Tuesday, 12 November 2019

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


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                                                            

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

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