Costing

31. Most suitable basis for apportioning insurance of machine would be:

Floor Area
Value of Machines
No of Workers
No of Machines

Detailed SolutionMost suitable basis for apportioning insurance of machine would be:

32. Statutory cost audit are applicable only to:

Firm
Company
Individual
Society

Detailed SolutionStatutory cost audit are applicable only to:

33. Contract costing is not used in one of the following industries:

Ship building
Civil construction
Automobiles
Construction of bridges

Detailed SolutionContract costing is not used in one of the following industries:

34. In stand-alone revenue-allocation method, type of weights available for this method is

selling prices as weight
unit costs as weights
physical units as weights
all of above

Detailed SolutionIn stand-alone revenue-allocation method, type of weights available for this method is

35. What is a serious limitation of financial ratio?

Ratios are not predictive
Ratios indicate weakness only
Ratios can be used only by themselves
Ratios are screening devices

Detailed SolutionWhat is a serious limitation of financial ratio?

36. Life cycle costing

is sometimes used as a basis for cost planning and product pricing
includes only manufacturing costs incurred over the life of the product
includes only manufacturing cost, selling expenses and distribution expense
emphasises cost savings opportunities during the manufacturing cycle

Detailed SolutionLife cycle costing

37. Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called

conversion expense costing system
inventory costing system
process costing system
job costing system

Detailed SolutionCosting system, which classify cost into cost categories in a way when an expense is incurred in process is called

38. Cost accounting records both monetary and . . . . . . . . units.

physical
cost
Both A and B
None of these

Detailed SolutionCost accounting records both monetary and . . . . . . . . units.

39. Which of the following methods of stock valuation results in lower valuation of inventory and lower income when prices are rising:

FIFO Method
LIFO Method
Simple Average Method
Weighted Average Method

Detailed SolutionWhich of the following methods of stock valuation results in lower valuation of inventory and lower income when prices are rising:

40. Who proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?

Keith V. Smith
Miller and Orr
William J. Baumol
J. M. Keynes

Detailed SolutionWho proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?

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