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Sunday, 12 April 2020

The decision model to calculate optimal quantity of inventory to be ordered is called


The accounting approach in which expected benefits exceed the expected costs is classified as:

Cost-benefit approach                                
Cost approach
Accounting approach                                                  
Benefit approach

One of the most important tools in cost planning is

Direct cost                                                                     
Cost sheet
Budget                                                            
Marginal costing

A costing system is used in situation where single homogenous product is produced

Job order costing                                                         
Process costing
Absorption costing                                                      
Product costing

The main purpose of cost accounting is:

Maximize profit                                             
Provide information to management to make decision
Help in inventory valuation                           
Aid in the fixation of selling prices

Which of the following is an effective technique of cost control

Budgetary control                                                        
Uniform costing
Standard costing                                          
Marginal costing

A costing system is used in situation where single homogenous product is produced

Job order costing                                                         
 Process costing
Absorption costing                                        
Product costing

If a company wishes to establish a factory overhead budget system in which estimated cost can be derived directly from estimates of activity level, it should prepare a:

Cash budget                                                                 
Master budget
Fixed budget                                                                 
Flexible budget

Unfavorable variances are the result of management use of:

Ideal standards                                             
 Efficiency standards                     
Basic standards                                              
Attainable standards

Calendar variance is a sub variance of

Expenditure variance                                                  
Volume variance
Efficiency variance                                       
Variable overhead cost variance

Which variance cannot exit under direct costing :

Production volume variance                       
Price variance                                 
Efficiency variance                                       
Quantity variance

The storekeeper should initiate a purchase requisition when stock reaches:

Minimum level                                              
Re-order level
Maximum level                                            
Average level

The type of spoilage that should not affect the recorded cost of inventories is

Normal spoilage                                                           
Seasonal spoilage
ab normal spoilage                                       
Standard spoilage

The budget which commonly takes the form of budgeted profit and loss and balance sheet

Cash budget                                                                  
Master budget                
Flexible budget                                              
Fixed budget

According to which of the methods of pricing, issues are close to current economic values
FIFO                                                                                 
Average cost method     
Specific identification                                    
LIFO

The decision model to calculate optimal quantity of inventory to be ordered is called

Efficient order quantity                               
Rational order quantity 
Optimized order quantity                             
Economic order quantity

Which of the following is not a relevant cost

Period cost                                                                    
Sunk cost
 product cost                                                 
Opportunity cost

When the FOH control account has a closing debt balance factory overhead is

Over-absorbed                                                              
Fixed                    
Variable                                                         
Under-absorbed

If there is no change in fixed cost at different levels of output

Marginal cost > Differential cost                             
Marginal cost < Differential cost
Marginal cost and Differential cost are same          
None of the above

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Material requisition is a document that supports the requirement of the material. This document is sent to store in charge and approved by:

Material requisition is a   document   that supports the   requirement   of the material. This   document   is sent to store in charge and...