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Costing

41. Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as

[amp_mcq option1=”carrying costs” option2=”purchasing costs” option3=”stock-out costs” option4=”ordering costs” correct=”option1″]

Detailed SolutionCosts associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as

42. Schedule of expected disbursements and cash receipts is considered as

[amp_mcq option1=”planned schedule” option2=”cash budget” option3=”market budget” option4=”price schedule” correct=”option1″]

Detailed SolutionSchedule of expected disbursements and cash receipts is considered as

43. The main objective of Cost Accounting is to

[amp_mcq option1=”Maximise profits of the organisation” option2=”Determine the selling price of goods and services” option3=”Provide information to management for decision making” option4=”Help in valuation of inventory of finished goods” correct=”option1″]

Detailed SolutionThe main objective of Cost Accounting is to

44. System which measures budget, action and plan of each responsibility center is known as

[amp_mcq option1=”budgeted accounting” option2=”action accounting” option3=”planned accounting” option4=”responsibility accounting” correct=”option4″]

Detailed SolutionSystem which measures budget, action and plan of each responsibility center is known as

45. Under which method of inventory valuation at the time of value increasing/appreciation, current assets will be valued at lower value

[amp_mcq option1=”LIFO” option2=”FIFO” option3=”Simple average method” option4=”None of the above” correct=”option1″]

Detailed SolutionUnder which method of inventory valuation at the time of value increasing/appreciation, current assets will be valued at lower value

46. If residual error is 51 and predicted cost value is 37, then observed cost value will be

[amp_mcq option1=”14″ option2=”88″ option3=”24″ option4=”68″ correct=”option3″]

Detailed SolutionIf residual error is 51 and predicted cost value is 37, then observed cost value will be

47. Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as

[amp_mcq option1=”rework point” option2=”inspection point” option3=”spoilage point” option4=”scrap point” correct=”option2″]

Detailed SolutionStage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as

48. A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

[amp_mcq option1=”Master budget” option2=”Zero base budget” option3=”(Functional budget” option4=”Flexible budget” correct=”option4″]

Detailed SolutionA budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

49. Under which of the cost differences international trade would not take place?

[amp_mcq option1=”Equal” option2=”Comparative” option3=”Absolute” option4=”All of these” correct=”option4″]

Detailed SolutionUnder which of the cost differences international trade would not take place?

50. Which of the following is not an example of financing activities with reference to cash flow statement?

[amp_mcq option1=”Repayment of bank loan” option2=”Interest on debentures or dividend paid” option3=”Cash proceeds from public deposits” option4=”Sale of fixed assets” correct=”option4″]

Detailed SolutionWhich of the following is not an example of financing activities with reference to cash flow statement?

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