Costing Archives

551. If difference between costs linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

$1,200

$1,400

$1,600

$1,800

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Answer is Wrong!

Detailed SolutionIf difference between costs

linked to highest and lowest observation of cost driver is $36000 and observation of cost driver is 30 machine hours, then slope coefficient would be

552. Liquid assets is determined by

Current assets - Stock - Prepaid expenses

Current assets + Stock + Prepaid expenses

Current assets + Prepaid expenses

None of the above

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553. Break-even point is also known as . . . . . . . . point.

total cost

total revenue

no profit no loss

contribution

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554. Match the items of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

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

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

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

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

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Detailed SolutionMatch the items

of List-I with the items of List-Il and indicate the correct answer. List-I List-II a. Debtors turnover ratio 1. Solvency ratio b. Proprietary ratio 2. Liquidity ratio c. Operating ratio 3. Activity ratio d. Acid test ratio 4. Profitability ratio

555. FIFO and LIFO are valuation method of-

Fixed assets

Investments

Raw material to be issued

All of these

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556. Budget which calculates expected revenues and expected costs, based on actual output quantity is named as

flexible budget

fixed budget

variable budget

multiplied budget

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Detailed SolutionBudget which calculates expected revenues

and expected costs, based on actual output quantity is named as

557. ________ is a preventive function.

Costreduction

Costcontrol

Costunit

Costcentre

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Detailed Solution________ is a preventive

function.

558. On what basis are the selling and distribution overheads absorbed?

Percentage on selling cost

Percentage on factory cost

Per unit rate

None of these

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576 512"> Subscribe on YouTube distribution overheads absorbed?" class="read-more button" href="https://exam.pscnotes.com/mcq/on-what-basis-are-the-selling-and-distribution-overheads-absorbed/#more-51693">Detailed Solution