Costing - Study Mode

[#301] If the amount of work certified is less than . . . . . . . . of the contract price, then no profit should be taken to Profit & Loss Account.
Correct Answer

(B) 25%

[#302] Contracts where all agreed costs are recovered is known as:
Correct Answer

(C) Cost plus contract costing

[#303] Match the items of List-I with those of List-II and indicate the correct answer List-I List-II a. Acid test ratio 1. Profitability analysis b. Debt service coverage ratio 2. Activity analysis c. Debt equity ratio 3. Liquidity analysis d. Stock turnover ratio 4. Long-term solvency analysis
Correct Answer

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

[#304] Material mix variance = standard cost of standard mix - . . . . . . . .
Correct Answer

(C) Standard cost of actual mix

[#305] Administration and management overheads are realized as a percentage
Correct Answer

(D) Factory cost