Costing

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

carrying costs
purchasing costs
stock-out costs
ordering costs

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

planned schedule
cash budget
market budget
price schedule

Detailed SolutionSchedule of expected disbursements and cash receipts is considered as

43. The main objective of Cost Accounting is to

Maximise profits of the organisation
Determine the selling price of goods and services
Provide information to management for decision making
Help in valuation of inventory of finished goods

Detailed SolutionThe main objective of Cost Accounting is to

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

budgeted accounting
action accounting
planned accounting
responsibility accounting

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

LIFO
FIFO
Simple average method
None of the above

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

14
88
24
68

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

rework point
inspection point
spoilage point
scrap point

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:

Master budget
Zero base budget
(Functional budget
Flexible budget

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?

Equal
Comparative
Absolute
All of these

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?

Repayment of bank loan
Interest on debentures or dividend paid
Cash proceeds from public deposits
Sale of fixed assets

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

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