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

41. The physical distance covered by a vehicle is measured in terms of ________.

ton kilometers

passenger kilometers

vehicle days

running kilometers or miles

Detailed SolutionThe physical distance covered by a vehicle is measured in terms of ________.

42. An estimated price, which is expected to be paid by customers for particular market offering is classified as

target price

target cost

outsource price

offshore price

Detailed SolutionAn estimated price, which is expected to be paid by customers for particular market offering is classified as

43. When actual loss is . . . . . . . . than the estimated loss, the difference between the two is considered to be abnormal gain.

more

less

higher

None of these

Detailed SolutionWhen actual loss is . . . . . . . . than the estimated loss, the difference between the two is considered to be abnormal gain.

44. Direct manufacturing labour costs is added into manufacturing overhead cost to calculate

transaction costs

conversion costs

resale costs

merchandise costs

Detailed SolutionDirect manufacturing labour costs is added into manufacturing overhead cost to calculate

45. Which of the following ratios are taken into consideration by a banker before sanctioning the loan?

Proprietors ratio

Stock-turnover ratio

Debt-equity ratio

All of the above

Detailed SolutionWhich of the following ratios are taken into consideration by a banker before sanctioning the loan?

46. The test of objectivity and verifiability is satisfied by valuing inventory at:

Historical cost

Current replacement value

Net realisable value

Inflated value

Detailed SolutionThe test of objectivity and verifiability is satisfied by valuing inventory at:

47. Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as

priced costing

actual costing

direct costing

indirect costing

Detailed SolutionCosting technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as

48. Telephone expense is . . . . . . . . expense.

variable

semi-variable

fixed

None of these

Detailed SolutionTelephone expense is . . . . . . . . expense.

49. If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be

$97,000

$87,000

$27,000

$37,000

Detailed SolutionIf flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be

50. An error term, disturbance term or residual term is calculated as

U=A-b

u=A-a

u=Y-y

u=X-x

Detailed SolutionAn error term, disturbance term or residual term is calculated as

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