Costing - Study Mode

[#76] The contract cost is used in-
Correct Answer

(A) Ship building

[#77] Indicate the correct option as regards the sources of funds for a funds flow statement from the following 1. Increase in working capital. 2. Decrease in working capital. 3. Writing-off the intangible/fictitious assets. 4. Issuing equity shares for acquisition of a building for office. 5. Charging depreciation on fixed assets. Select the correct answer
Correct Answer

(B) 2, 3 and 5

[#78] Re-ordering level = Maximum consumption × . . . . . . . .
Correct Answer

(C) Maximum re-order period

[#79] Which of the following is not a feature of budgetary control?
Correct Answer

(D) A statement of budget and forecasts

[#80] Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as
Correct Answer

(C) incremental revenue allocation method

Explanation

Solution: Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as incremental revenue allocation method. The ranking of the individual products in the suite determines the revenues allocated to them.