Costing

41. Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._

Rowan plan allows more wages to a worker than Halsey plan
Rowan plan allows less wages to a worker than Halsey plan
Rowan and Halsey plan allow equal wages to a worker
Rowan plan and Halsey plan are equal to ordinary time wage

Detailed SolutionComparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._

42. Average unit cost for each process is calculated by dividing the . . . . . . . . by . . . . . . . .

Total cost, number of units
Total process cost, number of units in process
Total process cost, number of finished goods
Total cost, number of units produced

Detailed SolutionAverage unit cost for each process is calculated by dividing the . . . . . . . . by . . . . . . . .

43. Flexible budget variance for revenues of company is classified as

selling price variance
investment variance
profit variance
primary variance

Detailed SolutionFlexible budget variance for revenues of company is classified as

44. If prime cost is Rs. 20,000; factory overheads are 25% of prime cost and office overheads are 80% of factory overheads then the office cost would be

Rs. 25,000
Rs. 29,000
Rs. 36,000
Rs. 45,000

Detailed SolutionIf prime cost is Rs. 20,000; factory overheads are 25% of prime cost and office overheads are 80% of factory overheads then the office cost would be

45. From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000

60,000 units
88,000 units
98,000 units
1,00,000 units

Detailed SolutionFrom the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year. Sales price: Rs. 25 per unit Variable manufacturing costs: Rs. 12 per unit Variable selling costs: Rs. 3 per unit Fixed factory overheads: Rs. 5,00,000 Fixed selling costs: Rs. 3,00,000

46. Inventory turnover ratio is known as:

Cash ratio
Cost ratio
Stock velocity
Profit ratio

Detailed SolutionInventory turnover ratio is known as:

47. Which method of costing is best suited for interior decoration.

Contract accounting
Operating costing
Process costing
Job costing

Detailed SolutionWhich method of costing is best suited for interior decoration.

48. Match the items of List-I with List-II. List-I List-II a. Intangible assets 1. Ind AS 31 b. Impairment of assets 2. Ind AS 34 c. Interim financial reporting 3. Ind AS 36 d. Interests in joint ventures 4. Ind AS 38

a-1, b-2, c-3, d-4
a-4, b-3, c-2, d-1
a-4, b-1, c-2, d-3
a-4, b-2, c-1, d-3

Detailed SolutionMatch the items of List-I with List-II. List-I List-II a. Intangible assets 1. Ind AS 31 b. Impairment of assets 2. Ind AS 34 c. Interim financial reporting 3. Ind AS 36 d. Interests in joint ventures 4. Ind AS 38

49. In . . . . . . . ., two piece rates are set for each job.

Merrick's multiple piece rate system
Rowan's Premium Plan
Taylor's differential piece rate system
None of these

Detailed SolutionIn . . . . . . . ., two piece rates are set for each job.

50. Cost of production is equal to . . . . . . . .

works cost plus administration overheads
prime cost plus works cost
prime cost plus works overhead
works overhead plus administration overheads

Detailed SolutionCost of production is equal to . . . . . . . .

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