Costing - Study Mode

[#551] ________ is a preventive function.
Correct Answer

(B) Costcontrol

Explanation

Solution: Cost control is a preventive function because it ascertains the cost before its occurrence.

[#552] Operating costing is more suitable for ________ industries
Correct Answer

(B) Services

Explanation

Solution: Operating costing is more suitable for Services industries. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.

[#553] Given below are two statement. one labelled as Assertion (A) and other as Reason (R) : Assertion (A): Cost accounting is complementary to financial accounting. Reason (R): The result of cost accounting are not trustworthy. Choose the correct answer
Correct Answer

(C) (A) is true but (R) is false

[#554] Product A requires 10 kg of material at the rate of Rs. 5 per kg. The actual consumption of material for the manufacturing of product A comes to 12 kg of material at the rate of Rs. 6 per kg. Direct material cost variance is
Correct Answer

(B) Rs. 22 (unfavourable)

[#555] Cash budget is based on
Correct Answer

(B) future estimates