61
. . . . . . . . costs are partly fixed and partly variable in relation to output.
A)
Variable
B)
Fixed
C)
Semi-variable
D)
Both A and B
Answer & Solution
Answer: Option
C
62
Under applied or over applied factory overhead should be:
A)
carried forward to next year
B)
shown as an extraordinary item
C)
apportioned among cost of goods sold and applicable to inventory
D)
written off
Answer & Solution
Answer: Option
C
63
The margin of safety may be defined as
A)
the point at which break-even point sales are achieved
B)
the excess of planned sales over the current actual sales
C)
the extent to which sales revenue exceeds fixed costs
D)
the difference between planned sales and break-even point sales
Answer & Solution
Answer: Option
D
64
. . . . . . . . is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.
A)
Rolling budget
B)
Continuous budget
C)
Annual budget
D)
Both A and B
Answer & Solution
Answer: Option
D
65
Which of the following is not an activity listed in the statement of cash flows?
A)
Financing activities
B)
Operating activities
C)
Funding activities
D)
Investing activities
Answer & Solution
Answer: Option
C
A)
$$\frac{{2D}}{{Ci}}$$
B)
$$\frac{{Ci}}{{100}}$$
C)
$$\sqrt {\frac{{2D{C_0}}}{{Ci}}} $$
D)
$$\frac{D}{{100}}$$
Answer & Solution
Answer: Option
C
67
Maintenance charges are in the nature of . . . . . . . . expenses.
A)
Fixed
B)
Variable
C)
Semi-variable
D)
None of these
Answer & Solution
Answer: Option
C
68
When is the net present value negative,
A)
the present value of cash outflows is greater than the future value of cash outflows
B)
the future value of cash inflows is greater than the present value of cash outflows
C)
the present value of cash outflows is greater than the present value of cash inflows
D)
the present value of cash inflows is greater than the present value of cash outflows
Answer & Solution
Answer: Option
C
69
The use of LIFO method is suitable when prices are:
A)
Falling
B)
Rising
C)
Constant
D)
In all of the above conditions
Answer & Solution
Answer: Option
B
70
Match the following.
List-I List-II
a. Marginal cost
1. . . . . . . . . = Contribution ÷ Sales
b. P/V ratio
2. Contribution = Selling price - . . . . . . . .
c. Profit
3. . . . . . . . . = Sales (1 - P/V ratio)
d. Variable costs
4. Margin of safety = . . . . . . . . ÷ P/V ratio
A)
a-4, b-3, c-2, d-1
B)
a-3, b-1, c-4, d-2
C)
a-2, b-1, c-4, d-3
D)
a-2, b-3, c-4, d-1
Answer & Solution
Answer: Option
C
