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

41. Budgeted income statement and supporting budget schedules are categorized under

focused statement

slack statement

budgeted income statement

operating budget

Detailed SolutionBudgeted income statement and supporting budget schedules are categorized under

42. Idle time is ________.

time spent by workers in factory

time spent by workers in office

time spent by workers off their work

time spent by workers on their job

Detailed SolutionIdle time is ________.

43. In time wage system, wages are paid according to the . . . . . . . .

production

time

Both A and B

None of these

Detailed SolutionIn time wage system, wages are paid according to the . . . . . . . .

44. Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as

annual budget

operating budget

specific budget

master budget

Detailed SolutionBudget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as

45. An inflow of cash would result from which of the following?

The increase in an assets account other than cash

The decrease in an assets account other than cash

The decrease in an equity account

The decrease in a liability account

Detailed SolutionAn inflow of cash would result from which of the following?

46. “During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

Rs. 14

Rs. 1650

Rs. 1750

Rs. 18

Detailed Solution“During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

47. Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

times series method

time horizon method

aggression method

regression method

Detailed SolutionStatistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

48. Inventory turnover ratio = Cost of . . . . . . . . during the period Ã· Cost of average inventory held during the period.

inventory consumed

minimum inventory

maximum inventory

None of these

Detailed SolutionInventory turnover ratio = Cost of . . . . . . . . during the period Ã· Cost of average inventory held during the period.

49. If the selling price is fixed at 25% above the cost, the gross profit ratio is

13%

28%

26%

20%

Detailed SolutionIf the selling price is fixed at 25% above the cost, the gross profit ratio is

50. . . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

Opportunity

Incremental revenue

Alternative revenue

None of these

Detailed Solution. . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

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