Costing

✅ The correct answer is A.
Systematic flow of services, goods or information from buying material for product delivery to customers is known as supply chain. A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information, and resources.

✅ The correct answer is B.
Reorder level = maximum consumption X maximum reorder period.

✅ The correct answer is B.
Slope coefficient of cost function is zero because it intersects the y-axis at constant.

✅ The correct answer is D.
Average method of pricing the material issues is useful when material prices are fluctuating. Under the ‘Average Cost Method’, it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period. The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale.

✅ The correct answer is B.
If percentage of overall gross margin is 15 and final sales value of whole production is $20000, then gross margin (in dollars) will be $300,000.
Gross Margin = Sale value × Gross margin percentage
$20000 × 15 = $300000.

✅ The correct answer is B.
Overhead refers to all Indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.

✅ The correct answer is A.
Cash Budget is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.

✅ The correct answer is B.
The process of allocating and apportioning the costs on suitable basis to all the departments is primary distribution.

✅ The correct answer is D.
An expected future cost which diverges in unconventional course of action is known as relevant cost. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.

✅ The correct answer is B.
Cost accounting differs from financial accounting in respect of ascertainment of cost. Cost Accounting refers to that branch of accounting which deals with costs incurred in the production of units of an organization. On the other hand, financial accounting refers to the accounting concerned with recording financial data of an organization, in order to exhibit exact position of the business.