When output of earlier process is transferred at a profit to the subsequent process, it is ________.

A) inter departmental profit
B) abnormal gain
C) inter process profit
D) manufacturing profit
✅ ANSWER: C
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.

Insufficient working capital results in __________.

A) Block of cash
B) Loosing interests
C) Lack of production
D) Lack of smooth flow of production
✅ ANSWER: D
Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.

Use of variables to signal whether strategies are effective or ineffective is classified as

A) evaluating strategy
B) performing strategy
C) warned strategy
D) weighted strategy
✅ ANSWER: A
Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy. Strategy evaluation means collecting information about how well the strategic plan is progressing.

Procedure of assigning direct cost to any cost abject is classified as

A) sales allocation
B) cost tracing
C) cost allocation
D) sales tracing
✅ ANSWER: C
Procedure of assigning direct cost to any cost abject is classified as cost allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.