Costing

[amp_mcq option1=”Rowan plan allows more wages to a worker than Halsey plan” option2=”Rowan plan allows less wages to a worker than Halsey plan” option3=”Rowan and Halsey plan allow equal wages to a worker” option4=”Rowan plan and Halsey plan are equal to ordinary time wage” correct=”option1″]

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

[amp_mcq option1=”Total cost, number of units” option2=”Total process cost, number of units in process” option3=”Total process cost, number of finished goods” option4=”Total cost, number of units produced” correct=”option4″]

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

[amp_mcq option1=”selling price variance” option2=”investment variance” option3=”profit variance” option4=”primary variance” correct=”option1″]

Detailed SolutionFlexible budget variance for revenues of company is classified as

[amp_mcq option1=”Rs. 25,000″ option2=”Rs. 29,000″ option3=”Rs. 36,000″ option4=”Rs. 45,000″ correct=”option3″]

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

[amp_mcq option1=”60,000 units” option2=”88,000 units” option3=”98,000 units” option4=”1,00,000 units” correct=”option3″]

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

[amp_mcq option1=”Cash ratio” option2=”Cost ratio” option3=”Stock velocity” option4=”Profit ratio” correct=”option3″]

Detailed SolutionInventory turnover ratio is known as:

[amp_mcq option1=”Contract accounting” option2=”Operating costing” option3=”Process costing” option4=”Job costing” correct=”option4″]

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

[amp_mcq option1=”a-1, b-2, c-3, d-4″ option2=”a-4, b-3, c-2, d-1″ option3=”a-4, b-1, c-2, d-3″ option4=”a-4, b-2, c-1, d-3″ correct=”option1″]

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

[amp_mcq option1=”Merrick’s multiple piece rate system” option2=”Rowan’s Premium Plan” option3=”Taylor’s differential piece rate system” option4=”None of these” correct=”option1″]

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

[amp_mcq option1=”works cost plus administration overheads” option2=”prime cost plus works cost” option3=”prime cost plus works overhead” option4=”works overhead plus administration overheads” correct=”option2″]

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