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1042. If residual error is 51 and predicted cost value is 37, then observed cost value will be

✅ The correct answer is B.
Observed cost value = Residual error + Predicted cost value
= 51 + 37 = 88

1043. A risk which is classified as its contribution to risk of portfolio is classified as

classified risk

contributed risk

irrelevant risk

relevant risk

✅ The correct answer is D.
A risk which is classified as its contribution to risk of portfolio is classified as relevant risk. Relevant risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky assets.

1044. Blanket overhead rate is:

One single overhead absorption rate for the whole factory

Rate which is blank or nil rate

rate in which multiple overhead rates are calculated for each production department, service department etc

Always a machine hour rate

✅ The correct answer is A.
Blanket overhead rate is one single overhead absorption rate for the whole factory. It is a common absorption rate used throughout a factory and for all jobs and units of output irrespective of the departments in which they were produced or processed. It is a one single overhead absorption rate for the whole of the factory.

1045. An equity multiplier is multiplied to return on assets to calculate

return on assets

return on multiplier

return on turnover

return on stock

✅ The correct answer is A.
An equity multiplier is multiplied to return on assets to calculate return on assets. Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.

91. Trial Balance is prepared to check accuracy of

Ledger account balances

Balance sheet balances

Income statement balances

Cash flow statement balances

✅ The correct answer is A.
A Trial Balance is a statement that shows the total of debit and credit balances of accounts. The total of debit amounts shall be equal to the credit amounts for the trial balance to tally. Hence, it verifies the arithmetical accuracy of the postings in the ledger accounts.

1047. A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengeRs Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:

281250

187500

562500

None of the above

✅ The correct answer is C.

1030. Responsibility Centre can be categorised into:

Cost Centres only

Profit Centres only

Investment Centres only

Cost Centres, Profit Centres and Investment Centres

✅ The correct answer is D.
Responsibility Centre can be categorised into Cost Centres, Profit Centres and Investment Centres. Responsibility centers are often categorized by the degree of authority and responsibility given to the manager.

1031. When supply of a commodity increases without change in price, it is called

Fall in supply

Expansion in supply

Contraction in supply

Rise in supply

✅ The correct answer is D.
When supply of a commodity increases without change in price, it is called rise in supply.

1032. If book value is greater than market value comparison with investors for future stock are considered as

pessimistic

optimistic

experienced

inexperienced

✅ The correct answer is A.
If book value is greater than market value comparison with investors for future stock are considered as pessimistic. Book value is also the net asset value of a company calculated as total assets minus intangible assets (patents, goodwill) and liabilities. For the initial outlay of an investment, book value may be net or gross of expenses such as trading costs, sales taxes, service charges and so on.

1034. Cost which is changed in proportion to level total volume is

fixed cost

variable cost

total cost

infeasible cost

✅ The correct answer is B.
Cost which is changed in proportion to level total volume is variable cost. Variable costs are costs that change as the quantity of the good or service that a business produces changes.

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