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

31. When 1000 units are 60% complete in a process, it is equivalent to . . . . . . . . completed units.

60

600

6000

1000

Detailed SolutionWhen 1000 units are 60% complete in a process, it is equivalent to . . . . . . . . completed units.

32. Which of the following statements are correct? I. Inventory includes raw materials, finished goods and work-in-progress. II. Inventory is a part of the working capital. III. Inventory includes goods likely to be purchased.

I, II and III

II and III

I and III

I and II

Detailed SolutionWhich of the following statements are correct? I. Inventory includes raw materials, finished goods and work-in-progress. II. Inventory is a part of the working capital. III. Inventory includes goods likely to be purchased.

33. The ratio for testing immediate solvency is

current ratio

liquidity ratio

debt equity ratio

proprietary ratio

Detailed SolutionThe ratio for testing immediate solvency is

34. A capital investment is one that

has the prospect of long-term benefits

has the prospect of short-term benefits

applies only to investment in fixed assets

All of the above

Detailed SolutionA capital investment is one that

35. Estimation of cost functions, an ignoring information from all points but considering two observation points can be classified as

disadvantage of low high method

disadvantage of high low method

advantage of high low method

advantage of low high method

Detailed SolutionEstimation of cost functions, an ignoring information from all points but considering two observation points can be classified as

36. An automobile service unit uses . . . . . . . . costing.

specific order

batch

job

contract

Detailed SolutionAn automobile service unit uses . . . . . . . . costing.

37. Vertical dashed line in graphical representation of cost function represents the

cost representation

irrelevant range

relevant range

graphical representation

Detailed SolutionVertical dashed line in graphical representation of cost function represents the

38. Most frequently used methods of quantitative analysis include

variable equation

high low method

low high method

constant equation

Detailed SolutionMost frequently used methods of quantitative analysis include

39. Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .

Job costing

Operating costing

Process costing

Both B and C

Detailed SolutionWhere raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .

40. The limitations of . . . . . . . . has led to the development of standard costing system.

historical costing system

cost accounting

management accounting

None of these

Detailed SolutionThe limitations of . . . . . . . . has led to the development of standard costing system.

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