Costing - Practice Test | ExamPrepSheets

[#341] Which of the following is a technique of financial statement analysis?

(A) Common-size statement

(B) Comparative statement

(C) Trend analysis

(D) All of the above

Correct Answer

(D) All of the above

[#342] Which of the following statements relating to incentive payments is correct?

(A) In Halsey incentive plan, bonus paid to a worker is equal to 50% of the time saved, divided by the rate per hour

(B) In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time

(C) In Taylor's differential piece rate system, a worker whose output exceeds standard output is paid 100% of piece rate, and a worker whose output falls short of the standard is paid only 50% of piece rate

(D) The Rowan incentive plan is the base of all other incentive payment plans

Correct Answer

(B) In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time

[#343] A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

(A) 9470 units

(B) 9487 units

(C) 9480 units

(D) 9840 units

Correct Answer

(B) 9487 units

[#344] If the present cost of the car is Rs. 1,00,000 residual value at the end of the 5 th year is Rs. 20,000, the monthly depreciation is . . . . . . . .

(A) Rs. 20,000

(B) Rs. 16,000

(C) Rs. 1,333

(D) Rs. 17,333

Correct Answer

(C) Rs. 1,333

[#345] . . . . . . . . budget is the most important budget and it forms the basis on which all the other budgets are built up.

(A) Production

(B) Material

(C) Cash budget

(D) Sales

Correct Answer

(D) Sales

Costing - Study Mode

[#341] Which of the following is a technique of financial statement analysis?

Correct Answer

[#342] Which of the following statements relating to incentive payments is correct?

Correct Answer

[#343] A firm consumes 90,000 units of a certain item of raw material in its production process annually. It costs Rs. 3 per unit, the cost per purchase order is Rs. 300 and the inventory carrying cost is 20% per year. What is the EOQ?

Correct Answer

[#344] If the present cost of the car is Rs. 1,00,000 residual value at the end of the 5 th year is Rs. 20,000, the monthly depreciation is . . . . . . . .

Correct Answer

[#345] . . . . . . . . budget is the most important budget and it forms the basis on which all the other budgets are built up.

Correct Answer