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

41. An unfavourable material price variance occurs because of:

Price increase in raw materials

Price decrease in raw materials

Less than anticipated normal wastage in the manufacturing process

More than anticipated normal wastage in the manufacturing process

Detailed SolutionAn unfavourable material price variance occurs because of:

42. . . . . . . . . provides information for income determination.

Financial accounting

Cost accounting

Management accounting

None of these

Detailed Solution. . . . . . . . provides information for income determination.

43. Mr. Ram has to buy 4000 units. His annual consumption is 4000 units, order cost is Rs. 80 and maintenance cost in a year is Rs. 4. Economic order quantity will be

100 units

200 units

300 units

400 units

Detailed SolutionMr. Ram has to buy 4000 units. His annual consumption is 4000 units, order cost is Rs. 80 and maintenance cost in a year is Rs. 4. Economic order quantity will be

44. Labour productivity can NOT be measured by comparing ________.

actual time with standard time

total output with total man hours

added value for the product with total wage cost

total wage and total output

Detailed SolutionLabour productivity can NOT be measured by comparing ________.

45. In costing of project, wages paid to workers for unproductive work at time of material shortage is termed as

indirect wages

health wages

idle time wages

shortage time wages

Detailed SolutionIn costing of project, wages paid to workers for unproductive work at time of material shortage is termed as

46. Cost accounting is

Part of managerial accounting

Part of financial accounting

Part of liability accounting

None of these

Detailed SolutionCost accounting is

47. Second step in processing costing system is to

summarize total costs

compute cost for each equivalent unit

summarize flow of output

compute output in units

Detailed SolutionSecond step in processing costing system is to

48. Balance of abnormal gain a/c is transferred to ________.

balance sheet

debit side of profit and loss a/c

credit side of profit and loss a/c

costing profit and loss a/c

Detailed SolutionBalance of abnormal gain a/c is transferred to ________.

49. The total variable cost . . . . . . . . in total proportion to output.

increases

does not increase

decreases

None of these

Detailed SolutionThe total variable cost . . . . . . . . in total proportion to output.

50. First in first out method of valuing material issues is suitable in times of . . . . . . . .

rising prices

falling prices

fluctuating prices

None of these

Detailed SolutionFirst in first out method of valuing material issues is suitable in times of . . . . . . . .

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