Costing Objective Questions and Answers

1093. Tender is an _______.

1094. The basis for the payment of cash by contractee under contract is ________.

1095. If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be

1096. When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is ________.

1097. Match the items in List-I with the items in List-II and indicate the correct answer.

List-I	List-II
a. Debt-equity ratio	1. Net profit before interest and tax/Interest on long-term loans
b. Proprietary ratio	2. Equity share capital + Reserves/Preference share capital + Interest bearing finance
c. Interest coverage ratio	3. Long-term debts/Shareholder's Funds
d. Capital gearing ratio	4. Shareholder's Funds/Total Assets

A. a-1, b-2, c-3, d-4

B. a-3, b-4, c-1, d-2

C. a-3, b-4, c-2, d-1

D. a-2, b-3, c-4, d-1

Discussion

1098. . . . . . . . . includes financial and cost accounting, tax planning and tax accounting.

A. Financial accounting

B. Cost accounting

C. Management accounting

D. None of these

Discussion

1099. In plotting of cost functions, level of activities according to which charged cost is represented on

Costing MCQs