The technique of standard costing may not be applicable in case of:
A. Large concerns
B. Small concerns
C. All concerns
D. Both B and C
Select an option to see the answer and solution.
The method of costing applied in biscuit industries is . . . . . . . . costing and in steel industry . . . . . . . . costing.
A. job, process
B. job, contract
C. batch, multiple
D. process, operation
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When . . . . . . . . is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.
A. a predetermined rate
B. actual rate method of absorption
C. Both A and B
D. None of these
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Match the items of the following two lists:
List-I
List-II
a. Statement of changes in working capital
1. Cash flow statement
b. Deferred tax
2. Fixed assets
c. Three activities
3. Funds flow statement
d. Impairment loss
4. Balance sheet
A. a-1, b-2, c-3, d-4
B. a-3, b-4, c-2, d-1
C. a-3, b-4, c-1, d-2
D. a-4, b-3, c-1, d-2
Select an option to see the answer and solution.
Cost of production is
A. Prime cost + Factory overheads
B. Factory cost + Administrative overheads
C. Direct cost + Indirect expenses
D. Prime cost + Administrative overheads
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Under inflationary conditions a higher value of inventory is assigned under:
A. LIFO method
B. FIFO method
C. Weighted average method
D. None of the above
Select an option to see the answer and solution.
The cause of increase in cost per unit under process costing is
A. Abnormal wastage
B. Normal wastage
C. Abnormal gain
D. Normal gain
Select an option to see the answer and solution.
Under the inflationary conditions, the value of closing stock will be highest under the:
A. LIFO method
B. FIFO method
C. Weighted Average method
D. None of the above
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According to which of the following methods of valuation, issuances are linked to current economic prices?
A. LIFO method
B. FIFO method
C. HIFO method
D. Weighted average value method
Select an option to see the answer and solution.
. . . . . . . . is the oldest branch of accounting.
A. Financial accounting
B. Cost accounting
C. Management accounting
D. None of these
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Cost accounting disclose . . . . . . . .
A. the financial position
B. profit/loss of a product, job or service
C. effect and impact of cost on business
D. None of these
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The collection of debtors
A. Decreases the current ratio
B. Increases the current ratio
C. Does not affect the current ratio
D. None of the above
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Last in first out method is suitable in times of . . . . . . . .
A. rising prices
B. falling prices
C. fluctuating prices
D. None of these
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The internal factors affecting the wage mix include:
(i) Relative worth of the job
(ii) Regional wage rates
(iii) Employer's ability to pay
(iv) Manpower market conditions
A. (i), (ii) and (iii)
B. (i) and (iii)
C. (ii), (iii) and (iv)
D. All of the above
Select an option to see the answer and solution.
If 50% of the contract is completed, then the following amount of profit is normally credited
A. Earned profit × 100 50
B. Earned profit × 2 3 × Contract value Cash received
C. Earned profit × 3 2 × Contract value Cash received
D. Earned profit × 3 2 × Certified value Cash received
Select an option to see the answer and solution.
If sales revenue at 60% capacity is Rs. 4,50,000, sales revenue at 70% capacity on a fall in selling price by 5% would be?
A. Rs. 4,98,750
B. Rs. 7,50,000
C. Rs. 5,25,000
D. Rs. 7,12,500
Select an option to see the answer and solution.
Assertion (A): Debt-equity ratio indicates the long-term solvency of a company.
Reason (R): It measures the ability of the company to pay-off its long-term liabilities.
Select the correct answer.
A. Both (A) and (R) are correct, and (R) is the correct reason for (A)
B. Both (A) and (R) are correct, but (R) does not explain (A) correctly
C. (A) is correct, but (R) is incorrect
D. (A) is incorrect, but (R) is correct
Select an option to see the answer and solution.
Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .
A. Job costing
B. Operating costing
C. Process costing
D. Both B and C
Select an option to see the answer and solution.
The total variable cost . . . . . . . . in total proportion to output.
A. increases
B. does not increase
C. decreases
D. None of these
Select an option to see the answer and solution.
Under which of the cost differences international trade would not take place?
A. Equal
B. Comparative
C. Absolute
D. All of these
Select an option to see the answer and solution.