Costing MCQs

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

Which of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3?
I. Cash flow from borrowing activities.
II. Cash flow from operating activities.
III. Cash flow from financing activities.
IV. Cash flow from investing activities.
V. Cash flow from miscellaneous activities.

Assertion (A): Ratio analysis is one of the tools employed to know the financial health of a concern.
Reason (R): Ratio analysis is not the only technique available to take an investment decision.

Match the following.

List-I	List-II
a. Cost accounting	1. . . . . . . . . is usually prepared every month.
b. Funds flow statement	2. . . . . . . . . deals with the cost of production, selling and distribution.
c. Cash flow statement	3. . . . . . . . . is an important technique financial analysis.
d. Ratio analysis	4. . . . . . . . . depicts the profit or loss made during a specified period.

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.

Match the following.

List-I	List-II
a. Classification of costs into fixed and variable costs	1. Contribution
b. Difference between sales and variable costs	2. P/V ratio
c. Both fixed and variable costs are charged to product	3. Marginal costing
d. Relative profitability	4. Absorption costing

Match the following.

List-I	List-II
a. Excess of actual sales over the break-even sales volume	1. Contribution
b. Sum of fixed cost and profit	2. Cost volume profit analysis
c. Break-even chart	3. Unaffected by change in output
d. Break-even point	4. Margin of safety

"Calculate workers recruited and joined from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method andSeparation method No of workers replaced during the quarter is 80"

"Which of the following statements is/are correct?
1. A materials requisition note is used to record the issue of direct material to a specific job.
2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost.
3. The job costing method can be applied in costing batches"