$36,000
$46,000
$56,000
$14,000
✅ The correct answer is D.
Flexible budget = Actual result – Flexible budget amount
= $25000 – $11000 = $14,000
Flexible budget = Actual result – Flexible budget amount
= $25000 – $11000 = $14,000
Costing mcqs
Capital gearing ratio is ___________.
Market test ratio
Long-term solvency ratio
Liquid ratio
Turnover ratio
✅ The correct answer is B.
Capital gearing ratio is Long-term solvency ratio. The term capital gearing refers to describe the relationship between fixed interest and/or fixed dividend bearing securities and the equity shareholders’ fund.
Capital gearing ratio is Long-term solvency ratio. The term capital gearing refers to describe the relationship between fixed interest and/or fixed dividend bearing securities and the equity shareholders’ fund.
If number of units are 3000 and per unit price is $500, then flexible budget variable will be
$1,500,000
$2,500,000
$3,500,000
$4,500,000
✅ The correct answer is A.
Flexible budget variable = Number of units × per unit price
= 3000 × $500 = $1,500,000
Flexible budget variable = Number of units × per unit price
= 3000 × $500 = $1,500,000
Broad’s average use to assign cost of revenue to cost objects will be classified as
refined costing system
refined selling system
undefined costing
defined selling system
✅ The correct answer is A.
Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system. A refined costing system reduces the use of broad averages for assigning the cost of resources to cost objects (such as jobs, products, and services) and provides better measurement of the costs of indirect resources used by different cost objects no matter how differently various cost objects use indirect resources.
Broad’s average use to assign cost of revenue to cost objects will be classified as refined costing system. A refined costing system reduces the use of broad averages for assigning the cost of resources to cost objects (such as jobs, products, and services) and provides better measurement of the costs of indirect resources used by different cost objects no matter how differently various cost objects use indirect resources.
Subtracted flexible budget amount can form an actual result to calculate
unstated budget variance
flexible budget variance
constant budget variance
static budget variance
✅ The correct answer is B.
Subtracted flexible budget amount can form an actual result to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.
Subtracted flexible budget amount can form an actual result to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.
Differential piece wages means _______.
different wages for different level of performance
different wages for different time consumed
different wages for different level of output
different wages for different types of industries
✅ The correct answer is A.
Differential piece wages means different wages for different level of performance. A differential piece-rate system is a method of wage payment in which after tests have set a standard time for any task assigned the worker gets a high piece rate for completing the job within the allotted time and lower piece rate for completing the job beyond the allotted time.
Differential piece wages means different wages for different level of performance. A differential piece-rate system is a method of wage payment in which after tests have set a standard time for any task assigned the worker gets a high piece rate for completing the job within the allotted time and lower piece rate for completing the job beyond the allotted time.
Perpetual inventory system involves __________
bincard and stores ledger
bill of material and material requisition
purchase requisition and purchase order
inward and outward invoices
✅ The correct answer is A.
Perpetual inventory system involves bincard and stores ledger. Perpetual Inventory System keeps a record of every now and then of materials. It comprises of Bin Card and Stores Ledger, to keep track of various items.
Perpetual inventory system involves bincard and stores ledger. Perpetual Inventory System keeps a record of every now and then of materials. It comprises of Bin Card and Stores Ledger, to keep track of various items.
“How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year? Selling price – Rs 6 per unit Variable production cost – Rs 1.20 per unit Variable selling cost – Rs 0.40 per unit Fixed production cost – Rs 4 per unit Fixed selling cost – Rs 0.80 per unit Budgeted production and sales for the year are 10,000 units.”
2,500 units
9,833 units
10,625 units
13,409 units
✅ The correct answer is D.
Supplies, plant maintenance, plant rent, plant insurance and cleaning labour comes under which type of costs?
labour costs
factory overhead costs
finished costs
manufacturing costs
✅ The correct answer is B.
Supplies, plant maintenance, plant rent, plant insurance and cleaning labour comes under factory overhead costs. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.
Supplies, plant maintenance, plant rent, plant insurance and cleaning labour comes under factory overhead costs. Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials. Factory overhead is normally aggregated into cost pools and allocated to units produced during the period.