Costing

41. An unfavourable material price variance occurs because of:

Price increase in raw materials
Price decrease in raw materials
Less than anticipated normal wastage in the manufacturing process
More than anticipated normal wastage in the manufacturing process

Detailed SolutionAn unfavourable material price variance occurs because of:

42. . . . . . . . . provides information for income determination.

Financial accounting
Cost accounting
Management accounting
None of these

Detailed Solution. . . . . . . . provides information for income determination.

43. Mr. Ram has to buy 4000 units. His annual consumption is 4000 units, order cost is Rs. 80 and maintenance cost in a year is Rs. 4. Economic order quantity will be

100 units
200 units
300 units
400 units

Detailed SolutionMr. Ram has to buy 4000 units. His annual consumption is 4000 units, order cost is Rs. 80 and maintenance cost in a year is Rs. 4. Economic order quantity will be

44. Labour productivity can NOT be measured by comparing ________.

actual time with standard time
total output with total man hours
added value for the product with total wage cost
total wage and total output

Detailed SolutionLabour productivity can NOT be measured by comparing ________.

45. In costing of project, wages paid to workers for unproductive work at time of material shortage is termed as

indirect wages
health wages
idle time wages
shortage time wages

Detailed SolutionIn costing of project, wages paid to workers for unproductive work at time of material shortage is termed as

46. Cost accounting is

Part of managerial accounting
Part of financial accounting
Part of liability accounting
None of these

Detailed SolutionCost accounting is

47. Second step in processing costing system is to

summarize total costs
compute cost for each equivalent unit
summarize flow of output
compute output in units

Detailed SolutionSecond step in processing costing system is to

48. Balance of abnormal gain a/c is transferred to ________.

balance sheet
debit side of profit and loss a/c
credit side of profit and loss a/c
costing profit and loss a/c

Detailed SolutionBalance of abnormal gain a/c is transferred to ________.

49. The total variable cost . . . . . . . . in total proportion to output.

increases
does not increase
decreases
None of these

Detailed SolutionThe total variable cost . . . . . . . . in total proportion to output.

50. First in first out method of valuing material issues is suitable in times of . . . . . . . .

rising prices
falling prices
fluctuating prices
None of these

Detailed SolutionFirst in first out method of valuing material issues is suitable in times of . . . . . . . .

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