Costing - Study Mode

[#1156] If credit sales for the year is Rs 5,40,000 and Debtors at the end of year is Rs 90,000 the Average Collection Period will be
Correct Answer

(B) 61 days

Explanation

Solution: Rs. 540000 divided by Rs. 90,000 = 6 times per year. Since there were 365 days during the recent year, the average collection period is 365 days divided by the turnover ratio of 6 = 60.8333 days or 61 days.

[#1157] The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs 50,000 and Rs 65,000. If taxed paid during the current year amounted to Rs 70,000 then amount charge from Profit and Loss Account will be:
Correct Answer

(B) Rs 85,000

Explanation

Solution: Amount charged from profit and loss account = Rs. 70000 + Rs. 65000 - Rs. 50000 = Rs. 85000.

[#1158] The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs 25,000 and Rs 35,000. If dividend paid during the current year amounted to Rs 5,000 then profit earned during the year will be:
Correct Answer

(C) Rs 15,000

Explanation

Solution: Profit earned during the year = 5000 + 35000 - 25000 = Rs. 15000.

[#1159] Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called
Correct Answer

(D) regression method

Explanation

Solution: Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called regression method. Regression analysis is a set of statistical processes for estimating the relationships among variables.

[#1160] Line which uses to join observations with lower and highest values of cost driver is called
Correct Answer

(A) straight line

Explanation

Solution: Line which uses to join observations with lower and highest values of cost driver is called straight line.