Costing

✅ The correct answer is B.
Master Budget is a summary of all functional budgets in a capsule form. Master Budget, in a broader sense, is a summary budget incorporating all financial budgets in a capsule form.

✅ The correct answer is A.
40% of May sales for cash (40% x Rs. 55,000) = Rs.22,000
70% of April credit sales less 2% discount (70% x 60% x Rs. 70,000 x 98%) = Rs. 28,812
27% of March credit sales (27% x 60% x Rs. 60,000)
= Rs. 9,720
Total Sales = Rs. 22000 + Rs. 28812 + Rs. 9720 = Rs. 60,532.

✅ The correct answer is A.
Output after normal loss
= 10000 – (10000 × 20%) = 8000 units.
Output after abnormal loss
= 8000 – 400 = 7600 units.

✅ The correct answer is C.
For slope coefficient b, value of estimated coefficient is considered as t-value. In statistics, the t-statistic is the ratio of the departure of the estimated value of a parameter from its hypothesized value to its standard error.

✅ The correct answer is D.
Master budget includes all projections of company’s budget and focuses on marketing plan and financial plan.

✅ The correct answer is A.
In estimation of cost function, an example of independent variable is level of activity. The activity level is the amount of an activity used by a cost object. The concept is employed in activity-based costing. If the activity level can be reduced, then activity costs should decline, thereby reducing the overall expenditure level of a business.

✅ The correct answer is A.
Budgeted direct labour cost rate = Budgeted direct labour cost ÷ Budgeted total direct labour hours
= $480000 ÷ 3800 = $126.32 per labour hour

✅ The correct answer is A.
In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is $2200, then this is classified as over allocated budget because allocated amount is less than actual amount.

✅ The correct answer is C.
Quantitative expression, of action plan by management of firm for a specified period of time is classified as budget. A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses, and individuals.

✅ The correct answer is D.
Costs of goods acquired from suppliers is classified as purchasing costs. It is important when you decide to buy a home that you have a full understanding of the costs associated with your purchase.