Costing MCQs

Which of the following statements is correct in regards to Kaijen costing? 1. It is a system of cost reduction. 2. It is a system of continuous improvement without negative effects on the quality, staff and security. Select the correct answer:

Match the following. List-I List-II a. Variable costing 1. Absorption costing b. Valuation of stock is higher 2. Fixed cost is excluded from inventory valuation c. Marginal and differential costs are same 3. Marginal costing d. Marginal costing 4. No change in fixed cost

Standard costs is . . . . . . . .

Marginal cost is a:

The cost of . . . . . . . . process loss is absorbed in the cost of production of good units.

Match the following. List-I List-II a. Earning ability of firm 1. Basis of accounting b. Conservatism 2. P/V ratio c. Cash profit 3. Cash flow statement d. Cash and accrual 4. Prudence

The technique of standard costing may not be applicable in case of:

The method of costing applied in biscuit industries is . . . . . . . . costing and in steel industry . . . . . . . . costing.

When . . . . . . . . is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.