1338. “For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales. Stock Turnover Ratio will be” :-

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8 times
6 times
9 times
10 times
✅ The correct answer is A.
Inventory turnover ratio = cost of goods sold / average inventory at cost

cost of goods sold is 25% of sales i.e
320000 * 25 % = 8000

average inventory at cost = 31000 – 29000 = 1000.

Stock turnover ratio = 8000/1000 = 8 times.

1337. Purchase order lead time is multiplied to number of units is sold per unit of time to calculate

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carrying costs
relevant total costs
economic order quantity
reorder point
✅ The correct answer is D.
Purchase order lead time is multiplied to number of units is sold per unit of time to calculate reorder point. The reorder point (ROP) is the level of inventory which triggers an action to replenish that particular inventory stock.

1336. A company sells its stock shares for raising more equity capital is classified as

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dealer communication offering
seasoned equity offering
electronic equity offering
electronic order offering
✅ The correct answer is B.
A company sells its stock shares for raising more equity capital is classified as seasoned equity offering. A seasoned issue is an issue of additional securities from an established company whose securities already trade in the secondary market. A seasoned issue is also known as a “seasoned equity offering” or “follow-on offering.” New shares issued by blue-chip companies are considered seasoned issues.

1334. Surplus not distributed (retained earnings) could contribute to

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Financial disaster for a company
Financial soundness of a company
Discredit of a company in the eyes of public
Liabilities of a company
✅ The correct answer is B.
Retained earnings refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. Retained earnings contribute to the financial soundness of the company.

1333. The actual output of 162,500 units and actual fixed costs of Rs 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs 18,000 over budget. What was the budget variable cost per unit?

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Rs 1.20
Rs 1.31
Rs1.42
Rs 1.50
✅ The correct answer is A.
Means budget expense = Rs. 300000 – Rs. 18000
= Rs. 282000
Budgeted variable overhead = Rs. 282000 – (fixed cost) Rs. 87000
= Rs.195000
Variable cost pr unit is = 195000 / 162500
= Rs. 1.20

1331. Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called

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economic order quantity purchasing
annual purchasing
just in time purchasing
both a and b
✅ The correct answer is C.
Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called just in time purchasing. Just-in-time purchasing (JIT purchasing) is a cost accounting purchasing strategy. You purchase goods so that they’re delivered just as they’re needed to meet customer demand.

1327. The consumer is in equilibrium at a point where the budget line

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Is above an indifference curve
Is below an indifference curve
Is tangent to an indifference curve
Cuts an indifference curve
✅ The correct answer is C.
The consumer is in equilibrium at a point where the budget line is tangent to an indifference curve. It means that marginal substitution rate between X and Y (MRSXY) should be diminishing.

1325. In calculation of betas, an adjusted betas are highly dependent on historical

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unadjusted betas
adjusted historical betas
fundamental historical betas
fundamental varied betas
✅ The correct answer is A.
In calculation of betas, an adjusted betas are highly dependent on historical unadjusted betas. Betas calculated purely based on historical data are unadjusted betas. However, this beta estimate based on historical estimates is not a good indicator.