Costing

31. Economic Batch Quantity depends on . . . . . . . . and . . . . . . . . costs.

material, labour
set-up costs, carrying
transportation, carrying
warehousing, labour

Detailed SolutionEconomic Batch Quantity depends on . . . . . . . . and . . . . . . . . costs.

32. An increase in fixed costs will result, in which of the following?

A decrease in the contribution sales ratio
A decrease in the contribution per point
An increase in the break-even point sales level
An increase in the margin of safety

Detailed SolutionAn increase in fixed costs will result, in which of the following?

33. Packing cost is ________.

production cost
selling cost
administration cost
distribution cost

Detailed SolutionPacking cost is ________.

34. Success of cost reduction initiatives are evaluated by accurate

cyclical factors
indexed technique
price estimation
cost estimation

Detailed SolutionSuccess of cost reduction initiatives are evaluated by accurate

35. When the completion stage of a contract is less than $$\frac{1}{4},$$ the total expenditure on the contract is transferred to . . . . . . . . account.

Work-in-progress
Profit and loss account
Miscellaneous account
None of these

Detailed SolutionWhen the completion stage of a contract is less than $$\frac{1}{4},$$ the total expenditure on the contract is transferred to . . . . . . . . account.

36. Match the following. List-I (Variances) List-II (Formulae) a. MCV 1. SP (RSQ – AQ) b. MPV 2. SP (SQ – AQ) c. MUV 3. AQ consumed (SP – AP) d. MMV 4. SC – AC

a-4, b-3, c-2, d-1
a-2, b-1, c-4, d-3
a-4, b-1, c-2, d-3
a-3, b-4, c-2, d-1

Detailed SolutionMatch the following. List-I (Variances) List-II (Formulae) a. MCV 1. SP (RSQ – AQ) b. MPV 2. SP (SQ – AQ) c. MUV 3. AQ consumed (SP – AP) d. MMV 4. SC – AC

37. Product which requires large amount of resources, but incur low per unit cost is classified as

product under costing
product over costing
expected under cost
expected over cost

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

38. Cost of sales plus profit is _______.

selling price
value of finished product
value of goods produced
value of stocks

Detailed SolutionCost of sales plus profit is _______.

39. Departmentalization of overhead is known as ________.

primary distribution
secondary distribution
absorption
allocation

Detailed SolutionDepartmentalization of overhead is known as ________.

40. The basis for the payment of cash by contractee under contract is ________.

work certified
work uncertified
contract cost
value of plant used in the contract

Detailed SolutionThe basis for the payment of cash by contractee under contract is ________.

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23Test 24