[amp_mcq option1=”Rs. 4,98,750″ option2=”Rs. 7,50,000″ option3=”Rs. 5,25,000″ option4=”Rs. 7,12,500″ correct=”option1″]
Costing
42. The total of all direct expenses is known as . . . . . . . . cost.
[amp_mcq option1=”prime” option2=”works” option3=”production” option4=”Both A and B” correct=”option2″]
Detailed SolutionThe total of all direct expenses is known as . . . . . . . . cost.
43. Assertion (A) Break-even point can be determined both mathematically as well as graphically. Reason (R) When it is determined on a graph paper, the graph drawn is named as ‘break-even chart’.
[amp_mcq option1=”(A) is true, but (R) is false” option2=”(A) is false, but (R) is true” option3=”Both (A) and (R) are true and (R) is the correct explanation of (A)” option4=”Both (A) and (R) are true, but (R) is not the correct explanation of (A)” correct=”option4″]
44. Cost accounting provides data for managerial . . . . . . . .
[amp_mcq option1=”decision making” option2=”recruitment” option3=”retrenchment” option4=”None of the above” correct=”option1″]
Detailed SolutionCost accounting provides data for managerial . . . . . . . .
45. When actual loss is . . . . . . . . than the estimated loss, the difference between the two is considered to be abnormal loss.
[amp_mcq option1=”more” option2=”less” option3=”Both A and B” option4=”None of these” correct=”option1″]
46. Expenditure over and above prime cost is known as ________.
[amp_mcq option1=”overhead” option2=”factory cost” option3=”cost of sales” option4=”cost of production” correct=”option1″]
Detailed SolutionExpenditure over and above prime cost is known as ________.
47. Compelling strategic plan, promoting coordination and providing framework of performance are
[amp_mcq option1=”advantages of budget” option2=”disadvantages of budget” option3=”advantages of costing method” option4=”disadvantages of costing method” correct=”option1″]
48. Partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called
[amp_mcq option1=”spoilage” option2=”rework” option3=”scrap” option4=”equivalence” correct=”option3″]
49. Added value is the change in . . . . . . . .
[amp_mcq option1=”market value” option2=”cost” option3=”income” option4=”None of the above” correct=”option2″]
Detailed SolutionAdded value is the change in . . . . . . . .
50. Statement (A): It is necessary to tally current costs with current income in order to find out the correct profit. Reason (R): LIFO ensures matching of current costs with current income.
[amp_mcq option1=”Both A and R are correct and R is the correct explanation of A” option2=”Both A and R are correct but R is not the correct explanation of A” option3=”A is correct but R is incorrect” option4=”A is incorrect but R is correct” correct=”option1″]