81
When the completion stage of a contract is less than $$\frac{1}{4},$$ the total expenditure on the contract is transferred to . . . . . . . . account.
A)
Work-in-progress
B)
Profit and loss account
C)
Miscellaneous account
D)
None of these
Answer & Solution
Answer: Option
A
82
Match the following.
List-I List-II
a. Operating profit
1. Capital employed = . . . . . . . . + Preference share capital
b. Liquid liabilities
2. . . . . . . . . = Gross profit - Operating expenses
c. Capital employed
3. Quick assets = Quick ratio × . . . . . . . .
d. Equity share capital
4. Fixed assets ratio = Fixed assets ÷ . . . . . . . .
A)
a-2, b-3, c-4, d-1
B)
a-3, b-4, c-1, d-2
C)
a-4, b-3, c-2, d-1
D)
a-2, b-1, c-4, d-3
Answer & Solution
Answer: Option
A
83
A variable such as activity that causes cost over a given time is
A)
cost driver
B)
cost behaviour
C)
cost centre
D)
None of these
Answer & Solution
Answer: Option
B
84
The basic difference between a static budget and flexible budget is that
A)
a flexible budget considers only variable costs but a static budget considers all costs
B)
a flexible budgets allows management latitude in meeting goals, whereas static budget is based on fixed standards
C)
a flexible budget is applicable for a single department only but a static budget for entire production facility
D)
a flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production
Answer & Solution
Answer: Option
D
85
Liquid assets is determined by
A)
Current assets - Stock - Prepaid expenses
B)
Current assets + Stock + Prepaid expenses
C)
Current assets + Prepaid expenses
D)
None of the above
Answer & Solution
Answer: Option
A
86
Which of the following are the methods of determining cost behaviour?
A)
I, II and IV
B)
I, III, and IV
C)
II, III and IV
D)
I, II and III
Answer & Solution
Answer: Option
D
87
Which of the following would have been equal to factory overhead?
A)
Factory cost - Prime cost
B)
Factory cost + Prime cost
C)
Prime cost + Direct cost
D)
Factory cost + Direct expenses
Answer & Solution
Answer: Option
A
88
Material usage variance = Material mix variance + . . . . . . . .
A)
Material yield variance
B)
Material cost variance
C)
Material price variance
D)
Material quantity variance
Answer & Solution
Answer: Option
A
89
Which of the following is usually NOT a right enjoyed by a Principal in the contract of Agency?
A)
Right to revoke the agency
B)
Right to charge abnormal fee for the agency
C)
Right to repudiate the agency
D)
Right to recover the secret profits from the agent
E)
Right to enter into a contract
Answer & Solution
Answer: Option
B
90
Cost of goods sold is calculated:
A)
Cost of production + opening stock of finished goods - closing stock of finished goods
B)
Prime cost + factory overhead cost + work in progress at the beginning - works in progress closing
C)
Opening stock of raw materials + purchase of raw materials - closing stock of raw materials
D)
Cost of production + administrative expenses + work in progress closing - work in progress beginning
E)
Opening stock of work in progress + opening stock of finished goods + works expenses - closing stock of finished goods
Answer & Solution
Answer: Option
A
