Costing

[amp_mcq option1=”It can be converted into gross profit by adding interest to it” option2=”It can be converted into gross profit by adding indirect expenses to it” option3=”Both A and B” option4=”None of the above” correct=”option4″]

Detailed SolutionWhile calculating gross profit, if net profit is given, then,

[amp_mcq option1=”Job evaluation, merit rating” option2=”Job analysis, job evaluation” option3=”Job analysis, merit rating” option4=”None of these” correct=”option2″]

Detailed Solution. . . . . . . . is the assessment of the relative worth of jobs within a company whereas . . . . . . . . is the assessment of the relative worth of man behind the job.

[amp_mcq option1=”produces heterogeneous products” option2=”produces items by special request of customers” option3=”produces homogeneous products” option4=”accumulates costs by job” correct=”option3″]

Detailed SolutionA process costing system is used by a company that

[amp_mcq option1=”application” option2=”sources” option3=”both A and B” option4=”working capital” correct=”option3″]

Detailed SolutionFund flow refers to changes in

[amp_mcq option1=”Charged to the product cost” option2=”Charged to the profit & loss account” option3=”charged partly to the product and partly profit & loss account” option4=”not charged at all” correct=”option1″]

Detailed SolutionCost of abnormal wastage is:

[amp_mcq option1=”decisional management” option2=”throughput management” option3=”inventory management” option4=”manufacturing management” correct=”option3″]

Detailed SolutionActivities related to coordinating, controlling and planning flow of inventory are classified as

[amp_mcq option1=”$200″ option2=”$190″ option3=”$160″ option4=”$180″ correct=”option1″]

Detailed SolutionIf demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be

[amp_mcq option1=”total labour costs” option2=”total production” option3=”total revenues” option4=”total costs” correct=”option3″]

Detailed SolutionGross margin percentage in constant gross-margin percentage NRV method is based on

[amp_mcq option1=”No saving” option2=”Rs. 2,00,000″ option3=”Rs. 2,22,010″ option4=”Rs. 2,990″ correct=”option4″]

Detailed Solution“From the following information, calculate the extra cost of material by following EOQ: Annual consumption = 45000 units Ordering cost per order = Rs 10 Carrying cost per unit per annum = Rs 10 Purchase price per unit = Rs 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk”

[amp_mcq option1=”rising prices” option2=”falling prices” option3=”fluctuating prices” option4=”None of these” correct=”option1″]

Detailed SolutionLast in first out method is suitable in times of . . . . . . . .