[amp_mcq option1=”Both (A) and (R) are correct, and (R) is the correct reason for (A)” option2=”Both (A) and (R) are correct, but (R) does not explain (A) correctly” option3=”(A) is correct, but (R) is incorrect” option4=”(A) is incorrect, but (R) is correct” correct=”option1″]
Costing
32. Under the marginal costing concept, unit product cost would most likely be increased by
[amp_mcq option1=”a decrease in the number of units produced” option2=”an increase in the number of units produced” option3=”an increase in the commission paid to salesman for each units sold” option4=”a decrease in the commission paid to salesman for each units sold” correct=”option1″]
33. Under applied or over applied factory overhead should be:
[amp_mcq option1=”carried forward to next year” option2=”shown as an extraordinary item” option3=”apportioned among cost of goods sold and applicable to inventory” option4=”written off” correct=”option3″]
Detailed SolutionUnder applied or over applied factory overhead should be:
34. Direct material is a _______.
[amp_mcq option1=”fixed cost” option2=”variable cost” option3=”semi variable cost” option4=”semi fixed cost” correct=”option1″]
35. Calculating ratio for industry analysis implies all of the following except,
[amp_mcq option1=”it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry” option2=”it helps to assess the financial standing of the firm as compared to other firms in the same industry” option3=”it is not possible to standardise the accounting data of various firms following varied accounting policies” option4=”comparison of average of the industry with those of the firm” correct=”option1″]
Detailed SolutionCalculating ratio for industry analysis implies all of the following except,
36. If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be
[amp_mcq option1=”$5,000″ option2=”$35,000″ option3=”$15,000″ option4=”$45,000″ correct=”option4″]
37. In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are
[amp_mcq option1=”inventoriable costs” option2=”finished costs” option3=”factory overhead costs” option4=”manufacturing overhead costs” correct=”option1″]
38. . . . . . . . . includes financial and cost accounting, tax planning and tax accounting.
[amp_mcq option1=”Financial accounting” option2=”Cost accounting” option3=”Management accounting” option4=”None of these” correct=”option1″]
39. Unsuccessful research expenditure should be . . . . . . . . cost accounts.
[amp_mcq option1=”excluded from” option2=”included in” option3=”apportioned in” option4=”None of these” correct=”option1″]
Detailed SolutionUnsuccessful research expenditure should be . . . . . . . . cost accounts.
40. Inter process profits are ________.
[amp_mcq option1=”credited to each process a/c” option2=”debited to respective process a/c” option3=”shown only in the finished stock a/c” option4=”shown in the balance sheet” correct=”option1″]