Costing - Study Mode

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[#851] When the debt turnover ratio is 4, what is the average collection period?

(A) 5 months

(B) 4 months

(C) 3 months

(D) 2 months

Correct Answer

(C) 3 months

[#852] In transport costing . . . . . . . . charges vary more or less in direct proportion to kilometers run.

(A) running

(B) petrol

(C) drivers salary

(D) tax

Correct Answer

(A) running

[#853] Raw material purchased: 1 st January, 600 units @ Rs. 12 per unit 12 th January, 500 units @ Rs. 14 per unit 21 st January, 300 units @ Rs. 13 per unit Raw material issued for manufacture: 3 rd January 300 units 5 th January 124 units 15 th January 250 units 16 th January 300 units Raw material returned to stores from manufacturing department on 14 th January, 50 units. The material is issued on First-in-First out method. The value of material remaining in store on 21 st January will be:

(A) 5,775

(B) 6,100

(C) 6,350

(D) 6,600

Correct Answer

(C) 6,350

[#854] Which one of the following is not correct with reference to standard costing?

(A) Standard costing is a system where predetermined costs are used for control of entire organisation

(B) Standard may be expressed in quantitative and monetary measures

(C) Only adverse variances are investigated intensively

(D) Standard is determined for each element of cost

Correct Answer

(C) Only adverse variances are investigated intensively

[#855] Match the following. List-I List-II a. Labour cost variance 1. Actual hours paid (Standard rate - Actual rate) b. Labour rate variance 2. Standard cost - Actual cost c. Efficiency variance 3. Idle hours × Standard rate per hour d. Idle time variance 4. Standard rate (Standard hours - Actual hours worked)

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

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

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

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

Correct Answer

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