Costing - Study Mode

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[#1181] Profits can be increased by 1. decreasing the selling price per unit. 2. increasing the selling price per unit. 3. decreasing the volume of sales. 4. increasing the volume of sales. 5. decreasing the fixed or variable expenses. 6. increasing the fixed or variable expenses. 7. giving more weightage for products having higher P/V ratio. 8. giving less weightage for products having higher P/V ratio. Select the correct answer

(A) 1, 3, 5 and 7

(B) 2, 4, 6 and 8

(C) 2, 4, 5 and 7

(D) 1, 3, 6 and 8

Correct Answer

(C) 2, 4, 5 and 7

[#1182] If the contract is 50% complete, which of the following amount of profit is normally credited?

(A) 50% of the estimated profit

(B) Estimated profit amount

(C) Two-third of the profit earned multiplied by cash ratio

(D) None of these

Correct Answer

(C) Two-third of the profit earned multiplied by cash ratio

[#1183] In transportation costing a composite unit such as . . . . . . . . is used.

(A) passenger mile/km or Ten kilometer

(B) per km

(C) per passenger

(D) per stop

Correct Answer

(A) passenger mile/km or Ten kilometer

[#1184] Study the following transactions I. Raising of short-term loans II. Goods purchased for cash III. Payment of bonus in the form of shares IV. Issue of shares in lieu of raw materials The flow of funds is

(A) I, II, III and IV

(B) II, III and IV

(C) III and IV

(D) Only IV

Correct Answer

(B) II, III and IV

[#1185] Which of the following is not a cash outflow?

(A) Increase in creditors

(B) Increase in debtors

(C) Increase in stock

(D) Increase in bills receivable

Correct Answer

(A) Increase in creditors