Costing

[amp_mcq option1=”Where the manager has the responsibility of generating and maximising profits” option2=”Which is concerned with earning an adequate Return on Investment” option3=”Both of the above” option4=”Which manages cost” correct=”option3″]

Detailed SolutionA profit centre is a centre ____________.

[amp_mcq option1=”Rs. 6,720″ option2=”Rs. 8400″ option3=”Rs. 10080″ option4=”Rs. 10500″ correct=”option3″]

Detailed SolutionCG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is

[amp_mcq option1=”flexible budget” option2=”total budget” option3=”master budget” option4=”zero base budget” correct=”option4″]

Detailed SolutionThe concept of budget that requires all levels to work from scratch is

[amp_mcq option1=”(1) only” option2=”(1) and (2) only” option3=”(2) only” option4=”(2) and (3) only” correct=”option2″]

Detailed SolutionState which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units

[amp_mcq option1=”direct labour costs” option2=”indirect labour costs” option3=”direct material costs” option4=”indirect material costs” correct=”option4″]

Detailed SolutionAn inward delivery charges and custom duties are classified as

[amp_mcq option1=”1000 units” option2=”6000 units” option3=”3000 units” option4=”7000 units” correct=”option3″]

Detailed Solution“Calculate re-order level from the following: Safety stock: 1000 units Consumption per week: 500 units It takes 12 weeks to reach material from the date of ordering”

[amp_mcq option1=”job, process” option2=”job, contract” option3=”batch, multiple” option4=”process, operation” correct=”option1″]

Detailed SolutionThe method of costing applied in biscuit industries is . . . . . . . . costing and in steel industry . . . . . . . . costing.

[amp_mcq option1=”112.34 per piece” option2=”113.33 per piece” option3=”111.34 per piece” option4=”110.34 per piece” correct=”option1″]

Detailed SolutionIf budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be

[amp_mcq option1=”simple regression” option2=”Two way regression” option3=”One variable series” option4=”multiple regression” correct=”option1″]

Detailed SolutionAn estimation of relationship between one independent variable and dependent variable is known as

[amp_mcq option1=”waste” option2=”scrap” option3=”defectives” option4=”spoilage” correct=”option1″]

Detailed SolutionDiscarded material substances having no value is called ________.