[amp_mcq option1=”separable costs” option2=”joint costs” option3=”main costs” option4=”split off costs” correct=”option2″]
Costing
42. Fixed cost . . . . . . . . in the same proportion in which output changes.
[amp_mcq option1=”does not change” option2=”changes” option3=”increases” option4=”None of these” correct=”option1″]
Detailed SolutionFixed cost . . . . . . . . in the same proportion in which output changes.
43. Primary packing is an item of . . . . . . . .
[amp_mcq option1=”selling overheads” option2=”prime cost” option3=”distribution overheads” option4=”factory overheads” correct=”option2″]
Detailed SolutionPrimary packing is an item of . . . . . . . .
44. An item of cost that is direct for one business may be . . . . . . . . for another business.
[amp_mcq option1=”important” option2=”direct” option3=”indirect” option4=”None of the above” correct=”option3″]
45. When factory overhead control account has an ending debit balance, factory overhead was . . . . . . . .
[amp_mcq option1=”over applied” option2=”under applied” option3=”Both A and B” option4=”None of these” correct=”option2″]
46. The following items are included in the distribution cost
[amp_mcq option1=”Advertisement” option2=”Dispatch clerk salary” option3=”Tender preparation cost” option4=”Sales manager salary” correct=”option1″]
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?
[amp_mcq option1=”9470 units” option2=”9487 units” option3=”9480 units” option4=”9840 units” correct=”option3″]
48. Manager who is responsible for investments of company, its costs and revenues is known as
[amp_mcq option1=”profit center” option2=”investment center” option3=”cost center” option4=”revenue center” correct=”option2″]
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
[amp_mcq option1=”manufacturing analysis method” option2=”price analysis method” option3=”unit analysis method” option4=”account analysis method” correct=”option4″]
50. Working capital requirement of a sugar mill is assessed as per
[amp_mcq option1=”traditional method of lending” option2=”turnover method” option3=”cash budget method” option4=”None of the above” correct=”option3″]
Detailed SolutionWorking capital requirement of a sugar mill is assessed as per