Costing Archives - Page 4 of 116 - MCQ and Quiz for Exams

31. Which of the following is incorrect for material variances?

MCV = (SQ Ã SP) - (AQ Ã AP)

MPV = AQ(SP - AP)

MUV = AP(SQ - AQ)

MYV = SC per unit (AY - SY)

Detailed SolutionWhich of the following is incorrect for material variances?

32. When cash is received from contractee which a/c should be credited.

Cash a/c

Contract a/c

Contractor a/c

Contractee a/c

Detailed SolutionWhen cash is received from contractee which a/c should be credited.

33. The profit volume ratio of an enterprise is 40%.To offset a 10% decrease in the selling price, by how much should the sale increase?

10%

20%

25%

40%

Detailed SolutionThe profit volume ratio of an enterprise is 40%.To offset a 10% decrease in the selling price, by how much should the sale increase?

34. Maintenance charges are in the nature of . . . . . . . . expenses.

Fixed

Variable

Semi-variable

None of these

Detailed SolutionMaintenance charges are in the nature of . . . . . . . . expenses.

35. The type of process loss that should not affect the cost of inventory value is _________.

abnormal loss

normal loss

seasonal loss

standard loss

Detailed SolutionThe type of process loss that should not affect the cost of inventory value is _________.

36. Work measurement method of cost estimation is also called

price engineering method

industrial engineering method

measuring engineering method

unit engineering method

Detailed SolutionWork measurement method of cost estimation is also called

37. During the period of rising prices, higher profits can be shown by valuing stock at:

L.I.F.O. basis

F.I.F.O. basis

Simple average price

Weighted average price

Detailed SolutionDuring the period of rising prices, higher profits can be shown by valuing stock at:

38. In goods transport service the cost unit is ________.

cost per ton

cost per hour

cost per ton kilo meters

cost per vehicle

Detailed SolutionIn goods transport service the cost unit is ________.

39. Sunk costs are:

relevant for decision making

Not relevant for decision making

cost to be incurred in future

future costs

Detailed SolutionSunk costs are:

40. Type of spoilage, which is considered as controllable and can be avoided is called

abnormal spoilage

normal spoilage

transferred-in spoilage

transferred-out spoilage

Detailed SolutionType of spoilage, which is considered as controllable and can be avoided is called

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