Costing MCQs
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Question 1369hard
"Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?"
If 11,750completed units were transferred out, what was the closing inventory in Process B?"
Question 1370hard
A company manufactures a single product for which cost and selling price data are as follows:
Selling price per unit - Rs 12
Variable cost per unit - Rs 8
Fixed cost for a period - Rs 98,000
Budgeted sales for a period - 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:
Selling price per unit - Rs 12
Variable cost per unit - Rs 8
Fixed cost for a period - Rs 98,000
Budgeted sales for a period - 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:
Question 1371medium
Assertion (A): A high operating ratio indicates a favourable position.
Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.
Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.
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Question 1372hard
Consider the data below and answer the questions based on it.
Factory Expenses = Rs. 30000
Administrative Expenses = Rs. 20000
Labour Cost = Rs. 25000
Materials = Rs. 35000
Selling Expenses = Rs. 10000
Ascertain the prime cost with the help of the given cost data.
Factory Expenses = Rs. 30000
Administrative Expenses = Rs. 20000
Labour Cost = Rs. 25000
Materials = Rs. 35000
Selling Expenses = Rs. 10000
Ascertain the prime cost with the help of the given cost data.
Question 1373hard
Assertion (A) Break-even point can be determined both mathematically as well as graphically.
Reason (R) When it is determined on a graph paper, the graph drawn is named as 'break-even chart'.
Reason (R) When it is determined on a graph paper, the graph drawn is named as 'break-even chart'.
Question 1374hard
Assertion (A): Cash flow statement, as per the financial statements as well, is incapable of revealing the overall financial position of a firm.
Reason (R): Cash is an important constituent of the working capital based on recorded facts only.
Reason (R): Cash is an important constituent of the working capital based on recorded facts only.
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Question 1375hard
Match the items of List-I with List-II.
| List-I | List-II |
| a. Intangible assets | 1. Ind AS 31 |
| b. Impairment of assets | 2. Ind AS 34 |
| c. Interim financial reporting | 3. Ind AS 36 |
| d. Interests in joint ventures | 4. Ind AS 38 |
Question 1376hard
The debt-equity ratio of a company is 2 : 1. In this relation, match the following.
| List-I | List-II |
| a. Issue of equity shares | 1. No change on the ratio |
| b. Cash received from debtors | 2. Reduce the ratio |
| c. Redemption of debentures | 3. No change on the ratio |
| d. Purchased goods on credit | 4. Reduce the ratio |
Question 1377hard
Match the items of List-I with the items of List-II and choose the correct answer.
| List-I (Critical Control Standards) | List-II (Critical Points) |
| a. Physical standards | 1. Material cost per unit |
| b. Cost standards | 2. Labour hours per unit of output |
| c. Revenue standards | 3. Timing of production |
| d. Programme standards | 4. Average sales per customer |