Costing Archives

31. In Regression Analysis, testing of assumptions if these are true or not is classified as

weighted analysis

average analysis

significance analysis

specification analysis

Detailed SolutionIn Regression Analysis, testing of assumptions if these are true or not is classified as

32. “BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is”

Rs. 60,532

Rs. 61,120

Rs. 66,532

Rs. 86,620

Detailed Solution“BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is”

33. Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

relevant purchase order costs

relevant inventory carrying costs

irrelevant inventory carrying costs

relevant opportunity cost of capital

Detailed SolutionProfit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

34. EOQ is computed by:

$$rac{{2D}}{{Ci}}$$

$$rac{{Ci}}{{100}}$$

$$sqrt {rac{{2D{C_0}}}{{Ci}}} $$

$$rac{D}{{100}}$$

Detailed SolutionEOQ is computed by:

35. Significant non-cash transactions are included in

cash flow from operating activities

cash flow from investing activities

cash flow from financing activities

None of the above

Detailed SolutionSignificant non-cash transactions are included in

36. . . . . . . . . process loss should be transferred to costing profit & loss account.

abnormal

normal

Both A and B

None of these

Detailed Solution. . . . . . . . process loss should be transferred to costing profit & loss account.

37. Classification of cost is useful ________.

to find gross profit

to find net profit

to identify costs

to identify efficiency

Detailed SolutionClassification of cost is useful ________.

38. Difference between attendance time and job time is _______.

job time

over time

actual time

idle time

Detailed SolutionDifference between attendance time and job time is _______.

39. Material price variance is the difference between standard and actual prices of materials used multiplied by . . . . . . . .

Actual quantity of materials used

Budgeted quantity of materials used

Standard quantity of materials used

Either A or B

Detailed SolutionMaterial price variance is the difference between standard and actual prices of materials used multiplied by . . . . . . . .

40. Over time is ________.

actual hours being more than normal time

actual hours being more than standard time

standard hours being more than actual hours

actual hours being less than standard time

Detailed SolutionOver time is ________.

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