Costing - Study Mode
[#611] Total costs incur in a production process, is divided by total number of output units to calculate the
Correct Answer
(D) unit costs
Explanation
Solution: Total costs incur in a production process, is divided by total number of output units to calculate the unit costs. A unit cost is a total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service.
[#612] If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
Correct Answer
(C) 1300 units
Explanation
Solution: Equivalent units in current period = Beginning work in process equivalent units + Work done in current period equivalent units - Ending work in process equivalent units = 2500 + 3800 - 5000 = 1300 units
[#613] When the completion stage of a contract is less than $$frac{1}{4},$$ the total expenditure on the contract is transferred to . . . . . . . . account.
Correct Answer
(A) Work-in-progress
[#614] Match the following. List-I List-II a. Operating profit 1. Capital employed = . . . . . . . . + Preference share capital b. Liquid liabilities 2. . . . . . . . . = Gross profit - Operating expenses c. Capital employed 3. Quick assets = Quick ratio × . . . . . . . . d. Equity share capital 4. Fixed assets ratio = Fixed assets ÷ . . . . . . . .
Correct Answer
(A) a-2, b-3, c-4, d-1
[#615] A variable such as activity that causes cost over a given time is
Correct Answer
(B) cost behaviour