Match the following.
List-I List-II
a. Leverage ratio
1. Short-term solvency
b. Liquidity ratio
2. Earning capacity
c. Turnover ratio
3. Relationship between debt and equity
d. Profitability ratio
4. Efficiency of asset management
A. a-2, b-1, c-4, d-3
B. a-3, b-2, c-1, d-4
C. a-4, b-3, c-1, d-2
D. a-3, b-1, c-4, d-2
Select an option to see the answer and solution.
Service costing is used in industries producing . . . . . . . .
A. products
B. service
C. Both A and B
D. None of these
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A company buys 8000 units of an item for its annual requirement. Each unit costs Rs. 10, the ordering cost per order is Rs. 30 and the carrying cost is 7.5% of the average inventory per year. The economic order quantity will be
A. 566 units
B. 800 units
C. 2530 units
D. 900 units
Select an option to see the answer and solution.
Calendar Ratio =
A. Number of working days in the budget period Number of actual working days in a period × 100
B. Budgeted hours Actual hours worked × 100
C. Actual hours worked Standard hours for actual production × 100
D. Budgeted standard hours Standard hours for actual production × 100
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Inventory turnover ratio is known as:
A. Cash ratio
B. Cost ratio
C. Stock velocity
D. Profit ratio
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Life cycle costing
A. is sometimes used as a basis for cost planning and product pricing
B. includes only manufacturing costs incurred over the life of the product
C. includes only manufacturing cost, selling expenses and distribution expense
D. emphasises cost savings opportunities during the manufacturing cycle
Select an option to see the answer and solution.
Contribution less fixed cost is
A. Profit
B. Sales
C. Price
D. MOS
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If the prime cost is Rs. 50,000 and factory cost will Rs. 70,000 and office overhead is 50% of factory overhead, then the production cost will be
A. 155,000
B. 105,000
C. 85,000
D. 80,000
Select an option to see the answer and solution.
. . . . . . . . determines the priorities of functional budget.
A. Principal Budget Factor
B. Limiting Factor
C. Both A and B
D. None of the above
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When actual loss is less than the estimated loss, the difference between the two is considered to be . . . . . . . .
A. abnormal gain
B. abnormal loss
C. normal loss
D. income
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An item of cost that is direct for one business may be . . . . . . . . for another business.
A. important
B. direct
C. indirect
D. None of the above
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An opportunity cost does not involve . . . . . . . .
A. cash outlays
B. direct cost
C. indirect cost
D. None of the above
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What is the amount of gross profit if the stock turnover ratio is 6 times; average stock is Rs. 8,000 and; selling price is 25% above cost?
A. Rs. 2,000
B. Rs. 4,000
C. Rs. 10,000
D. Rs. 12,000
Select an option to see the answer and solution.
Under piece rate system of wage payment, payment is made according to the . . . . . . . .
A. quantity of work done
B. time
C. Both A and B
D. None of these
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The requirements of a particular job are known as . . . . . . . .
A. job description
B. job specifications
C. job evaluation
D. Both A and B
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Total Material cost variance =
A. Standard cost of materials - actual cost of materials
B. Budgeted cost of materials - actual cost of materials
C. Standard cost of materials - budgeted cost of materials
D. Actual cost of materials - budgeted cost of materials
Select an option to see the answer and solution.
The following items are included in the distribution cost
A. Advertisement
B. Dispatch clerk salary
C. Tender preparation cost
D. Sales manager salary
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A flexible budget requires careful study and classification of expenses into
A. Product expenses and period expenses
B. Past and current expenses
C. Administrative, selling, and factory expenses
D. Fixed, semi-variable, and variable expenses
Select an option to see the answer and solution.
When the actual output in the production process is less than the normal, the difference between the two is called
A. General loss
B. Abnormal loss
C. General profit
D. Abnormal profit
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Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm.Reason (R): Cash is an important constituent of the working capital based on recorded facts only.
A. Both (A) and (R) are correct, and (R) is the correct explanation of (A)
B. (A) is correct, but (R) is incorrect
C. (A) is incorrect, but (R) is correct
D. Both (A) and (R) are incorrect
Select an option to see the answer and solution.
