Costing Archives

31. Assertion (A): Debt-equity ratio indicates the long-term solvency of a company. Reason (R): It measures the ability of the company to pay-off its long-term liabilities. Select the correct answer.

Both (A) and (R) are correct, and (R) is the correct reason for (A)

Both (A) and (R) are correct, but (R) does not explain (A) correctly

(A) is correct, but (R) is incorrect

(A) is incorrect, but (R) is correct

Detailed

Solution

32. Under the marginal costing concept, unit product cost would most likely be increased by

a decrease in the number of units produced

an increase in the number of units produced

an increase in the commission paid to salesman for each units sold

a decrease in the commission paid to salesman for each units sold

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title="Under the marginal costing concept, unit product cost would most likely be increased by" class="read-more button" href="https://exam.pscnotes.com/mcq/under-the-marginal-costing-concept-unit-product-cost-would-most-likely-be-increased-by/#more-45237">Detailed Solution

33. Under applied or over applied factory overhead should be:

carried forward to next year

shown as an extraordinary item

apportioned among cost of goods sold and applicable to inventory

written off

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applied factory overhead should be:" class="read-more button" href="https://exam.pscnotes.com/mcq/under-applied-or-over-applied-factory-overhead-should-be/#more-45220">Detailed Solution

34. Direct material is a _______.

fixed cost

variable cost

semi variable cost

semi fixed cost

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_______." class="read-more button" href="https://exam.pscnotes.com/mcq/direct-material-is-a-_______/#more-45211">Detailed Solution

35. Calculating ratio for industry analysis implies all of the following except,

it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry

it helps to assess the financial standing of the firm as compared to other firms in the same industry

it is not possible to standardise the accounting data of various firms following varied accounting policies

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

$5,000

$35,000

$15,000

$45,000

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42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube class="read-more button" href="https://exam.pscnotes.com/mcq/if-indirect-manufacturing-labour-is-20000-power-cost-is-5000-maintenance-and-supplies-are-of-10000-then-manufacturing-budget-will-be/#more-45166">Detailed Solution

37. In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are

inventoriable costs

finished costs

factory overhead costs

manufacturing overhead costs

Detailed SolutionIn an income statement,

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when costs become cost of sold goods and manufactured products are sold, such costs are

38. . . . . . . . . includes financial and cost accounting, tax planning and tax accounting.

Financial accounting

Cost accounting

Management accounting

None of these

Detailed Solution.

. . . . . . . includes financial and cost accounting, tax planning and tax accounting.

39. Unsuccessful research expenditure should be . . . . . . . . cost accounts.

excluded from

included in

apportioned in

None of these

Detailed Solution

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class="screen-reader-text">Unsuccessful research expenditure should be . . . . . . . . cost accounts.

40. Inter process profits are ________.

credited to each process a/c

debited to respective process a/c

shown only in the finished stock a/c

shown in the balance sheet

132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube class="read-more-container">Detailed Solution

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