Cost and Managerial Accounting

231. Cost Accounting has been developed becauseof ______________ of Financial Accounting.

1. Limitations
2. advantages
3. both a & b
4. none of these

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232. Cost accounting is based on ______________ figures.

1. Estimated
2. historical
3. actual
4. none of these.

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233. Cost of production is equal to ______________

1. Works cost plus Administration Overheads
2. Prime cost plus Works cost
3. prime cost plus works overhead
4. works overhead plus administration overheads

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234. Cost centre and cost unit are ______________

1. not the same
2. the same
3. not related
4. none of these

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

1. Opportunity
2. incremental revenue
3. alternative revenue
4. none of these

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236. Fixed cost per unit ______________ with increase in output.

1. decreases
2. increases
3. changes
4. sometimes

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237. Material control aims at achieving effective ______________

1. Material management
2. quality control
3. accounting of material
4. material supply

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238. Inflated price method of valuing material issues is suitable when ______________

1. Materials are subject to natural wastage
2. prices rise
3. prices fall
4. none of these

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239. The quantity of material to be ordered at one time is known as ______________

1. Ordering quantity
2. commercial order quantity
3. economic order quantity
4. none of these

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

1. Inventory turnover ratio
2. material consumed during the period
3. cost of average stock during the period
4. none of these

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