51
Contract costing is not used in one of the following industries:
A)
Ship building
B)
Civil construction
C)
Automobiles
D)
Construction of bridges
Answer & Solution
Answer: Option
C
52
The ordinary trading account is a locked storehouse of most valuable information to which cost system is the . . . . . . . .
A)
key
B)
lock
C)
house
D)
None of these
Answer & Solution
Answer: Option
A
53
Material losses due to abnormal reasons should be transferred to . . . . . . . . . .
A)
Profit and loss account
B)
Costing Profit and Loss Account
C)
Trading Account
D)
None of these
Answer & Solution
Answer: Option
B
54
Volume variance arises because of:
A)
Increase in overhead rate per hour
B)
Decrease in overhead rate per hour
C)
Increase or decrease in actual output as compared to the budgeted output
D)
Difference in budgeted overheads and actual overheads
Answer & Solution
Answer: Option
C
55
Which of the following is usually as long-term budget?
A)
Capital expenditure budget
B)
Cash budget
C)
Sales budget
D)
None of these
Answer & Solution
Answer: Option
A
56
Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?
A)
Perpetual inventory
B)
LIFO
C)
FIFO
D)
Average cost
Answer & Solution
Answer: Option
C
57
Accounting information given by a company is
A)
Rs. 10,000
B)
Rs. 15,000
C)
Rs. 25,000
D)
Rs. 30,000
Answer & Solution
Answer: Option
D
58
Service costing is not used in one of the following:
A)
Electricity
B)
Hospitals
C)
Transport
D)
Electronics
Answer & Solution
Answer: Option
D
59
Match the following.
List-I List-II
a. Short-term
1. . . . . . . . . is a financing activity.
b. Current liabilities
2. Cash flow statement is useful for . . . . . . . . financial planning.
c. Amount of creditors
3. Increase in . . . . . . . . is a source of cash.
d. Payment of dividends
4. Increase in the . . . . . . . . results in increase in cash.
A)
a-4, b-3, c-2, d-1
B)
a-2, b-3, c-4, d-1
C)
a-3, b-2, c-4, d-1
D)
a-3, b-4, c-1, d-2
Answer & Solution
Answer: Option
B
60
A favourable variance will arise when capital revenues are . . . . . . . . than expected.
A)
more
B)
less
C)
lesser
D)
None of the above
Answer & Solution
Answer: Option
A
