The budget that is prepared first of all is . . . . . . . .
A. cash budget
B. master budget
C. budget for the key factor
D. sales budget
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What is the ideal quick ratio?
A. 1 : 1
B. 2 : 1
C. 3 : 1
D. 4 : 1
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In electricity supply company uses . . . . . . . . as cost unit.
A. kilo watt hour
B. per household
C. voltage
D. None of these
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Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?
A. Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period
B. Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period
C. Creditor payment period, Raw material conversion period, Receivables conversion period, work-in-progress conversion
D. Raw material conversion period, Finished goods conversion period, work-in-progress conversion period, Receivables conversion period
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From the following two statements of Assertion (A) and Reason (R) . Indicate the correct option.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.
A. Both (A) and (R) are correct
B. (A) is correct, but (R) is not correct
C. (A) is not correct, but (R) is correct
D. Both (A) and (R) are incorrect
Select an option to see the answer and solution.
Which of the following is not true of the cash budget?
A. The shortage or excess of cash would appear in a particular period
B. All inflows would arise before outflows for those periods
C. Only revenue nature cash flows are shown
D. Proceeds from issue of share capital is shown as an inflow
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Match the
List-I with the items of
List-II relating to human resource planning activities, and indicate the correct matching.
List-I
List-II
a. Forecasting
1. Optimal employment
b. Inventorying
2. Development activities
c. Anticipating manpower problems
3. Mathematical projections of industrial trend
d. Planning programmes
4. Projecting present resources into future
A. a-2, b-1, c-4, d-3
B. a-1, b-4, c-3, d-2
C. a-4, b-2, c-1, d-3
D. a-3, b-1, c-4, d-2
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At what value is the closing stock valued
Or
Stock is valued on
A. Cost price
B. Market value
C. Cost price or market price, whichever is less
D. Cost price or market price, whichever is higher
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Assertion (A) Break-even point can be determined both mathematically as well as graphically.
Reason (R) When it is determined on a graph paper, the graph drawn is named as 'break-even chart'.
A. (A) is true, but (R) is false
B. (A) is false, but (R) is true
C. Both (A) and (R) are true and (R) is the correct explanation of (A)
D. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
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Which of the following statements is true about estimated costs and standard costs?
A. Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis
B. Standard cost emphasis is on 'what cost will be', while estimated cost emphasis is on 'what cost should be'
C. Standard costs are frequently revised compared to the estimated cost
D. Estimated costs are stable than standard costs
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. . . . . . . . cost is irrecoverable cost.
A. Marginal
B. Out of pocket
C. Sunk
D. None of these
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. . . . . . . . includes financial and cost accounting, tax planning and tax accounting.
A. Financial accounting
B. Cost accounting
C. Management accounting
D. None of these
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The cost formula acceptable under AS-2 for inventory valuation is
A. FIFO
B. LIFO
C. HIFO
D. Normal average
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The sum of value of work certified and uncertified appearing in the Contract Account is called . . . . . . . .
A. Work in Progress
B. Work in Process
C. Work Completed
D. Work Done
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A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are . . . . . . . .
A. 30,000
B. 12,500
C. 20,000
D. 25,000
Select an option to see the answer and solution.
Which of the following is an investing activity?
A. Cash inflow from interest income
B. Cash inflow from dividend income
C. Cash outflow to acquire fixed assets
D. All of the above
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. . . . . . . . is used primarily for control of spare parts.
A. ABC Analysis
B. JIT Inventory System
C. VED Analysis
D. Perpetual Inventory System
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Inflated price method of valuing material issues is suitable when . . . . . . . .
A. materials are subject to natural wastage
B. prices rise
C. prices fall
D. None of these
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The main objective of Cost Accounting is to
A. Maximise profits of the organisation
B. Determine the selling price of goods and services
C. Provide information to management for decision making
D. Help in valuation of inventory of finished goods
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The process costing is not used in one of the following:
A. chemical
B. textiles
C. cement
D. oil refining
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