[amp_mcq option1=”property tax” option2=”rent for building” option3=”direct material cost” option4=”direct wages” correct=”option1″]
Costing
32. Relationship between cost and cost driver is economically plausible if goodness of fit
[amp_mcq option1=”has meaning” option2=”has no meaning” option3=”has index values” option4=”has no index values” correct=”option1″]
33. In normal costing, situation in which allocated amount of indirect cost is greater than incurred cost, is considered as
[amp_mcq option1=”incurred indirect cost” option2=”over allocated indirect cost” option3=”applied indirect cost” option4=”applied direct cost” correct=”option2″]
34. An amount of spoilage that is natural in any particular production process is classified as
[amp_mcq option1=”normal scrap” option2=”normal spoilage” option3=”abnormal spoilage” option4=”weighted spoilage” correct=”option1″]
35. “Calculate the value of closing stock from the following according to FIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units”
[amp_mcq option1=”Rs. 765″ option2=”Rs. 805″ option3=”Rs. 786″ option4=”Rs. 700″ correct=”option1″]
36. Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as
[amp_mcq option1=”subunit center” option2=”instruction center” option3=”responsibility center” option4=”activity segment” correct=”option3″]
37. In process costing, a joint product is:
[amp_mcq option1=”a product which is later divided into many parts” option2=”a product which is produced simultaneously with other products and is of similar value to at least one of the other products.” option3=”A product which is produced simultaneously with other products but which is of a greater value than any of the other products.” option4=”a product produced jointly with another organization” correct=”option2″]
38. Total cost related to work in process inventory is divided by total units of work done is used to calculate
[amp_mcq option1=”Gross weighted margin” option2=”weighted average revenue” option3=”weighted average cost” option4=”weighted average conversion cost” correct=”option4″]
39. Which of the following statement is true? Statement 1: Financial statements are prepared on the basis of accounting principles. Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.
[amp_mcq option1=”1 is true, but 2 is false” option2=”2 is true, but 1 is false” option3=”Both 1 and 2 are true” option4=”Both 1 and 2 are false” correct=”option3″]
40. The origin of Kaizen costing in
[amp_mcq option1=”India” option2=”Japan” option3=”China” option4=”France” correct=”option2″]