Costing - Practice Test | ExamPrepSheets

[#26] A bill of material serves the purpose of . . . . . . . .

(A) material requisition

(B) stores ledger

(C) material issue analysis sheet

(D) None of these

Correct Answer

(A) material requisition

[#27] When is a business unit known to be a profit centre?

(A) If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control

(B) If its management is evaluated not only on revenues and expenses, but also on asset investment

(C) If its management is compensated based on the level of profitability

(D) If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply

Correct Answer

(D) If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply

[#28] The relationship between two financial variables can be expressed in

(A) Pure ratio

(B) Percentage

(C) Rate or time

(D) Either of the above

Correct Answer

(D) Either of the above

[#29] Period costs charged to . . . . . . . .

(A) cost of production

(B) products

(C) period

(D) None of these

Correct Answer

(C) period

[#30] In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.

(A) be less than

(B) be greater than

(C) be equal to

(D) None of these

Correct Answer

(C) be equal to

Costing - Study Mode

[#26] A bill of material serves the purpose of . . . . . . . .

Correct Answer

[#27] When is a business unit known to be a profit centre?

Correct Answer

[#28] The relationship between two financial variables can be expressed in

Correct Answer

[#29] Period costs charged to . . . . . . . .

Correct Answer

[#30] In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.

Correct Answer