Question 47
A predetermined cost which is calculated from management’s standards of efficient operation and the relevant necessary expenditure is called :
(A) Standard Cost (B) Historical Cost (C) Sunk Cost (D) Implicit cost
Answer: (A) Standard Cost
Question 48
Piece rate system of Wage Payment may be usefully employed where :
(A) Production is standardised and repetitive in nature (B) Aim is continuous maximum production (C) Workers continue at the same job for long periods (D) All of the above
Answer: (D) All of the above
Question 49
The sub-components of Material Usage Variance are :
(A) Material Mix Variance, Material Yield Variance (B) Material Price Variance, Labour Cost Variance (C) Labour Cost Variance, Labour Mix Variance (D) Only Material Price Variance
Answer: (A) Material Mix Variance, Material Yield Variance
Question 50
Marginal costing technique is used to take important decisions like :
(A) Make or buy decision (B) Shut down decision (C) Product Pricing and Exploring new market decision (D) All of the above
Answer: (D) All of the above
Question 51
Which of the following is a technique of material control ?
(A) Economic order quantity (B) ABC (C) Perpetual inventory (D) All of the above
Answer: (D) All of the above
Question 52
The decision of the Management whether to manufacture a component or product in the organisation’s own factory or bought from the outside suppliers is called as :
(A) Shut down Decision (B) Product mix Decision (C) Make or buy decision (D) All of the above
Answer: (C) Make or buy decision
Question 53
CVP analysis is based on the assumption that :
(A) Cost can be categorised into fixed and variable components (B) Selling price per unit is constant (C) Costs and Revenue are influenced by the volume of output and sales (D) All of the above
Answer: (D) All of the above
Question 54
Which of the following is not a type of budget ?
(A) Fixed Budget (B) Responsibility Budget (C) Flexible Budget (D) Cash Budget
Answer: (B) Responsibility Budget