Costing Archives - Page 5 of 116 - MCQ and Quiz for Exams

41. While calculating gross profit, if net profit is given, then,

It can be converted into gross profit by adding interest to it

It can be converted into gross profit by adding indirect expenses to it

Both A and B

None of the above

Detailed SolutionWhile calculating gross profit, if net profit is given, then,

42. . . . . . . . . is the assessment of the relative worth of jobs within a company whereas . . . . . . . . is the assessment of the relative worth of man behind the job.

Job evaluation, merit rating

Job analysis, job evaluation

Job analysis, merit rating

None of these

Detailed Solution. . . . . . . . is the assessment of the relative worth of jobs within a company whereas . . . . . . . . is the assessment of the relative worth of man behind the job.

43. A process costing system is used by a company that

produces heterogeneous products

produces items by special request of customers

produces homogeneous products

accumulates costs by job

Detailed SolutionA process costing system is used by a company that

44. Fund flow refers to changes in

application

sources

both A and B

working capital

Detailed SolutionFund flow refers to changes in

45. Cost of abnormal wastage is:

Charged to the product cost

Charged to the profit & loss account

charged partly to the product and partly profit & loss account

not charged at all

Detailed SolutionCost of abnormal wastage is:

46. Activities related to coordinating, controlling and planning flow of inventory are classified as

decisional management

throughput management

inventory management

manufacturing management

Detailed SolutionActivities related to coordinating, controlling and planning flow of inventory are classified as

47. If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be

$200

$190

$160

$180

Detailed SolutionIf demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be

48. Gross margin percentage in constant gross-margin percentage NRV method is based on

total labour costs

total production

total revenues

total costs

Detailed SolutionGross margin percentage in constant gross-margin percentage NRV method is based on

49. “From the following information, calculate the extra cost of material by following EOQ: Annual consumption = 45000 units Ordering cost per order = Rs 10 Carrying cost per unit per annum = Rs 10 Purchase price per unit = Rs 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk”

No saving

Rs. 2,00,000

Rs. 2,22,010

Rs. 2,990

Detailed Solution“From the following information, calculate the extra cost of material by following EOQ: Annual consumption = 45000 units Ordering cost per order = Rs 10 Carrying cost per unit per annum = Rs 10 Purchase price per unit = Rs 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk”

50. Last in first out method is suitable in times of . . . . . . . .

rising prices

falling prices

fluctuating prices

None of these

Detailed SolutionLast in first out method is suitable in times of . . . . . . . .

Page 1 Page 2 Page 3 Page 4 Page 5

Test 1 Test 2 Test 3 Test 4 Test 5 Test 6 Test 7 Test 8 Test 9 Test 10 Test 11 Test 12 Test 13 Test 14 Test 15 Test 16 Test 17 Test 18 Test 19 Test 20 Test 21 Test 22 Test 23 Test 24

Exit mobile version