Costing MCQs

Elements of cost are

. . . . . . . . is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

A capital investment is one that

Which of the following are the benefits of responsibility accounting? I. It facilitates the centralization of decision-making. II. It provides a system of closer control. III. It measures the performance of individuals in an objective manner. IV. It develops a sense of cost-consciousness among managers and their subordinates.

In automobile, . . . . . . . . costing is used.

Match the items in List-I with the items in List-II and indicate the correct answer. List-I List-II a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance c. Interest coverage ratio 3. Long-term debts/Shareholder's Funds d. Capital gearing ratio 4. Shareholder's Funds/Total Assets

Inventory turnover in days = Days during the period ÷ . . . . . . . .

The statement prepared under process costing is called

Which aspect of business is affected the most by implementing JIT?