Costing - Study Mode

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[#646] Cost accounting records both monetary and . . . . . . . . units.

(A) physical

(B) cost

(C) Both A and B

(D) None of these

Correct Answer

(A) physical

[#647] Price earning ratio is useful to whom?

(A) Short-term creditors

(B) Long-term creditors

(C) Shareholders

(D) Both A and B

Correct Answer

(C) Shareholders

[#648] Portion of labour costvariance which is due to the difference between predetermined working days and actual working days is

(A) labour idle time variance

(B) labour calender variance

(C) labour rate variance

(D) labour efficiency variance

Correct Answer

(B) labour calender variance

[#649] Which of the following items would be specifically included in the statement of cash flows constructed in compliance with AS-3?

(A) Conversion of debt to equity

(B) Acquiring an asset through a lease

(C) Operating and non-operating cash flow information

(D) Purchasing a building by giving a mortgage to the seller

Correct Answer

(C) Operating and non-operating cash flow information

[#650] Match the items of List-I with the items of List- II and select the correct answer. List-I List-II a. Golden parachutes 1. The right to purchase a stated number of shares of company stock at today's price in the future. b. Gain sharing 2. An incentive plan engaging employees in a common effort to achieve productivity objectives and share the gains. c. Stock-option 3. Payment companies make in connection with a change in ownership or control of a company. d. Annual bonus 4. Plans designed to motivate the short-term performance of managers, and are tied to company profitability.

(A) a-3, b-1, c-2, d-4

(B) a-1, b-2, c-3, d-4

(C) a-2, b-3, c-1, d-4

(D) a-3, b-2, c-1, d-4

Correct Answer

(D) a-3, b-2, c-1, d-4