Costing Archives

521. Which of the following is usually NOT a right enjoyed by a Principal in the contract of Agency?

Right to revoke the agency

Right to charge abnormal fee for the agency

Right to repudiate the agency

Right to recover the secret profits from the agent E. Right to enter into a contract

href="https://exam.pscnotes.com/mcq/which-of-the-following-is-usually-not-a-right-enjoyed-by-a-principal-in-the-contract-of-agency/#more-52402">Detailed Solution

522. In process costing, the abnormal loss is treated as . . . . . . . . cost and written off to profit & loss account.

unit

period

future

process

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loss account." class="read-more button" href="https://exam.pscnotes.com/mcq/in-process-costing-the-abnormal-loss-is-treated-as-cost-and-written-off-to-profit-loss-account/#more-52391">Detailed Solution

523. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

Capital cost of a new collection vehicle

Depreciation of the machinery

Operatives wages

Fuel for the collection Vehicles

Detailed SolutionA Local Authority is

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preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?

524. What-if technique, which examines changes in results if original prediction would not be achieved is called

change analysis

original analysis

sensitivity analysis

predicted analysis

Detailed SolutionWhat-if technique, which examines

changes in results if original prediction would not be achieved is called

525. Batch costing is useful to determine ________.

maximum quantity of output

minimum quantity of output

economic batch quantity

profit of batches

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________." class="read-more button" href="https://exam.pscnotes.com/mcq/batch-costing-is-useful-to-determine-________/#more-52386">Detailed Solution

526. Match the items of List-I with the items of List-II and indicate the correct answer. List-I List-II a. Absolute cost advantage theory 1. The empirical evidence based on US export of labour-intensive goods challenging the factor endowment theory. b. Comparative cost advantage theory 2. A country with a direct cost advantage in the production of a product on account of greater efficiency. c. Factor endowment theory 3. A country should produce and export a commodity that primarily involves a factor of production in abundance within the country. d. Leontief paradox 4. A country should specialize in the production and export of a commodity in which it possesses the greatest relative advantage.

a-2, b-4, c-3, d-1

a-2, b-4, c-1, d-3

a-2, b-1, c-3, d-4

a-1, b-4, c-3, d-2

Detailed SolutionMatch the items of List-I with the items of List-II and indicate the correct answer. List-I List-II a. Absolute cost advantage theory

1. The empirical evidence based on US export of labour-intensive goods challenging the factor endowment theory. b. Comparative cost advantage theory 2. A country with a direct cost advantage in the production of a product on account of greater efficiency. c. Factor endowment theory 3. A country should produce and export a commodity that primarily involves a factor of production in abundance within the country. d. Leontief paradox 4. A country should specialize in the production and export of a commodity in which it possesses the greatest relative advantage.

527. If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be

$27,000

$15,000

$39,000

$49,000

Detailed

Solution

528. . . . . . . . . does not form part of production.

Abnormal waste

Normal waste

Both A and B

None of these

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11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube form part of production." class="read-more button" href="https://exam.pscnotes.com/mcq/does-not-form-part-of-production/#more-52280">Detailed Solution

529. Cost that is not affected by changes in the volume of production

Total cost

Fixed cost

Variable cost

Opportunity cost

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11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube volume of production" class="read-more button" href="https://exam.pscnotes.com/mcq/cost-that-is-not-affected-by-changes-in-the-volume-of-production/#more-52241">Detailed Solution

530. Total cost of producing similar products divided by number of units produced is a technique known as

sale costing system

job costing system

price costing system

process costing system

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24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube produced is a technique known as" class="read-more button" href="https://exam.pscnotes.com/mcq/total-cost-of-producing-similar-products-divided-by-number-of-units-produced-is-a-technique-known-as/#more-52227">Detailed Solution

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