Cost and Managerial Accounting

361. Credit and collection cost is an item of

1. Selling overhead
2. office overhead
3. prime cost
4. administrative overhead

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362. In service costing, fixed charges are also called as ______________

1. Standing charges
2. variable charges
3. fixed charges
4. none of these

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363. ______________ budget is the preparation of budget starting from a clean state.

1. Performance
2. Zero Base
3. Cash
4. none of these

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364. When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to ______________

1. 1/3rd of Notional Profit x cash received
   Work certified
2. ½ of Notional Profit x cash received
   Work certified
3. 2/3rd of Notional profit x cash received
   Work certified
4. full Notional Profit.

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365. Costing is a technique of

1. Inventory control
2. Management control
3. Ascertainment of cost
4. Calculation of cost
5. Reduction of cost

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366. ______________ is an extension of job costing.

1. Process costing
2. Batch costing
3. Contract costing
4. Operation costing
5. None of these

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367. ______________ costing is used in transport undertaking.

1. Operating
2. Standard
3. marginal
4. Absorption
5. Service

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368. Opportunity cost does not involve

1. Cash inflow
2. Cash outflow
3. Cash outlay
4. Either (a) or (b)
5. None of these

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369. Re-ordering level is = Maximum consumption x ______________

1. Minimum consumption
2. Maximum re-orders period
3. Minimum re-orders period
4. Both (a) and (b)
5. None of these

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370. The two levels of material controls are quantity control and

1. Financial control
2. Value control
3. Quality control
4. Both (b) and (c)
5. All of these

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