In increasing production volume situation, the behaviour of fixed cost will be . . . . . . . . and variable cost will . . . . . . . .
A. decreases, increases
B. increase, decreasing
C. constant, increase
D. increase, constant
Select an option to see the answer and solution.
Match the following.
List-I
List-II
a. Absorption costing
1. . . . . . . . . is a logical extension of marginal costing.
b. Fixed expenses
2. . . . . . . . . is a valuable adjust to standard costing and budgetary costing.
c. Marginal costing
3. Contribution = . . . . . . . . + Profit.
d. Break-even analysis
4. . . . . . . . . is not very helpful in taking managerial decisions.
A. a-4, b-3, c-2, d-1
B. a-2, b-1, c-4, d-3
C. a-3, b-2, c-4, d-1
D. a-4, b-3, c-1, d-2
Select an option to see the answer and solution.
. . . . . . . . is the consolidated summary of the various functional budgets.
A. Master budget
B. Sales budget
C. Performance budget
D. Cash budget
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When factory overhead control account has an ending debit balance, factory overhead was . . . . . . . .
A. over applied
B. under applied
C. Both A and B
D. None of these
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An unfavourable material price variance occurs 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
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What is the most useful information derived from a break-even chart?
A. Relationship between revenue and costs at various levels of output
B. Volume or output level at which the enterprises break-even
C. Amount of sales revenue needed to cover enterprise variable costs
D. Amount of sales revenue needed to cover enterprise fixed costs
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When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to . . . . . . . .
A. 3 1 rd of Notional Profit × Work certified Cash received
B. 2 1 nd of Notional Profit × Work certified Cash received
C. 3 2 rd of Notional Profit × Work certified Cash received
D. Full Notional Profit
Select an option to see the answer and solution.
If factory overhead is Rs. 70,000 whose 70% is changed with the sales, then in this the amount of fixed part will be
A. 49,000
B. 70,000
C. 21,000
D. 91,000
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The costing method in which fixed factory overheads are added to inventory is
A. process costing
B. activity based costing
C. marginal costing
D. standard costing
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In ratio analysis, 'proforma analysis' implies
A. making a list of all the present ratios of the firm
B. comparison of liquidity ratios with other kind ofratio of the firm
C. comparison of the ratio of the firm relating to the performance of the firm
D. comparison of the firm's past and current ratios with future ratios to ascertain the relative strengths and weakness in the past and future
Select an option to see the answer and solution.
Idle time variance is . . . . . . . .
A. Idle time × actual labour
B. Idle time × standard rate
C. Idle time × budgeted labour rate
D. Idle time × historical cost
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Cash flow statement is prepared from
A. Balance Sheet
B. Profit and Loss A/c
C. Additional information
D. All of these
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The normal cost of normal output is Rs. 3,000; value of abnormal loss is Rs. 450 and normal output is 200 units. The units of abnormal loss would be-
A. 30 units
B. 1,333 units
C. 3,000 units
D. None of the above
Select an option to see the answer and solution.
Under the marginal costing concept, unit product cost would most likely be increased by
A. a decrease in the number of units produced
B. an increase in the number of units produced
C. an increase in the commission paid to salesman for each units sold
D. a decrease in the commission paid to salesman for each units sold
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Cost accounts deal partly with facts and figures and partly with . . . . . . . .
A. estimates
B. costs
C. income
D. revenue
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Which of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3?
I. Cash flow from borrowing activities.
II. Cash flow from operating activities.
III. Cash flow from financing activities.
IV. Cash flow from investing activities.
V. Cash flow from miscellaneous activities.
A. I, II and III
B. I, III and V
C. II, III and IV
D. I, IV and V
Select an option to see the answer and solution.
Permanent working capital is generally financed through
A. Long-term capital funds
B. Government assistance
C. Internal financing
D. Short-term loans from banks
Select an option to see the answer and solution.
Standard cost is a . . . . . . . . cost.
A. predetermined
B. historical
C. actual
D. final
Select an option to see the answer and solution.
An inflow of cash would result from which of the following?
A. The increase in an assets account other than cash
B. The decrease in an assets account other than cash
C. The decrease in an equity account
D. The decrease in a liability account
Select an option to see the answer and solution.
Formula of calculation of wages under Halsey Premium System is . . . . . . . .
A. √R + %(S - T)R
B. T × R + %(S - T)R
C. S S − T × T × R
D. R × S × T
Select an option to see the answer and solution.