Costing - Study Mode

[#481] Which of the following expenditure groups are direct expenses of the business?
Correct Answer

(C) Wages, input vehicle expenses and local taxes

[#482] In marginal costing, contribution is equal to
Correct Answer

(B) Sales - Variable cost

[#483] Match the items of List-I with those of List-II . 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

[#484] . . . . . . . . expenses are excluded from cost.
Correct Answer

(B) Abnormal

[#485] Industrial engineering method is used to analyze relationship between
Correct Answer

(C) input and output

Explanation

Solution: Industrial engineering method is used to analyze relationship between input and output. Industrial engineering method is a physical way of examining the relationship between cost drivers and costs by analyzing the inputs coming into the company, the outputs that are created, and the work that goes into the process.