Costing

✅ The correct answer is A.
A goods receipt note (GRN) is created to record the delivery of items from your suppliers. A GRN is created against an issued purchase order. When a GRN is created for an item, any pending item quantity for an approved indent request will be automatically issued.

✅ The correct answer is C.
If units of normal spoilage are 150 and total good units manufactured are 1500, then normal spoilage rate would be 10.00%.
Normal spoilage% = Normal spoilage / Total unit × 100
= 150/1500 × 100 = 10%.

✅ The correct answer is D.
Cost of Good units will be affected by normal loss.

✅ The correct answer is D.
Variance, if used to alert managers before time of problem is called early warning.

✅ The correct answer is C.
This is a point at which the store keeper should initiate purchase requisition for fresh supply It is reorder level. Re-order level is a level of material at which the storekeeper should initiate the purchase requisition for fresh supplies. When the stock-in-hand comes down to the re-ordering level, it is an indication that an action should be taken for replenishment or purchase.

✅ The correct answer is C.
An inward delivery charges and custom duties are classified as direct material costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production.

✅ The correct answer is D.
Budget, which predicts effect of given level of operations on a cash position is classified as cash budget. 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 A.
Cost of idle time arising due to non availability of raw material is charged to costing profit and loss account. The cost of idle facilities for reasons such as trade depression, shortage of demand, etc. should be written off to Costing Profit and Loss Account.

✅ The correct answer is B.
Most frequently used methods of quantitative analysis include high low method. The high low method and regression analysis are the two main cost estimation methods used to estimate the amounts of fixed and variable costs.

✅ The correct answer is A.
Chances of cost to be considered as variable are more, if the time horizons are long. Time horizon is the length of time over which an investment is made or held before it is liquidated.