Costing - Study Mode

[#256] Stage in manufacturing cycle at which journal entries are made in system of accountancy is known as
Correct Answer

(D) trigger point

Explanation

Solution: Stage in manufacturing cycle at which journal entries are made in system of accountancy is known as trigger point. Trigger points are established to align with a company's Vital Factors, the specific, key indicators of a business' health.

[#257] If required rate of return is 12% and per unit cost of units purchased is $35, then relevant opportunity cost of capital will be
Correct Answer

(C) $4.20

Explanation

Solution: Relevant opportunity cost of capital = Cost of units purchased × Rate of return = $35 × 12% = $4.20

[#258] Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as
Correct Answer

(C) lean accounting

Explanation

Solution: Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as lean accounting. Lean accounting is a financial management approach that supports the streamlined processes of lean manufacturing.

[#259] Telephone expense is . . . . . . . . expense.
Correct Answer

(B) semi-variable

[#260] If the total cost is Rs. 260 and the total variable cost is Rs. 60, what will be total fixed cost if output is (i) 100 units and (ii) 200 units?
Correct Answer

(A) Rs. 200 and Rs. 200