Costing

41. Costs incurred in production process that yield range of products simultaneously are known as

separable costs
joint costs
main costs
split off costs

Detailed SolutionCosts incurred in production process that yield range of products simultaneously are known as

42. Fixed cost . . . . . . . . in the same proportion in which output changes.

does not change
changes
increases
None of these

Detailed SolutionFixed cost . . . . . . . . in the same proportion in which output changes.

43. Primary packing is an item of . . . . . . . .

selling overheads
prime cost
distribution overheads
factory overheads

Detailed SolutionPrimary packing is an item of . . . . . . . .

44. An item of cost that is direct for one business may be . . . . . . . . for another business.

important
direct
indirect
None of the above

Detailed SolutionAn item of cost that is direct for one business may be . . . . . . . . for another business.

45. When factory overhead control account has an ending debit balance, factory overhead was . . . . . . . .

over applied
under applied
Both A and B
None of these

Detailed SolutionWhen factory overhead control account has an ending debit balance, factory overhead was . . . . . . . .

46. The following items are included in the distribution cost

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Dispatch clerk salary
Tender preparation cost
Sales manager salary

Detailed SolutionThe following items are included in the distribution cost

47. A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

9470 units
9487 units
9480 units
9840 units

Detailed SolutionA firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

48. Manager who is responsible for investments of company, its costs and revenues is known as

profit center
investment center
cost center
revenue center

Detailed SolutionManager who is responsible for investments of company, its costs and revenues is known as

49. An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as

manufacturing analysis method
price analysis method
unit analysis method
account analysis method

Detailed SolutionAn analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as

50. Working capital requirement of a sugar mill is assessed as per

traditional method of lending
turnover method
cash budget method
None of the above

Detailed SolutionWorking capital requirement of a sugar mill is assessed as per

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