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

41. Third step in developing operating budget is

analysis of batches

analysis of batches

analysis of products

making predictions about future

Detailed SolutionThird step in developing operating budget is

42. Cost accounting disclose . . . . . . . .

the financial position

profit/loss of a product, job or service

effect and impact of cost on business

None of these

Detailed SolutionCost accounting disclose . . . . . . . .

43. What is the gearing ratio if debt is Rs. 220, cash balance is Rs. 20, and equity is Rs. 300?

20%

40%

50%

30%

Detailed SolutionWhat is the gearing ratio if debt is Rs. 220, cash balance is Rs. 20, and equity is Rs. 300?

44. Determine the operating ratio if operating expenses is Rs. 60,000; sales is Rs. 9,40,000; sales return is Rs. 40,000; and cost of net goods sold is Rs. 6,60,000.

80%

15%

25%

11%

Detailed SolutionDetermine the operating ratio if operating expenses is Rs. 60,000; sales is Rs. 9,40,000; sales return is Rs. 40,000; and cost of net goods sold is Rs. 6,60,000.

45. The cost of . . . . . . . . process loss is absorbed in the cost of production of good units.

abnormal

normal

Both A and B

None of these

Detailed SolutionThe cost of . . . . . . . . process loss is absorbed in the cost of production of good units.

46. Direct material costs are added into direct manufacturing costs to calculate

discuss costs

prime costs

resale cost

merchandise costs

Detailed SolutionDirect material costs are added into direct manufacturing costs to calculate

47. Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called

partial work costs

transferred-in costs

transferred-out costs

weighted average costs

Detailed SolutionCosts that are incurred in last department, where product has been processed and will be carried to next department for further processing are called

48. Under marginal costing, only . . . . . . . . costs are charged to products.

fixed

variable

Both A and B

None of these

Detailed SolutionUnder marginal costing, only . . . . . . . . costs are charged to products.

49. Which of the following would increase the cash flow of a firm?

A decrease in inventory

An increase in debtors

An increase in the prepaid expenses

A decrease in income in advance

Detailed SolutionWhich of the following would increase the cash flow of a firm?

50. Period costing means

Prime cost

Fixed cost

Variable cost

Semi-variable cost

Detailed SolutionPeriod costing means

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