=”efficient implementation” option4=”effective implementation” correct=”option4″]

Detailed SolutionLast step in developing operating budget is

[amp_mcq option1=”costing department” option2=”stores department” option3=”finance department” option4=”accounting department” correct=”option2″]

Detailed SolutionBin card is maintained by ________.

[amp_mcq option1=”10.1% decrease” option2=”11.2% decrease” option3=”13.3% decrease” option4=”16.0% decrease” correct=”option3″]

Detailed Solution“S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?”

[amp_mcq option1=”expected under cost” option2=”expected over cost” option3=”product under costing” option4=”product over costing” correct=”option3″]

Detailed SolutionProduct which requires low amount of resources, but incur high per unit cost is classified as

[amp_mcq option1=”departmentalization” option2=”primary distribution” option3=”secondary distribution” option4=”classification” correct=”option3″]

Detailed SolutionThe process of redistribution of service department costs to production departments is ________.

[amp_mcq option1=”Operation costing” option2=”Service costing” option3=”Process costing” option4=”Job costing” correct=”option1″]

Detailed Solution. . . . . . . . is the most suitable method in a transport industry.

[amp_mcq option1=”coefficient of determination” option2=”coefficient of index” option3=”coefficient of residual” option4=”coefficient of prediction” correct=”option1″]

Detailed SolutionFormula of 1 – unexplained variation / total variation is used to calculate

[amp_mcq option1=”measurement object” option2=”cost object” option3=”accounting object” option4=”budget object” correct=”option2″]

Detailed SolutionMaterial or anything for which cost is to be measured is known as

[amp_mcq option1=”8,000 Kg” option2=”9,840 kg” option3=”10,000 Kg” option4=”10,160 Kg” correct=”option2″]

Detailed SolutionAT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%. The material usage budget for next year is

[amp_mcq option1=”evaluate variable driver” option2=”evaluate cost driver” option3=”evaluate price driver” option4=”evaluate demand driver” correct=”option1″]

Detailed SolutionIn quantitative analysis of estimating cost function, last and foremost step is to