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

41. Sunk costs are . . . . . . . . for decision-making

irrelevant

relevant

useful

None of these

Detailed SolutionSunk costs are . . . . . . . . for decision-making

42. In proper capital budgeting analysis, we evaluate incremental

cash flow

accounting income

earnings

operating profit

Detailed SolutionIn proper capital budgeting analysis, we evaluate incremental

43. To decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon

units of labour

unit of production

time horizon

units of inventory

Detailed SolutionTo decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon

44. . . . . . . . . is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.

ABC Analysis

JIT Inventory System

VED Analysis

Perpetual Inventory System

Detailed Solution. . . . . . . . is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.

45. The budget which commonly takes the form of budgeted profit and loss account and balance sheet is:

cash budget

master budget

flexible budget

fixed budget

Detailed SolutionThe budget which commonly takes the form of budgeted profit and loss account and balance sheet is:

46. Equivalent units represent the production of a process in terms of . . . . . . . . units.

completed

total production

semi-finished

Both A and C

Detailed SolutionEquivalent units represent the production of a process in terms of . . . . . . . . units.

47. . . . . . . . . is the cost which involves payment to outsiders.

Out of pocket cost

Imputed cost

Notional cost

None of these

Detailed Solution. . . . . . . . is the cost which involves payment to outsiders.

48. The expenses which are incurred to increase the demand of the product are known as

Selling expenses

Distribution expenses

Both A and B

Neither A nor B

Detailed SolutionThe expenses which are incurred to increase the demand of the product are known as

49. In specification analysis, assumptions related to linearity states but linearity must be within

irrelevant range

relevant range

significant range

insignificant range

Detailed SolutionIn specification analysis, assumptions related to linearity states but linearity must be within

50. Cost, which is related to specific cost object and economically traceable, will be classified as

direct cost

indirect cost

line cost

staff cost

Detailed SolutionCost, which is related to specific cost object and economically traceable, will be classified as

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