[amp_mcq option1=”$4,450″ option2=”$6,450″ option3=”$21,500″ option4=”$14,300″ correct=”option4″]
Costing
42. If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be
[amp_mcq option1=”$9,650″ option2=”$2,350″ option3=”$3,750″ option4=”$2,750″ correct=”option1″]
43. In labour oriented manufacturing industry which method of overhead absorption is suitable?
[amp_mcq option1=”Direct material cost method” option2=”Prime cost method” option3=”Labour hour method” option4=”Machine hour method” correct=”option3″]
44. An appropriate choice to invest in manpower or other resources is made through
[amp_mcq option1=”Human resource accounting” option2=”Creative accounting” option3=”Financial accounting” option4=”Cost accounting” correct=”option4″]
Detailed SolutionAn appropriate choice to invest in manpower or other resources is made through
45. Match the following. List-I List-II a. Marginal cost 1. . . . . . . . . = Contribution ÷ Sales b. P/V ratio 2. Contribution = Selling price – . . . . . . . . c. Profit 3. . . . . . . . . = Sales (1 – P/V ratio) d. Variable costs 4. Margin of safety = . . . . . . . . ÷ P/V ratio
[amp_mcq option1=”a-4, b-3, c-2, d-1″ option2=”a-3, b-1, c-4, d-2″ option3=”a-2, b-1, c-4, d-3″ option4=”a-2, b-3, c-4, d-1″ correct=”option3″]
46. In an accounting system, document which supports journal entries is classified as
[amp_mcq option1=”cost document” option2=”priced document” option3=”source document” option4=”direct document” correct=”option3″]
Detailed SolutionIn an accounting system, document which supports journal entries is classified as
47. Direct cost incurred can be identified with ________.
[amp_mcq option1=”each department” option2=”each unit of output” option3=”each month” option4=”each executive” correct=”option2″]
Detailed SolutionDirect cost incurred can be identified with ________.
48. Volume variance is divided into . . . . . . . .
[amp_mcq option1=”Capacity variance, calendar variance and expenditure variance” option2=”Capacity variance, calendar variance and efficiency variance” option3=”Capacity variance, expenditure variance and efficiency variance” option4=”Calendar variance, expenditure variance and efficiency variance” correct=”option3″]
Detailed SolutionVolume variance is divided into . . . . . . . .
49. The type of loss that should not affect cost of inventories is ________.
[amp_mcq option1=”normal loss” option2=”abnormal loss” option3=”seasonal loss” option4=”standard loss” correct=”option1″]
Detailed SolutionThe type of loss that should not affect cost of inventories is ________.
50. Which of the following is not true of the cash budget?
[amp_mcq option1=”The shortage or excess of cash would appear in a particular period” option2=”All inflows would arise before outflows for those periods” option3=”Only revenue nature cash flows are shown” option4=”Proceeds from issue of share capital is shown as an inflow” correct=”option2″]
Detailed SolutionWhich of the following is not true of the cash budget?