Costing

31. In case of complete contract, the whole amount of profit is transferred to ________.

contract a/c
work in progress a/c
profit and loss a/c
contractee a/c

Detailed SolutionIn case of complete contract, the whole amount of profit is transferred to ________.

32. What is not included in quick assets?

Cash
Gold
Inventories
Advance for supply of raw materials

Detailed SolutionWhat is not included in quick assets?

33. According to incremental method, party which receives highest ranking in allocation of common cost is classified as

Third incremental party
second incremental party
primary party
First incremental party

Detailed SolutionAccording to incremental method, party which receives highest ranking in allocation of common cost is classified as

34. . . . . . . . . is the excess of overheads absorbed over the actual amount of overheads incurred.

Over absorption of overheads
Under absorption of overheads
Overheads absorption
None of these

Detailed Solution. . . . . . . . is the excess of overheads absorbed over the actual amount of overheads incurred.

35. A document which contains information about materials of specific product, in specific department comes under

costing method
selling method
material acquisition method
none of above

Detailed SolutionA document which contains information about materials of specific product, in specific department comes under

36. Which of the following statements are true about ratio analys is? 1. Ratio analysis is useful in financial analysis. 2. Ratio analysis is helpful in communication and coordination. 3. Ratio analysis is not helpful in identifying weak spots of the business. 4. Ratio analysis is helpful in financial planning and forecasting.

1, 2 and 4
1, 3 and 4
1, 2 and 3
1, 2, 3 and 4

Detailed SolutionWhich of the following statements are true about ratio analys is? 1. Ratio analysis is useful in financial analysis. 2. Ratio analysis is helpful in communication and coordination. 3. Ratio analysis is not helpful in identifying weak spots of the business. 4. Ratio analysis is helpful in financial planning and forecasting.

37. Budgeted total direct labour cost is divided with budgeted total direct labour to calculate

budgeted indirect labour cost rate
expected direct labour cost rate
budgeted direct labour cost rate
expected indirect labour cost rate

Detailed SolutionBudgeted total direct labour cost is divided with budgeted total direct labour to calculate

38. In regression equation, an evaluation criteria considers significance of

independent variable
dependent variable
significance plotting
insignificance plotting

Detailed SolutionIn regression equation, an evaluation criteria considers significance of

39. “How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.”

2,500 units
9,833 units
10,625 units
13,409 units

Detailed Solution“How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.”

40. In . . . . . . . . each job is a cost unit to which all costs are assigned.

Batch costing
Job costing
Process costing
Operation costing

Detailed SolutionIn . . . . . . . . each job is a cost unit to which all costs are assigned.

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