Costing MCQs

Statement (A): It is necessary to tally current costs with current income in order to find out the correct profit. Reason (R): LIFO ensures matching of current costs with current income.

Basis of apportionment of creche expenses is . . . . . . . .

Cost Accounting has been developed because of . . . . . . . . of Financial Accounting.

If the amount of work certified is less than . . . . . . . . of the contract price, then no profit should be taken to Profit & Loss Account.

Contracts where all agreed costs are recovered is known as:

Match the items of List-I with those of List-II and indicate the correct answer List-I List-II a. Acid test ratio 1. Profitability analysis b. Debt service coverage ratio 2. Activity analysis c. Debt equity ratio 3. Liquidity analysis d. Stock turnover ratio 4. Long-term solvency analysis

Material mix variance = standard cost of standard mix - . . . . . . . .

Administration and management overheads are realized as a percentage

The origin of Kaizen costing in