Costing Archives

31. Most suitable basis for apportioning insurance of machine would be:

Floor Area

Value of Machines

No of Workers

No of Machines

Detailed SolutionMost suitable basis for apportioning insurance of machine would be:

32. Statutory cost audit are applicable only to:

Firm

Company

Individual

Society

Detailed SolutionStatutory cost audit are applicable only to:

33. Contract costing is not used in one of the following industries:

Ship building

Civil construction

Automobiles

Construction of bridges

Detailed SolutionContract costing is not used in one of the following industries:

34. In stand-alone revenue-allocation method, type of weights available for this method is

selling prices as weight

unit costs as weights

physical units as weights

all of above

Detailed SolutionIn stand-alone revenue-allocation method, type of weights available for this method is

35. What is a serious limitation of financial ratio?

Ratios are not predictive

Ratios indicate weakness only

Ratios can be used only by themselves

Ratios are screening devices

Detailed SolutionWhat is a serious limitation of financial ratio?

36. Life cycle costing

is sometimes used as a basis for cost planning and product pricing

includes only manufacturing costs incurred over the life of the product

includes only manufacturing cost, selling expenses and distribution expense

emphasises cost savings opportunities during the manufacturing cycle

Detailed SolutionLife cycle costing

37. Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called

conversion expense costing system

inventory costing system

process costing system

job costing system

Detailed SolutionCosting system, which classify cost into cost categories in a way when an expense is incurred in process is called

38. Cost accounting records both monetary and . . . . . . . . units.

physical

cost

Both A and B

None of these

Detailed SolutionCost accounting records both monetary and . . . . . . . . units.

39. Which of the following methods of stock valuation results in lower valuation of inventory and lower income when prices are rising:

FIFO Method

LIFO Method

Simple Average Method

Weighted Average Method

Detailed SolutionWhich of the following methods of stock valuation results in lower valuation of inventory and lower income when prices are rising:

40. Who proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?

Keith V. Smith

Miller and Orr

William J. Baumol

J. M. Keynes

Detailed SolutionWho proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?

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