Costing

41. The physical distance covered by a vehicle is measured in terms of ________.

ton kilometers
passenger kilometers
vehicle days
running kilometers or miles

Detailed SolutionThe physical distance covered by a vehicle is measured in terms of ________.

42. An estimated price, which is expected to be paid by customers for particular market offering is classified as

target price
target cost
outsource price
offshore price

Detailed SolutionAn estimated price, which is expected to be paid by customers for particular market offering is classified as

43. When actual loss is . . . . . . . . than the estimated loss, the difference between the two is considered to be abnormal gain.

more
less
higher
None of these

Detailed SolutionWhen actual loss is . . . . . . . . than the estimated loss, the difference between the two is considered to be abnormal gain.

44. Direct manufacturing labour costs is added into manufacturing overhead cost to calculate

transaction costs
conversion costs
resale costs
merchandise costs

Detailed SolutionDirect manufacturing labour costs is added into manufacturing overhead cost to calculate

45. Which of the following ratios are taken into consideration by a banker before sanctioning the loan?

Proprietors ratio
Stock-turnover ratio
Debt-equity ratio
All of the above

Detailed SolutionWhich of the following ratios are taken into consideration by a banker before sanctioning the loan?

46. The test of objectivity and verifiability is satisfied by valuing inventory at:

Historical cost
Current replacement value
Net realisable value
Inflated value

Detailed SolutionThe test of objectivity and verifiability is satisfied by valuing inventory at:

47. Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as

priced costing
actual costing
direct costing
indirect costing

Detailed SolutionCosting technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as

48. Telephone expense is . . . . . . . . expense.

variable
semi-variable
fixed
None of these

Detailed SolutionTelephone expense is . . . . . . . . expense.

49. If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be

$97,000
$87,000
$27,000
$37,000

Detailed SolutionIf flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be

50. An error term, disturbance term or residual term is calculated as

U=A-b
u=A-a
u=Y-y
u=X-x

Detailed SolutionAn error term, disturbance term or residual term is calculated as

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