Costing MCQs

Volume variance arises because of:

Which of the following is usually as long-term budget?

Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?

Accounting information given by a company is Total assets turnover = 3 times Net profit margin = 10% Total assets = Rs. 1,00,000 The net profit is

Service costing is not used in one of the following:

Match the following. List-I List-II a. Short-term 1. . . . . . . . . is a financing activity. b. Current liabilities 2. Cash flow statement is useful for . . . . . . . . financial planning. c. Amount of creditors 3. Increase in . . . . . . . . is a source of cash. d. Payment of dividends 4. Increase in the . . . . . . . . results in increase in cash.

A favourable variance will arise when capital revenues are . . . . . . . . than expected.

. . . . . . . . costs are partly fixed and partly variable in relation to output.

Under applied or over applied factory overhead should be: