Costing - Study Mode

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[#126] Match the items in List-I with the items in List-II and indicate the correct answer. List-I List-II a. Debt-equity ratio 1. Net profit before interest and tax/Interest on long-term loans b. Proprietary ratio 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance c. Interest coverage ratio 3. Long-term debts/Shareholder's Funds d. Capital gearing ratio 4. Shareholder's Funds/Total Assets

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

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

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

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

Correct Answer

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

[#127] Inventory turnover in days = Days during the period ÷ . . . . . . . .

(A) inventory turnover ratio

(B) material consumed during the period

(C) cost of average stock during the period

(D) None of these

Correct Answer

(A) inventory turnover ratio

[#128] The statement prepared under process costing is called

(A) cost of goods sold statement

(B) income statement

(C) cost of production report

(D) variance statement

Correct Answer

(C) cost of production report

[#129] Which aspect of business is affected the most by implementing JIT?

(A) Sales

(B) Inventory

(C) Manpower requirement

(D) Total maintenance

Correct Answer

(B) Inventory

[#130] If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be

(A) 3

(B) 0.5003

(C) 0.7003

(D) 2

Correct Answer

(B) 0.5003