Costing

41. Direct service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be

$4,450
$6,450
$21,500
$14,300

Detailed SolutionDirect service labour is $5000, idle time wages are $1000 and overtime premium is $450, then total figure would be

42. If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be

$9,650
$2,350
$3,750
$2,750

Detailed SolutionIf relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be

43. In labour oriented manufacturing industry which method of overhead absorption is suitable?

Direct material cost method
Prime cost method
Labour hour method
Machine hour method

Detailed SolutionIn labour oriented manufacturing industry which method of overhead absorption is suitable?

44. An appropriate choice to invest in manpower or other resources is made through

Human resource accounting
Creative accounting
Financial accounting
Cost accounting

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

a-4, b-3, c-2, d-1
a-3, b-1, c-4, d-2
a-2, b-1, c-4, d-3
a-2, b-3, c-4, d-1

Detailed SolutionMatch 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

46. In an accounting system, document which supports journal entries is classified as

cost document
priced document
source document
direct document

Detailed SolutionIn an accounting system, document which supports journal entries is classified as

47. Direct cost incurred can be identified with ________.

each department
each unit of output
each month
each executive

Detailed SolutionDirect cost incurred can be identified with ________.

48. Volume variance is divided into . . . . . . . .

Capacity variance, calendar variance and expenditure variance
Capacity variance, calendar variance and efficiency variance
Capacity variance, expenditure variance and efficiency variance
Calendar variance, expenditure variance and efficiency variance

Detailed SolutionVolume variance is divided into . . . . . . . .

49. The type of loss that should not affect cost of inventories is ________.

normal loss
abnormal loss
seasonal loss
standard loss

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?

The shortage or excess of cash would appear in a particular period
All inflows would arise before outflows for those periods
Only revenue nature cash flows are shown
Proceeds from issue of share capital is shown as an inflow

Detailed SolutionWhich of the following is not true of the cash budget?

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