Costing Objective Questions and Answers

477. Standard cost is a . . . . . . . . cost.

478. Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?

479. Match the following.

List-I	List-II
a. Cost control purposes	1. . . . . . . . . is a predetermined cost
b. Standard cost	2. Responsibility accounting fixes responsibility for . . . . . . . .
c. Integrates	3. Cost accounting guides future . . . . . . . .
d. Production policies	4. Budgeting system . . . . . . . . key managerial functions

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

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

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

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

Discussion

480. Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?

A. Perpetual inventory

481. Capital gearing ratio is ___________.

A. Market test ratio

B. Long-term solvency ratio

C. Liquid ratio

D. Turnover ratio

Discussion

482. Which of the following is usually as long-term budget?