Costing

31. Which of following is an example of purchasing costs?

incoming freight
storage costs
insurance
spoilage

Detailed SolutionWhich of following is an example of purchasing costs?

32. Number of units are 5000 and per unit price is $60, then flexible budget variable would be

$5,000,000
$3,000,000
$2,000,000
$1,000,000

Detailed SolutionNumber of units are 5000 and per unit price is $60, then flexible budget variable would be

33. Which of the following relate to measures of non-financial performance of a concern? 1. Customer satisfaction 2. Business process improvement 3. Economic value added 4. Learning organisation Select the correct answer

1, 2 and 4
2, 4 and 3
4, 1 and 3
All of these

Detailed SolutionWhich of the following relate to measures of non-financial performance of a concern? 1. Customer satisfaction 2. Business process improvement 3. Economic value added 4. Learning organisation Select the correct answer

34. Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as

reduced work
spoilage
rework
scrap

Detailed SolutionProduction units that do not meet customer specification, but can be sold to other customers as finished goods are classified as

35. Method which determines weights of cost allocation by considering cost of each user as separate entity is known as

bundled products allocation method
variable cost allocation method
stand-alone cost allocation method
incremental cost allocation method

Detailed SolutionMethod which determines weights of cost allocation by considering cost of each user as separate entity is known as

36. Total cost is the combination of:

Cost of production, selling & distribution overhead
Factory overhead & administrative overhead
Prime cost & selling and distribution overhead
Prime cost and works cost

Detailed SolutionTotal cost is the combination of:

37. Which of the following is usually as long-term budget?

Capital expenditure budget
Cash budget
Sales budget
None of these

Detailed SolutionWhich of the following is usually as long-term budget?

38. Cost accounting originated from-

To remove the shortcomings of financial accounting
To remove the shortcomings of managerial accounting
To overcome the shortcomings of standard costing
None of these

Detailed SolutionCost accounting originated from-

39. Toy manufacturing industry should use _______.

unit costing
process costing
batch costing
multiple costing

Detailed SolutionToy manufacturing industry should use _______.

40. Actual loss is more than the predetermined normal loss, it is ________.

normal loss
abnormal loss
seasonal loss
standard loss

Detailed SolutionActual loss is more than the predetermined normal loss, it is ________.

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