Plant utilization budget and Manufacturing overhead budgets are types of

Cost Budget

A type of costing system in which only variable costs are recognized as product costs is called as

Variable

Cost which can be identified with goods produced or purchased for resale is named as

Product Cost

Break-even analysis is also called

CVP

Output and sales 50,000 units with sale price of Rs. 15/unit. Material & Labor cost per unit Rs.7 &
Variable Rs. 3/unit. Fixed Rs. 70,000 & other fixed overheads Rs. 90,000. Calculate Net income
under Marginal costing?

Rs. 90,000

Activity-based costing will provide better accuracy when allocating costs than a manufacturer's
machine hours when its products and customers are __________ diversified.

More

Where key factor is present, from available alternatives, best project must be selected on the basis
of

Contribution per Key Factor

Which of the following is not a material pricing method?

Ved Analysis

Which of the following is not a Material control technique?

Maintaining Stores Ledger & Bin Card

_________ cost is the amount of benefits foregone from the second-best alternative decision/action.

Opportunity

The examples of GHG gases are_____

Co2, Co And Methane

A budgeting process which demands each manager to justify his entire budget in detail from
beginning is
Zero Base Budgeting

The cost that has been incurred in the past _____

Sunk

___________was signed in 2005 between 41 countries to control the GHG emission

Kyoto Protocol

Marginal cost is the aggregate of prime cost and -----------------

Variable Overheads

ABC helps managers make improved _________

All Of The Above

Which of the following cost should be considered for decision making

Incremental Cost

What is the essential idea of costing concept?

Cost Ascertainment.

_____________ takes into account the notional cost that may be required to acquire a new employee
in place of the present one.

The Replacement Cost Approach

While making make or buy decision under marginal costing, external purchase price of the articles
must be compared with:

Its Variable Cost

The technique of marginal costing is based on classification of cost into ------

Fixed And Variable Cost

A company has fixed costs of Rs. 50,000 and variable costs per unit of output of Rs. 8. If its sole
product sells for Rs. 18, what is the breakeven quantity of output?

5000

Which of the following constitutes a significant proportion in the computation of total cost of a
product in steel industry?

Material Cost

________ is the first step of budgetary system and all other budgets depends on it.
Sales Budget

The process of material handling involves:

All Of The Above.

Warehouse expense is a part of which cost/ overhead?

Distribution Overhead

Cost of any finished product can be calculated on the basis of

All The Above

While preparing sales budget, which of the following factors are considered?

Environmental Factors

Following information is available of GGSS Ltd. for year ended Dec 2020: Sales (units) 1000 (Rs.3/
unit), Production (units) 1500, Variable manufacturing- Rs 800, Fixed manufacturing- Rs 600,
Variable office expenses- Rs 900, Fixed office expenses- Rs 300, What will be amount of profit
earned during the year using the absorption costing technique?

1167

The cost which refers to the value of what you have to give up in order to choose something else is
called as?

Opportunity Costs

Shut down cost is:

Unavoidable Fixed Cost

The cost which can be carried forward to next accounting period as part of inventory cost is called

Expired Cost

As per x analysis, estimated sales for desired profit (in amount) is____________________?

Fc+ Profit/Contribution Margin Ratio

The Countries which have signed Kyoto Protocol are called_____

Annexured Countries

The type of cost which changes with the change in alternative course of decision/actions whereas
irrelevant cost remains constant across all the alternative course of decision/ actions

Relevant

The scare factors are also known as

Key Factor

Workers who leave the organization during a specific time period are taken into consideration for
calculating the labor turnover rate by____________

Separation Method

________ is stated as a budget which is made to change as per the levels of activity attained.

Flexible Budget

Abacus Company uses activity-based costing and has the following activity cost pools and estimated
overhead cost for each pool: Machine related Rs3,00,000 Handling material Rs.2,60,000 Processing
purchase orders Rs.7,50,000 General factory Rs.6,00,000 The amount of total estimated overhead is:

19, 10,000

When should a segment be dropped?

Only When The Decrease In Total Contribution Margin Is Less Than The Decrease In Fixed Cost

_______ is designed after assessment of the volume of output to be produced during budget period.

Cost Budget

The process of budgeting helps in the control of

All Of The Above

The expected overhead cost for Neel Construction ltd of a particular part cost pool was R.s.5, 60,000 and
the expected activity was 5,000 parts. The actual overhead cost for the cost pool was Rs.480, 000 at an
actual activity of 6,000 parts. The activity rate for that cost pool was:

Rs112 Each Part

Expenses in the form of salary, wages, fringe benefits, and other repetitive expenses are classified
as______ as per Historical Cost Model of HRA

Revenue Expense

The full form of GHG is______

Green House Gases

Minimum level of stock is computed as:

Re-Order Level – (Average Usage * Average Lead Time)

Key factor is also called as:

All Of These.

Overhead allocation by using ABC mostly leads to__

Changes Overhead Costs From High-Volume Products To Low-Volume Products

Which of the following is one of the two approaches used to analyze data in the decision to keep or
discontinue a segment?

Comparing Contribution Margins And Fixed Costs

When fixed cost is deducted from contribution, the balance will be--------

Profit

A shop sells wedding dresses. The cost of each dress is comprised of the following: Selling price of
Rs.1,000 and variable (flexible) costs of Rs.400. Total fixed (capacity-related) cost for Shop is Rs.90,000.
What is the contribution margin per dress?

600

Costs that do not change when the activity base fluctuates are known as?

Fixed Costs

The cost which cannot be carried forward to next accounting period is called

Expired Cost

Given sales = Rs.1,50,000, Fixed costs = Rs.30,000, Profit =Rs. 40,000. The variable cost is Rs………….

80000

An increase in the variable cost-----------

Decreases Pv Ratio

Marginal cost is the ……….cost of producing an additional unit of output

Variable

A mechanized firm produces Product X, Royalty paid on sales is Rs45,000 and design charges paid for
the product is Rs3500. Compute the Direct Expenses for the firm.

48500

The break-even point can be defined as?

The Level Of Activity At Which There Is Neither Profit Nor Loss

Break even capacity----------------------?

Breakeven Sales In Rupees/Normal Sales In Rupees

The break-even point in units is represented by the equation?

Fixed Costs / Contribution Per Unit

To find the break-even in Rupees, you have to divide the fixed cost by ____________?

Contribution Margin Ratio

_______ is prepared for single level of activity and single set of business conditions.

Fixed Budget

As per ABC cost categorizations, building maintenance and safety are categorised as_______

Facility-Level Costs.

A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long distance charges,
would be classified as a?

Mixed Cost

__________ contains the picture of total plans during the budget period and it comprises information
relating to sales, profit, cost, production etc.

Master Budget

XY ltd. uses activity-based costing for Product M and Product N. The total estimated overhead cost for
the parts administration activity pool was Rs.7,50,000 and the expected activity was 3000 part types. If
Product N requires 1400 part types, the amount of overhead allocated to product N for parts
administration would be

Rs. 350000

Joint Implementation Programme as per Kyoto Protocol is applicable to _______

Developed Countries

When sales are Rs.30000 and P/V ratio is 20% then contribution will be--------

6000

If actual units produced are lower than the budgeted level of production which of the following types of
cost would you expect to be lower than the budget?

Total Variable Costs

___________ method of HRA recognizes an individual’s expected economic value to the enterprise
during his remaining service period.

Present Value Of Future Earnings Method

Which of the following is a limitation of activity-based costing?

The Benefits Obtained From Abc Might Not Justify The Costs.

________ is stated as a budget which is made to change as per the levels of activity attained.
Flexible Budget

A manufacturing firm of glass products produces on average profit of Rs. 2 per unit, selling at Rs. 12
per unit. The firm sells 50,000 units at 50% of potential capacity. The cost of sales is- Direct materials-
Rs. 3.5/piece, Direct labour cost Rs. 1.5/piece, Factory expenses (variable)Rs. 2.5/piece, Selling expenses
(variable) Rs. 0.30/piece, Total fixed cost is Rs. 1,00,000. It finds an offer for a further 30% of his
capacity. What minimum price you would endorse for acceptance to confirm a total profit of Rs.
2,00,000?

Rs. 10.80

As per CVP analysis, estimated sales for desired profit (in amount)
is____________________?

Fc+ Profit/Contribution Margin Ratio

As per ABC cost categorizations, direct materials and direct labour are categorized as__________

Unit-Level Costs.

Selling and Distribution overhead is absorbed on the base of ____________________

percentage on selling price

In marginal costing stock of finished goods is valued at ------

Lower Than The Value Under Absorption Costing

________ cost is the traceable cost for a particular product

Direct