21
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
Answer & Solution
Answer: Option
C
22
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
Answer & Solution
Answer: Option
A
23
. . . . . . . . is the consolidated summary of the various functional budgets.
A)
Master budget
B)
Sales budget
C)
Performance budget
D)
Cash budget
Answer & Solution
Answer: Option
A
24
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
Answer & Solution
Answer: Option
B
25
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
Answer & Solution
Answer: Option
A
26
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
Answer & Solution
Answer: Option
B
27
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)
$${\frac{1}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$
B)
$${\frac{1}{2}^{{\text{nd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$
C)
$${\frac{2}{3}^{{\text{rd}}}}{\text{of Notional Profit}} \times \frac{{{\text{Cash received}}}}{{{\text{Work certified}}}}$$
D)
$${\text{Full Notional Profit}}$$
Answer & Solution
Answer: Option
C
28
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
Answer & Solution
Answer: Option
C
29
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
Answer & Solution
Answer: Option
B
30
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
Answer & Solution
Answer: Option
D
