Costing - Study Mode

[#201] Responsibility accounting aims to
Correct Answer

(B) Ensure costs become the responsibility of a specific manager

[#202] In process costing, the abnormal loss is treated as . . . . . . . . cost and written off to profit & loss account.
Correct Answer

(B) period

[#203] Material price variance = Actual usage (. . . . . . . .)
Correct Answer

(B) Standard unit price - actual unit price

[#204] A company proposes to introduce a new product in the market. The company wants to maintain P/V ratio at 25%. If variable cost of the product is Rs. 300, then what will be the selling price?
Correct Answer

(D) Rs. 400

[#205] What is the amount of fixed cost if the margin of safety is Rs. 80,000 profit is Rs. 20,000, and sales is Rs. 3,00,000?
Correct Answer

(C) Rs. 55,000