The formula for net cash inflow of a project is
A. Sales - Operating expenses - Interest - Tax
B. Sales - Operating expenses
C. Net profit after tax + Depreciation
D. Gross profit + Depreciation
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Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to the . . . . . . . .
A. production departments
B. service departments
C. Both A and B
D. None of these
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Profit for the objective of calculating a ratio may be taken as
A. Profit before tax but after interest
B. Profit before interest and tax
C. Profit after interest and tax
D. All of the above
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. . . . . . . . expenses are partly fixed and partly variable.
A. All expenses
B. Variable
C. Fixed
D. Semi-variable
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In an activity based cost system, an activity/unit of work or task with differentiated purpose will be classified as
A. different task
B. purpose cost
C. an activity
D. an allocation cost
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Factory cost is also known as the name of . . . . . . . . .
A. Homogeneous/Even cost
B. Manufacturing cost
C. Total cost
D. Production cost
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Variable cost per unit . . . . . . . .
A. remains constant
B. varies
C. decreases
D. increases
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Cost Accountancy is the science, art and . . . . . . . . of a cost accountant.
A. practice
B. exercise
C. hard work
D. effort
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A responsibility centre in which manager is responsible for cost only, is known as
A. Cost Centre
B. Profit Centre
C. Investment Centre
D. All of these
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In . . . . . . . . costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year:
A. Multiple
B. Process
C. Operation
D. Single
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Tender for construction is an
A. Estimation of profit
B. Estimation of cost
C. Estimation of selling price
D. Estimation of work
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. . . . . . . . is an example of short-term budget.
A. Cash budget
B. Capital expenditure budget
C. Material budget
D. Both A and C
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Stock Adjustment Account is debited with . . . . . . . . and credited with . . . . . . . .
A. surplus, shortage of stock
B. shortage of stock, surplus
C. excess, loss
D. None of these
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The process of explaining the meaning, significance, and relationship between two financial factors is called
A. Summarization
B. Analysis
C. Interpretation
D. None of the above
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Efficiency 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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Which of the following technique of inventory control is specially designed to have better control on investment and cost:
A. ABC Analysis
B. VED Analysis
C. SDE Analysis
D. GOLF Analysis
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The contract cost is used in-
A. Ship building
B. Aircraft industry
C. Self-propelled vehicle industry
D. None of these
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Indicate the correct option as regards the sources of funds for a funds flow statement from the following
1. Increase in working capital.
2. Decrease in working capital.
3. Writing-off the intangible/fictitious assets.
4. Issuing equity shares for acquisition of a building for office.
5. Charging depreciation on fixed assets.
Select the correct answer
A. 1, 3 and 4
B. 2, 3 and 5
C. 1, 4 and 5
D. 2, 3 and 4
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Re-ordering level = Maximum consumption × . . . . . . . .
A. Average re-order period
B. Maximum usage
C. Maximum re-order period
D. Normal usage
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Which of the following is not a feature of budgetary control?
A. A tool for management control
B. An instrument of delegation and authority
C. An instrument for evaluating the overall performance
D. A statement of budget and forecasts
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