Cost and Managerial Accounting

191. ______________ Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

  1. Financial
  2. Cost
  3. both a & b
  4. none of these
Correct answer: (B)
Cost

192. Stock Adjustment Account is debited with ______________ and credited with ______________

  1. Surplus, shortage of stock
  2. shortage of stock, surplus
  3. excess, loss
  4. none of these
Correct answer: (B)
shortage of stock, surplus

193. Average cost method of valuing material issues is suitable when ______________

  1. Prices rise
  2. prices fall
  3. prices fluctuate considerably
  4. none of these
Correct answer: (C)
prices fluctuate considerably

194. Stock verification sheets are maintained to record the results of ______________

  1. Physical verification
  2. financial control
  3. financial verification
  4. quality verification
Correct answer: (A)
Physical verification

195. Inventory turnover ratio = Cost of ______________ during the period ÷ Cost of average inventory held during the period.

  1. Inventory consumed
  2. minimum inventory
  3. maximum inventory
  4. none of these
Correct answer: (A)
Inventory consumed

196. Material losses due to abnormal reasons should be transferred to ______________

  1. Profit and loss account
  2. Costing Profit and Loss Account
  3. Trading Account
  4. none of these
Correct answer: (B)
Costing Profit and Loss Account

197. ______________ is concerned with discovery of facts concerning a job and ______________ is concerned with ascertaining the money value of a job.

  1. Job description, job evaluation
  2. job specifications, job evaluation
  3. job analysis, job evaluation
  4. none of these
Correct answer: (C)
job analysis, job evaluation

198. Under Merrick's multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between ______________ of the standard output.

  1. 0% and 100%
  2. 0% and 120%
  3. 0% and 83%
  4. none of these
Correct answer: (C)
0% and 83%

199. ______________ is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.

  1. Over absorption of overheads
  2. under absorption of overheads
  3. overheads absorption
  4. none of these.
Correct answer: (B)
under absorption of overheads

200. Such expenses which are included (even though they are not incurred) for taking managerial decisions are called ______________

  1. Notional expenses
  2. actual expenses
  3. imputed
  4. none of these
Correct answer: (A)
Notional expenses
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