Costing

[amp_mcq option1=”Floor Area” option2=”Value of Machines” option3=”No of Workers” option4=”No of Machines” correct=”option2″]

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

[amp_mcq option1=”Firm” option2=”Company” option3=”Individual” option4=”Society” correct=”option2″]

Detailed SolutionStatutory cost audit are applicable only to:

[amp_mcq option1=”Ship building” option2=”Civil construction” option3=”Automobiles” option4=”Construction of bridges” correct=”option3″]

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

[amp_mcq option1=”selling prices as weight” option2=”unit costs as weights” option3=”physical units as weights” option4=”all of above” correct=”option4″]

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

[amp_mcq option1=”Ratios are not predictive” option2=”Ratios indicate weakness only” option3=”Ratios can be used only by themselves” option4=”Ratios are screening devices” correct=”option1″]

Detailed SolutionWhat is a serious limitation of financial ratio?

[amp_mcq option1=”is sometimes used as a basis for cost planning and product pricing” option2=”includes only manufacturing costs incurred over the life of the product” option3=”includes only manufacturing cost, selling expenses and distribution expense” option4=”emphasises cost savings opportunities during the manufacturing cycle” correct=”option1″]

Detailed SolutionLife cycle costing

[amp_mcq option1=”conversion expense costing system” option2=”inventory costing system” option3=”process costing system” option4=”job costing system” correct=”option3″]

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

[amp_mcq option1=”physical” option2=”cost” option3=”Both A and B” option4=”None of these” correct=”option2″]

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

[amp_mcq option1=”FIFO Method” option2=”LIFO Method” option3=”Simple Average Method” option4=”Weighted Average Method” correct=”option2″]

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

[amp_mcq option1=”Keith V. Smith” option2=”Miller and Orr” option3=”William J. Baumol” option4=”J. M. Keynes” correct=”option2″]

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