Costing - Study Mode

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[#1031] A responsibility centre in which manager is responsible for cost only, is known as

(A) Cost Centre

(B) Profit Centre

(C) Investment Centre

(D) All of these

Correct Answer

(A) Cost Centre

[#1032] In . . . . . . . . costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year:

(A) Multiple

(B) Process

(C) Operation

(D) Single

Correct Answer

(C) Operation

[#1033] The concept of budget that requires all levels to work from scratch is

(A) flexible budget

(B) total budget

(C) master budget

(D) zero base budget

Correct Answer

(D) zero base budget

[#1034] Match the following. List-I List-II a. Performance budgeting 1. Fixed budget b. Zero base budgeting 2. Production oriented c. Summary of all functional budgets 3. Jimmy Carter d. Remain unchanged irrespective of level of activity actually attained 4. Master budget

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

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

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

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

Correct Answer

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

[#1035] Depreciation is . . . . . . . . expenditure.

(A) fixed

(B) variable

(C) adjustable

(D) semi-variable

Correct Answer

(D) semi-variable