Costing

[amp_mcq option1=”focused statement” option2=”slack statement” option3=”budgeted income statement” option4=”operating budget” correct=”option4″]

Detailed SolutionBudgeted income statement and supporting budget schedules are categorized under

[amp_mcq option1=”time spent by workers in factory” option2=”time spent by workers in office” option3=”time spent by workers off their work” option4=”time spent by workers on their job” correct=”option4″]

Detailed SolutionIdle time is ________.

[amp_mcq option1=”production” option2=”time” option3=”Both A and B” option4=”None of these” correct=”option2″]

Detailed SolutionIn time wage system, wages are paid according to the . . . . . . . .

[amp_mcq option1=”annual budget” option2=”operating budget” option3=”specific budget” option4=”master budget” correct=”option1″]

Detailed SolutionBudget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as

[amp_mcq option1=”The increase in an assets account other than cash” option2=”The decrease in an assets account other than cash” option3=”The decrease in an equity account” option4=”The decrease in a liability account” correct=”option4″]

Detailed SolutionAn inflow of cash would result from which of the following?

[amp_mcq option1=”Rs. 14″ option2=”Rs. 1650″ option3=”Rs. 1750″ option4=”Rs. 18″ correct=”option1″]

Detailed Solution“During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

[amp_mcq option1=”times series method” option2=”time horizon method” option3=”aggression method” option4=”regression method” correct=”option4″]

Detailed SolutionStatistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

[amp_mcq option1=”inventory consumed” option2=”minimum inventory” option3=”maximum inventory” option4=”None of these” correct=”option1″]

Detailed SolutionInventory turnover ratio = Cost of . . . . . . . . during the period ÷ Cost of average inventory held during the period.

[amp_mcq option1=”13%” option2=”28%” option3=”26%” option4=”20%” correct=”option1″]

Detailed SolutionIf the selling price is fixed at 25% above the cost, the gross profit ratio is

[amp_mcq option1=”Opportunity” option2=”Incremental revenue” option3=”Alternative revenue” option4=”None of these” correct=”option1″]

Detailed Solution. . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.