61
Average unit cost for each process is calculated by dividing the . . . . . . . . by . . . . . . . .
A)
Total cost, number of units
B)
Total process cost, number of units in process
C)
Total process cost, number of finished goods
D)
Total cost, number of units produced
Answer & Solution
Answer: Option
B
62
Highest in First Out (HIFO) method of issue of material is useful when the
A)
Price of material is increasing
B)
Price of material is decreasing
C)
Price of material is fluctuating
D)
Price of material is stable
Answer & Solution
Answer: Option
C
63
Material usage variance is computed by:
A)
SQ - AQ
B)
AQ/SQ
C)
(SQ - AQ) × SP
D)
SP × AQ
Answer & Solution
Answer: Option
C
64
Who proposed a model to apply economic order quantity concept of inventory management to determine the optimum cash holding in a firm?
A)
Keith V. Smith
B)
Miller and Orr
C)
William J. Baumol
D)
J. M. Keynes
Answer & Solution
Answer: Option
C
65
Which of the following is not a cash outflow for the firm?
A)
Taxes
B)
Interest payments
C)
Dividends
D)
Depreciation
Answer & Solution
Answer: Option
D
66
Comparison of the financial statements of the current year with the performance of previous years of the same firm is known as
A)
Trend analysis
B)
Horizontal analysis
C)
Intra-firm comparison
D)
All of the above
Answer & Solution
Answer: Option
D
67
. . . . . . . . is the cost which involves payment to outsiders.
A)
Out of pocket cost
B)
Imputed cost
C)
Notional cost
D)
None of these
Answer & Solution
Answer: Option
A
68
Calculating ratio for industry analysis implies all of the following except,
A)
it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry
B)
it helps to assess the financial standing of the firm as compared to other firms in the same industry
C)
it is not possible to standardise the accounting data of various firms following varied accounting policies
D)
comparison of average of the industry with those of the firm
Answer & Solution
Answer: Option
C
69
Match the following.
List-I List-II
a. Cost control purposes
1. . . . . . . . . is a predetermined cost
b. Standard cost
2. Responsibility accounting fixes responsibility for . . . . . . . .
c. Integrates
3. Cost accounting guides future . . . . . . . .
d. Production policies
4. Budgeting system . . . . . . . . key managerial functions
A)
a-4, b-3, c-2, d-1
B)
a-2, b-1, c-4, d-3
C)
a-2, b-3, c-4, d-1
D)
a-3, b-2, c-4, d-1
Answer & Solution
Answer: Option
B
70
Taylor's differential piece work plan provides that
A)
All labourers should be assigned different amount of work
B)
All labourers should be put in different time-period
C)
Those who produce above standard should receive higher wages than those producing below standard
D)
Payment should be the same on a fixed standard
Answer & Solution
Answer: Option
C
