Costing - Study Mode

[#901] Assertion (A): Debt-equity ratio indicates the long-term solvency of a company. Reason (R): It measures the ability of the company to pay-off its long-term liabilities. Select the correct answer.
Correct Answer

(A) Both (A) and (R) are correct, and (R) is the correct reason for (A)

[#902] Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .
Correct Answer

(C) Process costing

[#903] The total variable cost . . . . . . . . in total proportion to output.
Correct Answer

(A) increases

[#904] Under which of the cost differences international trade would not take place?
Correct Answer

(A) Equal

[#905] The difference between fixed and variable cost has a special significance in the preparation of:
Correct Answer

(A) flexible budget