Costing

41. While calculating gross profit, if net profit is given, then,

It can be converted into gross profit by adding interest to it
It can be converted into gross profit by adding indirect expenses to it
Both A and B
None of the above

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

42. . . . . . . . . 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.

Job evaluation, merit rating
Job analysis, job evaluation
Job analysis, merit rating
None of these

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.

43. A process costing system is used by a company that

produces heterogeneous products
produces items by special request of customers
produces homogeneous products
accumulates costs by job

Detailed SolutionA process costing system is used by a company that

44. Fund flow refers to changes in

application
sources
both A and B
working capital

Detailed SolutionFund flow refers to changes in

45. Cost of abnormal wastage is:

Charged to the product cost
Charged to the profit & loss account
charged partly to the product and partly profit & loss account
not charged at all

Detailed SolutionCost of abnormal wastage is:

46. Activities related to coordinating, controlling and planning flow of inventory are classified as

decisional management
throughput management
inventory management
manufacturing management

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

47. If 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

$200
$190
$160
$180

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

48. Gross margin percentage in constant gross-margin percentage NRV method is based on

total labour costs
total production
total revenues
total costs

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

49. “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”

No saving
Rs. 2,00,000
Rs. 2,22,010
Rs. 2,990

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”

50. Last in first out method is suitable in times of . . . . . . . .

rising prices
falling prices
fluctuating prices
None of these

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

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