1
. . . . . . . . is the smallest segment of activity or area or responsibility for which costs are accumulated.
A)
Cost object
B)
Cost centre
C)
Cost driver
D)
None of the above
Answer & Solution
Answer: Option
B
2
Economic order quantity analysis is used for-
A)
Ratio analysis
B)
Budgetory control
C)
Inventory control
D)
Sales budgeting
Answer & Solution
Answer: Option
C
3
Which of the following involves receiving a required inventory item at the exact time needed?
A)
PERT
B)
FOB
C)
JIT
D)
ABC
Answer & Solution
Answer: Option
C
4
Labour rate variance is computed by multiplying the:
A)
Standard labour rate with the difference between standard labour hours and actual labour hours
B)
Actual labour hours with the difference between standard labour hours and actual labour hours
C)
Actual labour rate with the difference between standard labour rate and actual labour hours
D)
None of the above
Answer & Solution
Answer: Option
D
5
Market price method is considered to be the best method when . . . . . . . .
A)
quotations have to be sent
B)
prices fluctuate
C)
materials are subject to natural wastage
D)
None of these
Answer & Solution
Answer: Option
A
6
Bin card is a record of . . . . . . . . only.
A)
cost
B)
value
C)
quantity
D)
expense
Answer & Solution
Answer: Option
C
7
The full form of CIF is:
A)
Cost, Insurance and Freight
B)
Cost, Investment and Freight
C)
Company, Insurance and Freight
D)
Company, Investment and Freight
Answer & Solution
Answer: Option
A
8
Process costing is used in which industry?
A)
Manufacturing industries
B)
Mining industries
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
C
9
Fixed cost per unit . . . . . . . . with rise in output and . . . . . . . . with fall in output.
A)
decreases, increases
B)
increases, decreases
C)
is constant, remains same
D)
None of the above
Answer & Solution
Answer: Option
A
10
Match the following.
List-I List-II
a. Prepaid expenses
1. Solvency ratio
b. Sales ratio
2. Net profit margin × Investment turnover
c. Return on investments
3. Turnover ratio
d. 100-Proprietary ratio
4. Current asset
A)
a-4, b-3, c-1, d-2
B)
a-4, b-3, c-2, d-1
C)
a-2, b-1, c-4, d-3
D)
a-2, b-4, c-1, d-3
Answer & Solution
Answer: Option
B
