Variable cost increases with . . . . . . . . in output.
A. increase
B. decrease
C. increase or decrease
D. None of these
Select an option to see the answer and solution.
What is the effect of increase in fixed cost?
A. Reduces profit volume ratio
B. Raises break-even point
C. Increases margin of safety
D. Reduces contribution
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The per unit expense of the . . . . . . . . portion factory overhead varies with the volume of production while . . . . . . . . portion remains the same with volume.
A. fixed, variable
B. variable, fixed
C. variable, semi-variable
D. None of these
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Which of the following is not included in estimating after tax incremental operating cash flows, for a project?
A. Effects of inflation
B. Opportunity cost
C. Sunk cost
D. None of these
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Study the following statements and mark your answers:
Wage Incentive Plans have the following objects:
I. Increasing worker's morale
II. Lowering unit cost
III. Lowering capital cost
IV. Lowering depreciation charges
A. I and IV are correct
B. I and II are correct
C. I and III are correct
D. All the above are correct
Select an option to see the answer and solution.
Material control aims at achieving effective . . . . . . . .
A. material management
B. quality control
C. accounting of material
D. material supply
Select an option to see the answer and solution.
Cost centre and cost unit are . . . . . . . .
A. not the same
B. the same
C. not related
D. None of these
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Which of the following comes under efficiency ratios?
A. Average collection period
B. Inventory turnover ratio
C. Fixed assets turnover ratio
D. All of the above
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An unfavourable material usage arises because of:
A. Price increase in raw materials
B. Price decrease in raw materials
C. Less than anticipated normal wastage in the manufacturing process
D. More than anticipated normal wastage in the manufacturing process
Select an option to see the answer and solution.
For a transport concern like Bus Transport, the most appropriate method of costing technique will be:
A. Unit Costing
B. Standard Costing
C. Operating Costing
D. Job Costing
E. Batch Costing
Select an option to see the answer and solution.
The total of all direct expenses is known as . . . . . . . . cost.
A. prime
B. works
C. production
D. Both A and B
Select an option to see the answer and solution.
Which of the following is not correct?
A. Margin of Safety = V P ratio Profit
B. V P ratio = Change in sales Change in contribution × 100
C. Breakeven point in units = Contribution per unit Fixed Cost
D. Required sales to earn the desired profits = V P ratio Desired Profit
Select an option to see the answer and solution.
What does a low stock turnover indicates?
A. Managerial efficiency
B. Solvency
C. Over-investment in stock
D. All of these
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The cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?
A. Direct material inventory
B. Work in-process inventory
C. Finished goodsinventory
D. Supplier inventory
Select an option to see the answer and solution.
Volume variance is divided into . . . . . . . .
A. Capacity variance, calendar variance and expenditure variance
B. Capacity variance, calendar variance and efficiency variance
C. Capacity variance, expenditure variance and efficiency variance
D. Calendar variance, expenditure variance and efficiency variance
Select an option to see the answer and solution.
Responsibility accounting aims at collecting and reporting costing information
A. Department-wise
B. Cost centre-wise
C. Function-wise
D. Product-wise
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Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?
A. General price level method
B. Specific price level method
C. Current cost accounting method
D. Generally accepted accounting principles
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. . . . . . . . is most suitable when quality of work is of prime importance.
A. Piece rate system
B. Time wage system
C. Both A and B
D. None of these
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Arrange the following categories of cash inflows and cash outflows in a correct order.
1. Cash flows from investing activities.
2. Cash flows from financing activities.
3. Cash flows from operating activities.
A. 3, 1, 2
B. 1, 3, 2
C. 3, 2, 1
D. 2, 1, 3
Select an option to see the answer and solution.
Why is cash budget prepared?
A. It helps in cash management
B. It helps in preparing balance sheet
C. It is legally compulsory
D. Both A and C
Select an option to see the answer and solution.