Costing - Study Mode
[#941] Assertion (A): From the marginal costing approach point of view, the marginal cost is compared with the purchase price. Reason (R): If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.
Correct Answer
(B) (A) is correct, but (R) is incorrect
[#942] Defectives are that portion of production which can be . . . . . . . . at some extra cost of re-operation.
Correct Answer
(B) rectified
[#943] Printers use . . . . . . . . costing.
Correct Answer
(C) Job
[#944] "Calculate re-order level from the following: Safety stock: 1000 units Consumption per week: 500 units It takes 12 weeks to reach material from the date of ordering"
Correct Answer
(D) 7000 units
Explanation
Solution: Re-order level = Safety stock + Total consumption = 1000 + (500 × 12) = 1000 + 6000 = 7000 units.
[#945] "From the following information, calculate the extra cost of material by following EOQ: Annual consumption = 45000 units Ordering cost per order = Rs 10 Carrying cost per unit per annum = Rs 10 Purchase price per unit = Rs 50 Re-order quantity at present = 45000 units There is discount of 10% per unit in case of purchase of 45000 units in bulk"
Correct Answer
(D) Rs. 2,990