Author name: Administrator

633. Fifth step in process costing system is to

allocate separable costs
allocate joint costs
compute gross margin
assign total cost to completed units
✅ The correct answer is D.
Fifth step in process costing system is to assign total cost to completed units. Total cost is an economic measure that sums all expenses paid to produce a product, purchase an investment, or acquire a piece of equipment including not only the initial cash outlay but also the opportunity cost of their choices.

640. Which of the following statements are correct? i. In order to be insurable, a risk must be capable of statistical estimation. ii. In insurance, only economic or financial losses can be compensated.

Statement i is correct
Statement ii is correct
Both statements i and ii are correct
None of the three
✅ The correct answer is C.
Both the statements are correct: In order to be insurable, a risk must be capable of statistical estimation and In insurance, only economic or financial losses can be compensated.

643. In short run, a firm in monopolistic competition

Always earns profits
Incurs losses
Earns normal profit only
May earn normal profit, super normal profit or incur losses
✅ The correct answer is D.
In short run, a firm in monopolistic competition may earn normal profit, super normal profit or incur losses. In the short run, a monopolistically competitive firm maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. If average total cost is below the market price, then the firm will earn an economic profit.

59. Which one of the following concepts states that the publication or presentation of financial statements should not be delayed?

Objectivity concept
Timing concept
Timeliness concept
Reliability concept
✅ The correct answer is C.
Timeliness concept states that the publication or presentation of financial statements should not be delayed. Timeliness principle in accounting refers to the need for accounting information to be presented to the users in time to fulfill their decision making needs.

649. In Monopoly at various output levels

AR = MR
AR < MR
AR > MR
None of the above
✅ The correct answer is C.
A firm under monopoly faces a downward sloping demand curve or average revenue curve. In monopoly, since average revenue falls as more units of output are sold, the marginal revenue is less than the average revenue. In other words, under monopoly the MR curve lies below the AR curve.

652. Identify the statement which is not correct. Insurance agent should _________.

Indicate the scale of commission if asked by the customer
Share the commission by way of rebate
Disclose his licence on demand
Indicate the premium to be charged
✅ The correct answer is B.
Insurance agent should not share the commission by way of rebate. This practice is illegal and totally against the laws of Insurance Act and SEBI. The agent can even face cancellation of his license if he is found to share his commission.
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