Costing

41. Budgeted income statement and supporting budget schedules are categorized under

focused statement
slack statement
budgeted income statement
operating budget

Detailed SolutionBudgeted income statement and supporting budget schedules are categorized under

42. Idle time is ________.

time spent by workers in factory
time spent by workers in office
time spent by workers off their work
time spent by workers on their job

Detailed SolutionIdle time is ________.

43. In time wage system, wages are paid according to the . . . . . . . .

production
time
Both A and B
None of these

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

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

annual budget
operating budget
specific budget
master budget

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

45. An inflow of cash would result from which of the following?

The increase in an assets account other than cash
The decrease in an assets account other than cash
The decrease in an equity account
The decrease in a liability account

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

46. “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?”

Rs. 14
Rs. 1650
Rs. 1750
Rs. 18

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?”

47. Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

times series method
time horizon method
aggression method
regression method

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

48. Inventory turnover ratio = Cost of . . . . . . . . during the period ÷ Cost of average inventory held during the period.

inventory consumed
minimum inventory
maximum inventory
None of these

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

49. If the selling price is fixed at 25% above the cost, the gross profit ratio is

13%
28%
26%
20%

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

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

Opportunity
Incremental revenue
Alternative revenue
None of these

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

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