Costing - Study Mode
[#1051] . . . . . . . . budget is designed to remain unchanged irrespective of the volume of output or turnover attained.
Correct Answer
(B) Fixed
[#1052] Calculate the labour turnover rate according to Separation method from the following: No of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme
Correct Answer
(A) 4.55%
Explanation
Solution: Separation method = No of worker separated during the period/Average no of workers at same period × 100 No of worker separated during the period = 25 Average no of workers = (500+600)/2= 550 ∴25/ 550 × 100 =4.55%
[#1053] A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan?
Correct Answer
(B) Rs. 540
[#1054] Overhead refers to:
Correct Answer
(B) All Indirect costs
Explanation
Solution: Overhead refers to all Indirect costs. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead. But some overhead costs can be directly attributed to a project and are direct costs.
[#1055] Allotment of whole item of cost to a cost centre or cost unit is known as:
Correct Answer
(B) Cost Allocation
Explanation
Solution: Allotment of whole item of cost to a cost centre or cost unit is known as Cost Allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.