41
The purchase of machinery by issuing long-term notes payable should be reported as a
A)
non-cash investing and financing activity
B)
cash outflow in the operating activity
C)
cash outflow in the investing activity
D)
cash outflow in the financing activity
Answer & Solution
Answer: Option
A
42
Cash flow statement is useful for financial planning.
A)
short-term
B)
long-term
C)
short-term as well as long-term
D)
None of the above
Answer & Solution
Answer: Option
A
43
The cost accounting method to compute basic cost of a product or service is
A)
Process costing
B)
Contract costing
C)
Uniform costing
D)
Unit costing
Answer & Solution
Answer: Option
D
44
Match the following.
List-I (Variances)List-II (Formulae)
a. MCV
1. SP (RSQ - AQ)
b. MPV
2. SP (SQ - AQ)
c. MUV
3. AQ consumed (SP - AP)
d. MMV
4. SC - AC
A)
a-4, b-3, c-2, d-1
B)
a-2, b-1, c-4, d-3
C)
a-4, b-1, c-2, d-3
D)
a-3, b-4, c-2, d-1
Answer & Solution
Answer: Option
A
45
Fixed cost . . . . . . . . in the same proportion in which output changes.
A)
does not change
B)
changes
C)
increases
D)
None of these
Answer & Solution
Answer: Option
A
46
Fixed cost per unit . . . . . . . . with increase in output.
A)
increases
B)
decreases
C)
remains constant
D)
increases at a decreasing rate
E)
increases proportionately
Answer & Solution
Answer: Option
B
47
On what basis are the selling and distribution overheads absorbed?
A)
Percentage on selling cost
B)
Percentage on factory cost
C)
Per unit rate
D)
None of these
Answer & Solution
Answer: Option
C
48
A group items in ABC system of inventory control are
A)
Small number of items with large rupee investment
B)
Large number of items with large rupee investment
C)
Large number of items with small money investment
D)
Very high quality items
Answer & Solution
Answer: Option
A
49
Works cost is a total of . . . . . . . .
A)
indirect material, indirect labour
B)
direct material, direct labour, direct or chargeable expenses and works expenses
C)
direct material, direct labour
D)
indirect material, indirect labour, indirect expenses
Answer & Solution
Answer: Option
B
50
Fund flow refers to changes in
A)
application
B)
sources
C)
both A and B
D)
working capital
Answer & Solution
Answer: Option
D
