Costing - Study Mode

[#796] If the beginning balance in the raw materials inventory account for the month was Rs. 25,000, the ending balance was Rs. 22,000 and material used during the month was Rs. 1,30,000. What is the amount of materials purchased during the month?
Correct Answer

(C) Rs. 1,27,000

[#797] Abnormal cost is . . . . . . . .
Correct Answer

(A) uncontrollable

[#798] Assertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.
Correct Answer

(C) Both (A)and (R) are incorrect

[#799] In ratio analysis, 'time series analysis' refers to
Correct Answer

(C) the comparison of financial ratios over a period of time to access the direction of change and the financial performance of the firm

[#800] Match the following. List-I List-II a. Leverage ratio 1. Short-term solvency b. Liquidity ratio 2. Earning capacity c. Turnover ratio 3. Relationship between debt and equity d. Profitability ratio 4. Efficiency of asset management
Correct Answer

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