In material costing input-output ratio is the ratio of

Material cost to production

Labor cost to production

Quantity of input material to production

none of these

Following information is available of GGSS Ltd for year ended Dec 2020 sales (units) 1000 (rs 3/unit),
Production(units)1500, Variable manufacturing-Rs800 Fixed manufacturing Rs 300

What will be the amount of profit earned during the year using the absorption costing technique

Rs 967

Rs 1900

Rs 1167

Rs 999

Calculate profit under variable costing technique when number of units produced is 100000 units,
selling price is Rs 10 per unit , variable cost is Rs 6 per unit and fixed costs are Rs 2, 00, 000

Rs 2,00,000

Rs 8,00,000

Rs 6,00,000

Rs 1,00,000

The maximum re-order period is 8 weeks and re-order level is 1600 units , then find out maximum
consumption?

12600 units

1600 units

200 units

None of the above

There is no complication of over absorption of factory overheads or even their under absorption in
the case of _ costing

Full costing

Absorption costing

Variable Costing

Conventional Costing
The principle underlying the variable costing is that the fixed manufacturing overheads are ----

Non inventoriable costs

Period cost

To be deducted in the year in which they are incurred

All of these

A company manufactures a single product for which cost and selling price data are as follows :
Selling price per unit – Rs 6 variable cost per unit – Rs 4 Fixed cost for a period – Rs 20,000 Budgeted
sales for a period-15000 units. The margin of safety is

15000 units

10000 units

5000 units

2000 units

Product X generates a contribution to sales ration of 30% Fixed costs directly attributable to X
amount to X amount to 75000 per month. Calculate the sales revenue required to achieve a
monthly profit Rs 15000

2 00 000

2 76 000

3 00 000

2 50 000

An increase in selling price per unit will lead to

A decrease in profits

An increase in contribution

A reduction in contribution

A decrease in P/V ratio

Compute the machine hour rate. Cost of machine Rs 32000 estimated scrap value, Rs 2000, Working
life is 11000 hours, repair and maintenance. Rs 3500, power consumed is Rs. 0.50 per unit. Standing
charges Rs per hour. Machine consumes 11 units of power per hour

Rs5.5

Rs 10.55

Rs 8.55

Rs 3.30

The companies average cost per unit to make inhouse component is more than cost to buy from
outside. Which of the following should be decision of the company1. Produce inhouse, if variable
cost to make the component is less than buying from outside

Ii Buy from Outside

Iii Buy from outside if variable cost to produce inhouse is more than outsourcing cost

VI. Make inhouse

1. I & III
2. II & III
3. I & IV
4. III & IV

Factory overhead should be absorbed on the basis of

Relationship to cost incurred

Direct labour hours

Direct Labour Cost

Machine hours

A Statement of probable events are termed as

Budgets

Forecast

Standards

Actual
In product mix decision most important factor to be considered is ?

Contributions per unit

Contributions per unit of key resource

Profit per units

Revenue of each product

Annual requirement is 100000 units, unit price S order cost 20 per order. Carrying cost 1 per unit and
lead time is 2 week. The economic order quantity would be

1000 units

2000 units

800 units

10000 units

The factor which limits the volume of output or level of activities of an undertaking at a particular
point of time or over a period is termed as

Contribution ratio

PV ratio

Key factor

Estimated factor

The excess of the actual sales revenue (ASR) over the break-even sales revenue (BESR) is known as

Margin of loss

Margin of profit

Margin of Safety

Margin of Sales

The amount at any given volume of output by which aggregate costs are charged if the volume of
output is increases or decreased by one unit is termed as

Standard costing

Fixed cost

Marginal Cost

Direct Cost
Break even point is computed on the basis of the relationship between the fixed cost and the

Contribution margin

Loss margin

Cost margin

All of these

As per flexible budget sales is rs 5 00 000 CoGS is Rs 3 00 000 and 20% of which is fixed. Calculate
COGS at 80% capacity utilization, considering that current utilization of capacity is 60%

Rs. 3 20 000

Rs 3 80 000

Rs 4 00 000

Rs 5 00 000

When preparing a production budget, the quantity to be produced equals

Sales quantity + opening stock + Closing stock

Sales quantity - opening stock + Closing Stock

Sales Quantity - opening stock - Closing stock

Sales Quantity + opening stock - Closing stock

Bad Debts and advertising expenditures are the part

Production overheads

S & D Overheads

Factory Overheads

Total Overheads
Expenses pertaining to management of business like office rent , lighting and heating, postage ,
telephone fax and other charges depreciation of Office furniture and equipment legal charges audit
fee, and so on are example of

Indirect material expense

Direct material expense

Variable expenses

Office and administrative expenses

Construction limited plans to discontinue its interior decoration segment last year, this segment
generated a contribution margin of rupees 60,000 and incurred rupees 80006 cost. Discontinuing the
state segment then allow the company to avoid half of the fixed cost what effect is expected to
occur to the company's overall profit

40000 increase / 20000 increase/ 20000 decrease/ profit will remain same

A company produces three types of products product, product B and product C . product A requires
200 machine set-up and machine hours used on it 1000. Product B require machine setups and
machine hours used on it were 500. product C requires 620 machine setups and machine hours
used on it were 1500 . The company has defined an activity caused full machine setups for which the
cost driver is number of machine set-up the total overhead cost assigned to that cost pool was
183000. The machine setups overhead assigned to each of the product was

A 30500 B 62000 C 93000

A 30000 B 60000 C 93000

A 30000 B 63000 C 93000

A 61000 B 61000 C 63000

The company increases the lot size of inventory purchases then which all of the following statement
is not true. One average inventory will increase 2 inventory turnover ratio will increase 3 inventory
turnover ratio will decrease 4 Days inventory will decrease

2 only

1 and 2 only

1 and 3

2 and 4

The following information pertains to Tyler Corporation sales 80000, variable cost a thousand,
fixed cost 40000 what is Tyler's break-even point in sales value?
200000

160000

50000

40000

Following information is available of prime limited for year ended March 2020. Fixed cost rupees 8
lakh, variable cost rupees 20 per unit, for selling price rupees 30 per unit. Output levels 2 lakh units,
closing stock 50000 units. What will be the amount of profit earned during the year using the
marginal costing technique

12 lakhs

7 lakhs

20 lakhs

9 lakhs

Which of the following statements about inventory valuation is true.

1. in case of rising prices FIFO method will result in higher valuation

2 in case of rising prices lifo method will result in higher valuation

3 in case of falling prices fifo method will result in higher valuation

4 in case of falling prices lifo method will result in higher valuation

1&4

1234

1&2

2&3

A company makes a single product and incurs fixed cost of sixty

thousand per annum. Unit is rupees 10 and each unit sells for
rs30. Annual sales demand is 14000 units. The break-even point is
2000 units 3000 unit 4000 units 6000 units
Which of the following items would be subtracted from net
income when using the indirect method of calculating cash flows
provided by operating activities
depreciation expense
repayment of bonds payable
again on the sale of land
a loss on the sale of equipment

The following is true about activity-based costing

it is a two-stage cost allocation system that allocate cost to activities
and then to products based on their use of the activities
under this both direct cost and indirect costs are absorbed into
products using predetermined departmental rate
under this standard cost system is used
under this budgeted cost are used

Selling and distribution charges are incurred for marketing of

products dispatching goods sold and so on and include
advertisement expenses, cost of repairing tenders, traveling expenses,
bad debt, collection charges
Warehouse charges, packing and loading charges and carriage
outwards
all of these
none of these

Traffic planning is done in the case of

ntp analysis
CVP analysis
cost analysis
contribution analysis

the overall PV ratio office visit limited is 60%. The marginal cost of
product X is estimated at rupees 50. Determine the selling price of
product Z
RS 100
RS 110
RS 125
Rs 120

Net profit is reported at 15 lakh. Net profit include interest expense 5

lakhs , income tax expense 20 lakh, interest income 3 lakhs ,
depreciation 6 lakhs working capital increase during the year by 4
lakh. There was no income tax liability at the beginning and at the
end of the year. Cash flow from operating activities is
6400000
5400000
7400000
6200000
ABC limited sell single product for rupees 9 per unit. The variable
cost is rupees six per unit and the fixed cost total rupees
54000 per month. In a period when the actual sales were rs 180000
ABC limited margin of safety in units of was
16000
18000
2000
170000
Which of the following statements are true?
a. Financial statements are only interim report
b. financial statements are also known as annual records
c. financial statements are historic
option A
option A and B
option b
option b and c

From the following information calculate the net profit ratio.

Particulars cease to 520000 fixed-asset 1440000 cost of Sales19
20000 net worth 1500000 net profit 360000 9x inventory 7 lakh
current liabilities 5 lakhs
0. 160
0.1429
0.1501
0. 1322
A firm has profit before interest and taxes of rupees 900000, interest
charges rupees 100000,taxes 400000, total assets rs 60000 and total
liabilities rupees 40000. What is the return to shareholders (ROE)
expect
0.18
0.22
0.2
0.25
The following details related to a particular company
A) total cost center overhead are rs 200000 for the Machining
Department and rupees 1500000 assembly Department
B) machine hours used in machining are 100000 hours and in
assembly are 5000 hours
C) labor hours used in machining are 4000 hours and in assembly
r12000 hours.
The most appropriate overhead rate to use for the Machining
Department would be
RS 20 per machine hour
RS 40 per labor hour
RS 30 per machine hour
RS 12.50 for labor hour

tibu company expect sale of product W 60 000 units in April, 75000

units in May, 70000 units in June. The company desires that the
inventory on hand at the end of each month be equal to 40% of the
next month expected units sales. Due to excessive production during
March, on March 31s there were 30 000 units of product W in the
ending inventory. Given this information, Tibu company's
production all product W for the month of April should be?
60000 units
65000 units
75000 units
66000 unit

______ attached with the balance sheet forms a part of financial

statements
agendas
schedule or notes to account
acts
rules
ABC limited plans to produce and sell 4,000 units of product C each
month, at a selling price of Rupees is 18 per unit. The unit cost
comprises of the rs 8 variable cost and rs 4 fixed cost. Calculate the
monthly margin of safety as a percentage of plant sales
0.6
0.7
0.75
0.65

The closing inventory, if any, under absorption costing is valued at?

All variable cost per unit
variable manufacturing cost per unit
variable and fixed manufacturing cost per unit
variable and fixed cost per unit

If the sales price will increase in which of the following statements

are true
1 contribution margin will go up
ii break even point will go up
iii break even point will go down
iv contribution margin will go down

1 FIXED COST IS 12000.P/V RATIO IS 25% WHAT WILL BE BREAK SALES IN

RUPEES A 48000 B 37000 C 9600 D 49000

2. CURENT RATIO IS 4.1.NET WORKING CAPITAL IS 30000. FIND THE AMOUNT

OF CURRENT ASSETS 10000 40000 24000 6000
3. FROM TOTAL INCOME, WHEN COGS, ADMIN AAND SELLING &
DISTRIBUTION EXPENSES ARE DEDUCTED, RESULTING PROFIT IS KNOW AS
EBITDA EBIT EBT PAT