Cost and Managerial Accounting

321. When actual loss is less than the estimated loss, the difference between the two is considered to be ______________

1. Abnormal gain
2. abnormal loss
3. normal loss
4. income

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322. Equivalent units represent the production of a process in terms of ______________ units.

1. Completed
2. total production
3. semi-finished
4. both a& c

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323. The process costing is not used in one of the following.

1. Chemical
2. textiles
3. cement
4. oil refining

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324. ______________ budget is the most important budget and it forms the basis on which all the other budgets are built up.

1. Production
2. material
3. cash budget
4. sales

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325. ______________ budget gives differentbudgeted costs for different levels of activity.

1. Master
2. Fixed
3. Flexible
4. all of these

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326. ______________ determines the priorities of functional budget.

1. Principal Budget Factor
2. Limiting Factor
3. both a & b
4. none of the above.

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327. In case of materials the key factor may be.

1. Insufficient advertising
2. restrictions imposed by quota
3. low market demand
4. shortage of power

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328. The limitations of ______________ has led to the development of tandard costing system.

1. Historical costing system
2. cost accounting
3. management accounting
4. none of these

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329. Standards set provide yardsticks against which ______________ are compared.

1. Budgeted costs
2. Estimated costs
3. Actual costs
4. None of these

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330. Material usage variance = standard price( ______________ )

1. Standard usage-actual usage
2. Standard unit price-actual unit price
3. Standard quantity
4. Actual quantity

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