Costing - Practice Test | ExamPrepSheets

[#641] Value of normal loss is charged to ________.

(A) other good product

(B) trading a/c

(C) profit and loss a/c

(D) costing profit and loss a/c

Correct Answer

(A) other good product

Explanation

Solution: Value of normal loss is charged to other good product. The value of normal loss is assessed on the basis of the production cost with which the profit and loss account is charged.

[#642] . . . . . . . . costing is applicable to printers.

(A) Process

(B) Batch

(C) Multiple

(D) Job

Correct Answer

(D) Job

[#643] Which of the following measures the best operating performance?

(A) Ratio of return on total assets

(B) Ratio of return of fixed assets

(C) Ratio of return on shareholder's equity

(D) All of the above

Correct Answer

(A) Ratio of return on total assets

[#644] General profitability ratios are on the basis of

(A) Investments

(B) Sales

(C) Both A and B

(D) None of the above

Correct Answer

(B) Sales

[#645] Where the work is undertaken to Customer's special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

(A) job

(B) batch

(C) operation

(D) output

Correct Answer

(A) job

Costing - Study Mode

[#641] Value of normal loss is charged to ________.

Correct Answer

Explanation

[#642] . . . . . . . . costing is applicable to printers.

Correct Answer

[#643] Which of the following measures the best operating performance?

Correct Answer

[#644] General profitability ratios are on the basis of

Correct Answer

[#645] Where the work is undertaken to Customer's special requirements and each order is of comparatively short-duration, it is called . . . . . . . . costing.

Correct Answer