Costing MCQs

Match the items in List-I with the items in List-II.

List-I	List-II
a. Debt equity ratio	1. $$\frac{{{\text{Net Profit before Interest and Tax}}}}{{{\text{Interest on Long-term Loan}}}}$$
b. Proprietary ratio	2. $$\frac{{{\text{Equity Share Capital}} + {\text{ Reserve}}}}{{{\text{Preference Share Capital }} + {\text{ Interest Bearing Finance}}}}$$
c. Interest coverage ratio	3. $$\frac{{{\text{Long-term Debts}}}}{{{\text{Shareholder's Funds}}}}$$
d. Capital gearing ratio	4. $$\frac{{{\text{Shareholder's Funds}}}}{{{\text{Total Assets}}}}$$

Third step in developing operating budget is

Match the following.

List-I	List-II
a. Leverage ratio	1. Short-term solvency
b. Liquidity ratio	2. Earning capacity
c. Turnover ratio	3. Relationship between debt and equity
d. Profitability ratio	4. Efficiency of asset management

AT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%. The material usage budget for next year is

Match the items of List-I with those of List-II.

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

Match the following.

List-I (Variances)	List-II (Causes)
a. Overhead efficiency variance	1. Power failure
b. Overhead volume variance	2. Appointing low grade employees
c. Labour idle time variance	3. Poor working condition
d. Labour efficiency variance	4. Working days being more or less than budgeted

"Calculate workers left and discharged from the following:

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

Arrange the following categories of cash inflows and cash outflows in a correct order.
1. Cash flows from investing activities.
2. Cash flows from financing activities.
3. Cash flows from operating activities.

From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year.
Sales price: Rs. 25 per unit
Variable manufacturing costs: Rs. 12 per unit
Variable selling costs: Rs. 3 per unit
Fixed factory overheads: Rs. 5,00,000
Fixed selling costs: Rs. 3,00,000