Costing

41. Sunk costs are . . . . . . . . for decision-making

irrelevant
relevant
useful
None of these

Detailed SolutionSunk costs are . . . . . . . . for decision-making

42. In proper capital budgeting analysis, we evaluate incremental

cash flow
accounting income
earnings
operating profit

Detailed SolutionIn proper capital budgeting analysis, we evaluate incremental

43. To decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon

units of labour
unit of production
time horizon
units of inventory

Detailed SolutionTo decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon

44. . . . . . . . . is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.

ABC Analysis
JIT Inventory System
VED Analysis
Perpetual Inventory System

Detailed Solution. . . . . . . . is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.

45. The budget which commonly takes the form of budgeted profit and loss account and balance sheet is:

cash budget
master budget
flexible budget
fixed budget

Detailed SolutionThe budget which commonly takes the form of budgeted profit and loss account and balance sheet is:

46. Equivalent units represent the production of a process in terms of . . . . . . . . units.

completed
total production
semi-finished
Both A and C

Detailed SolutionEquivalent units represent the production of a process in terms of . . . . . . . . units.

47. . . . . . . . . is the cost which involves payment to outsiders.

Out of pocket cost
Imputed cost
Notional cost
None of these

Detailed Solution. . . . . . . . is the cost which involves payment to outsiders.

48. The expenses which are incurred to increase the demand of the product are known as

Selling expenses
Distribution expenses
Both A and B
Neither A nor B

Detailed SolutionThe expenses which are incurred to increase the demand of the product are known as

49. In specification analysis, assumptions related to linearity states but linearity must be within

irrelevant range
relevant range
significant range
insignificant range

Detailed SolutionIn specification analysis, assumptions related to linearity states but linearity must be within

50. Cost, which is related to specific cost object and economically traceable, will be classified as

direct cost
indirect cost
line cost
staff cost

Detailed SolutionCost, which is related to specific cost object and economically traceable, will be classified as

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