Cost and Managerial Accounting

471. If there has been an over recovery of overheads, at the end of the accounting period the amount concerned should be?

  1. Debited to the company profit and loss account.
  2. Credited to the company profit and loss account.
  3. Carried forward to the next accounting period as a cost saving.
  4. Used to reduce next period's overhead recovery rate.
Correct answer: (B)
Credited to the company profit and loss account.

472. the term = contribution' refers to?

  1. The actual amount of profit made per unit.
  2. The budgeted profit per unit.
  3. The amount of profit which goes towards meeting the overheads of the business.
  4. The difference between sales revenue and variable costs per unit.
Correct answer: (D)
The difference between sales revenue and variable costs per unit.

473. When a business is faced with a limiting factor (one which limits the activity of an entity) and there is a choice to be made between options to follow, which of the following statements describes the optimal course of action?

  1. Choose the option which gives the highest unit profit.
  2. Choose the option which gives the highest unit contribution.
  3. Aim to achieve a balance of activities covering all of the options.
  4. Choose the option which gives highest contribution per unit of limiting factor.
Correct answer: (D)
Choose the option which gives highest contribution per unit of limiting factor.

474. Cost accountancy is the science, art and ______________ of cost accountant.

  1. Profession
  2. Management
  3. Administration
  4. Practice
  5. All of these
Correct answer: (D)
Practice

475. The main types of costing for ascertaining costs do not include

  1. Uniform costing
  2. Standard costing
  3. Marginal costing
  4. Historical costing
Correct answer: (D)
Historical costing

476. When job is very big and spread over long periods of time the method of costing adopted is

  1. Process
  2. Job
  3. Contract
  4. Operation
  5. Batch
Correct answer: (C)
Contract

477. An opportunity cost is a

  1. Direct expense
  2. Indirect expense
  3. Variable expense
  4. Fixed expense
  5. Semi-variable expense
Correct answer: (A)
Direct expense

478. Stock verification sheets are maintained to record the result of ______________ verification.

  1. Conceptual
  2. Physical
  3. Economic
  4. Detailed
  5. All of these
Correct answer: (B)
Physical

479. Sun Ltd. Makes a single product which it sells for 10 per unit. Fixed costs are 48,000 per month and the product has a contribution to sales ratio of 40%. In a period when actual sales were 1, 40,000. Sun Ltd.'s margin of safety in units was:

  1. 2,000
  2. 6,000
  3. 8,000
  4. 12,000
Correct answer: (A)
2,000

480. If Happy Ltd. Is subject to an effective income tax rate of 40%, the number of units Happy Ltd. Would have to sell to earn an after-tax profit of 90,000 is:

  1. 1,00,000 units
  2. 1,20,000 units
  3. 1,12,000 units
  4. 1,45,000 units
Correct answer: (B)
1,20,000 units
Previous
Page 48 of 62
Next