Costing - Study Mode

Show All Answers

[#536] Which of the following statements are true about ratio analys is? 1. Ratio analysis is useful in financial analysis. 2. Ratio analysis is helpful in communication and coordination. 3. Ratio analysis is not helpful in identifying weak spots of the business. 4. Ratio analysis is helpful in financial planning and forecasting.

(A) 1, 2 and 4

(B) 1, 3 and 4

(C) 1, 2 and 3

(D) 1, 2, 3 and 4

Correct Answer

(A) 1, 2 and 4

[#537] Specific price method of valuing material issue is used when . . . . . . . .

(A) materials are purchased for specific job or work order

(B) materials are subject to natural wastage

(C) prices fluctuate

(D) None of these

Correct Answer

(A) materials are purchased for specific job or work order

[#538] Stock verification sheets are maintained to record the results of . . . . . . . .

(A) physical verification

(B) financial control

(C) financial verification

(D) quality verification

Correct Answer

(A) physical verification

[#539] Cost accounting provides detailed information about . . . . . . . . of various products, processes, services and operations.

(A) costs

(B) income

(C) Either A or B

(D) None of these

Correct Answer

(A) costs

[#540] Economic Batch Quantity is an important point to be determined in industries where . . . . . . . . costing is employed.

(A) job

(B) batch

(C) operation

(D) output

Correct Answer

(B) batch