Following is (are) called the element(s) of Cost A. Material B. Labour C. Expenses D. All of the above

Following is (are) called the element(s) of Cost
A. Material
B. Labour
C. Expenses
D. All of the above
by

1 Answer

Answer :

D. All of the above
by

Related questions

Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Description : Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Last Answer : A. Prime cost + All Variable overheads

Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Description : Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Last Answer : (d) Material, Labour and expenses

Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Description : Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Last Answer : C. Indirect wages and factory overheads

The following is (are) the indirect labour cost(s) A. Wages paid to storekeeper B. Salary of works manager C. Wages paid to gatekeeper D. All of the above

Description : The following is (are) the indirect labour cost(s) A. Wages paid to storekeeper B. Salary of works manager C. Wages paid to gatekeeper D. All of the above

Last Answer : D. All of the above

.Which of the following statements are true about labour idle time? A. Labour idle time variance is not caused by non-availability of raw material B. Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate C. Labour idle time variance is always unfavorable or adverse D. All of the above

Description : .Which of the following statements are true about labour idle time? A. Labour idle time variance is not caused by non-availability of raw material B. Labour idle time variance is measured as : Abnormal ... hourly rate C. Labour idle time variance is always unfavorable or adverse D. All of the above

Last Answer : C. Labour idle time variance is always unfavorable or adverse

In any industry three top operating expenses are found to be ________. a) wnergy. b) labour cost c) all of the above d) material

Description : In any industry three top operating expenses are found to be ________. a) wnergy. b) labour cost c) all of the above d) material

Last Answer : all of the above

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Description : Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Last Answer : (c) Rs. 1,70,000

Cost of inventories includes A. Direct Material + Direct Expenses B. Direct Labour + Direct Expenses C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition D. Direct material only

Description : Cost of inventories includes A. Direct Material + Direct Expenses B. Direct Labour + Direct Expenses C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition D. Direct material only

Last Answer : C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition

The formula used for calculation of labour rate variance is A. Total standard labour cost of actual output - Total actual cost of actual output B. (Standard rate per hour - Actual rate per hour) * Actual Hours C. (Standard time - Actual time) * Standard rate per hour D. Abnormal idle hours * Standard hourly rate

Description : The formula used for calculation of labour rate variance is A. Total standard labour cost of actual output - Total actual cost of actual output B. (Standard rate per hour - Actual rate per hour) ... time - Actual time) * Standard rate per hour D. Abnormal idle hours * Standard hourly rate

Last Answer : B. (Standard rate per hour - Actual rate per hour) * Actual Hours

Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Description : Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Last Answer : A. Sales = Variable expenses + Fixed expenses + Profit

The term current asset doesn’t cover A. Car B. Debtors C. Stock D. Prepaid expenses

Description : The term current asset doesn’t cover A. Car B. Debtors C. Stock D. Prepaid expenses

Last Answer : A. Car

Liquid assets is determined by A. Current assets-stock-Prepaid expenses B. Current assets +stock+ prepaid expenses C. Current assets +Prepaid expenses D. None of the above

Description : Liquid assets is determined by A. Current assets-stock-Prepaid expenses B. Current assets +stock+ prepaid expenses C. Current assets +Prepaid expenses D. None of the above

Last Answer : A. Current assets-stock-Prepaid expenses

Which of the following is expenses ratio? (a) Administrative expenses ratio (b) Selling and Distribution expenses ratio (c) Factory expenses ratio (d) Finance Expenses ratio A. A, B and D B. A, C and D C. A, B and C D. A, B , C, D

Description : Which of the following is expenses ratio? (a) Administrative expenses ratio (b) Selling and Distribution expenses ratio (c) Factory expenses ratio (d) Finance Expenses ratio A. A, B and D B. A, C and D C. A, B and C D. A, B , C, D

Last Answer : D. A, B , C, D

Which of the following is not a cash outflow? A. Increase in Prepaid expenses B. Increase in debtors C. Increase in stock D. Increase in creditors

Description : Which of the following is not a cash outflow? A. Increase in Prepaid expenses B. Increase in debtors C. Increase in stock D. Increase in creditors

Last Answer : D. Increase in creditors

Consider the following statements and identify the right ones. A. COR is relatively low in labour intensive sectors. B. COR will be high in capital intensive sectors C. Both D. None

Description : Consider the following statements and identify the right ones. A. COR is relatively low in labour intensive sectors. B. COR will be high in capital intensive sectors C. Both D. None

Last Answer : C. Both

Idle time variance arises when A. Only one grade of labour is used B. Time is lost due to abnormal reasons C. Both a and b D. None of the above

Description : Idle time variance arises when A. Only one grade of labour is used B. Time is lost due to abnormal reasons C. Both a and b D. None of the above

Last Answer : C. Both a and b

Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Description : Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Last Answer : D Revenue

Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Description : Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Last Answer : A sales forecast is only......

The sub-variance of material usage variance, known as Material mix variance is measured as A. Total standard cost - Total actual cost B. Standard cost of revised standard mix - Standard cost of actual mix C. (Standard unit price - Actual unit price) * Actual quantity used D. (Standard quantity - Actual quantity) * Unit standard price

Description : The sub-variance of material usage variance, known as Material mix variance is measured as A. Total standard cost - Total actual cost B. Standard cost of revised standard mix - Standard cost of ... unit price) * Actual quantity used D. (Standard quantity - Actual quantity) * Unit standard price

Last Answer : B. Standard cost of revised standard mix - Standard cost of actual mix

In any industry,the three top operating expenses are often Found to be energy a) electrical & thermal. c) none b) labour and materials. d) option a & b

Description : In any industry,the three top operating expenses are often Found to be energy a) electrical & thermal. c) none b) labour and materials. d) option a & b

Last Answer : option a & b

When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. A. Operating activities, financing activities B. Financing activities, investing activities C. Investing activities, operating activities D. None of the above

Description : When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. A. Operating activities, financing activities B. ... activities, investing activities C. Investing activities, operating activities D. None of the above

Last Answer : B. Financing activities, investing activities

Which element of the promotional mix consists of short-term incentives to encourage the purchase of a product? A. advertising B. public relations C. direct marketing D. sales promotion

Description : Which element of the promotional mix consists of short-term incentives to encourage the purchase of a product? A. advertising B. public relations C. direct marketing D. sales promotion

Last Answer : D. sales promotion

_____ is the only element of the marketing mix that produces revenue. A. Product B. Price C. Place (distribution) D. Promotion

Description : _____ is the only element of the marketing mix that produces revenue. A. Product B. Price C. Place (distribution) D. Promotion

Last Answer : B. Price

Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis. A. Output, Input B. Output, Output C. Input, Output D. None of the above

Description : Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis. A. Output, Input B. Output, Output C. Input, Output D. None of the above

Last Answer : C. Input, Output

During the construction period, price variation clause in contracts caters to (A) Increase in rates of only important materials (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element (C) Variation in total cost of the project on an ad hoc basis (D) Rate of inflation

Description : During the construction period, price variation clause in contracts caters to (A) Increase in rates of only important materials (B) Variation in cost in materials element, labour element and petrol-oil-lubricant ... ) Variation in total cost of the project on an ad hoc basis (D) Rate of inflation

Last Answer : (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element

Which one of the following is normally NOT included in production cost ? (a) Cost of raw material (b) Cost of labour (c) Cost of advertisement (d) indirect material cost

Description : Which one of the following is normally NOT included in production cost ? (a) Cost of raw material (b) Cost of labour (c) Cost of advertisement (d) indirect material cost

Last Answer : (a) Cost of raw material

As compared to wall type breakwater, mound type breakwater (A) Requires skilled labour (B) Requires low maintenance cost (C) Requires less material (D) Results in less damage due to gradual failure

Description : As compared to wall type breakwater, mound type breakwater (A) Requires skilled labour (B) Requires low maintenance cost (C) Requires less material (D) Results in less damage due to gradual failure

Last Answer : (D) Results in less damage due to gradual failure

Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost 3. The job costing method can be applied in costing batches (a) (1) only (b) (1) and (2) only (c) (1) and (3) only (d) (2) and (3) only

Description : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only

Last Answer : (c) (1) and (3) only

Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Description : Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Last Answer : d) Repeated distribution method

The consumer’s estimate of the product’s overall capacity to satisfy his or her needs is called: A. Product Cost B. Product Value C Product need D Product Satisfaction

Description : The consumer’s estimate of the product’s overall capacity to satisfy his or her needs is called: A. Product Cost B. Product Value C Product need D Product Satisfaction

Last Answer : B. Product Value

The theory of Comparative cost advantage is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher

Description : The theory of Comparative cost advantage is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher

Last Answer : A. David Ricardo

The Theory of Absolute Cost Advantage is given by A. David Ricardo B. Adam Smith C. F W Taylor D. Ohlin and Heckscher

Description : The Theory of Absolute Cost Advantage is given by A. David Ricardo B. Adam Smith C. F W Taylor D. Ohlin and Heckscher

Last Answer : B. Adam Smith

National income is A. NDP at market prices B. NDP at factor cost C. GNP at market prices.

Description : National income is A. NDP at market prices B. NDP at factor cost C. GNP at market prices.

Last Answer : C. GNP at market prices.

National Income is the: A. Net National Product at market price B. Net National Product at factor cost C. Net Domestic Product at market price D. Net Domestic Product at factor cost

Description : National Income is the: A. Net National Product at market price B. Net National Product at factor cost C. Net Domestic Product at market price D. Net Domestic Product at factor cost

Last Answer : C. Net Domestic Product at market price

The breakeven chart helps the management in… A. Forecasting costs and profits B. Cost control C. Long term planning and growth D. All of the above

Description : The breakeven chart helps the management in… A. Forecasting costs and profits B. Cost control C. Long term planning and growth D. All of the above

Last Answer : D. All of the above

Angle of incidence is the angle at which A. Total revenue line intersects the total cost line B. Total cost line intersects the variable cost line C. Variable cost line intersects fixed cost line D. Fixed cost line intersects total revenue line

Description : Angle of incidence is the angle at which A. Total revenue line intersects the total cost line B. Total cost line intersects the variable cost line C. Variable cost line intersects fixed cost line D. Fixed cost line intersects total revenue line

Last Answer : A. Total revenue line intersects the total cost line

Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Description : Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Last Answer : A. (Fixed cost + profit)/ (P/V Ratio)

The P/V ratio can be improved by A. Decreasing the selling price per unit B. Increasing variable cost C. Changing the sales mix D. None of the above

Description : The P/V ratio can be improved by A. Decreasing the selling price per unit B. Increasing variable cost C. Changing the sales mix D. None of the above

Last Answer : C. Changing the sales mix

Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Description : Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Last Answer : C. Contribution above breakeven point becomes profit.

Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? A. 500 units B. 1,000 units C. 1,250 units D. None of the above

Description : Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? A. 500 units B. 1,000 units C. 1,250 units D. None of the above

Last Answer : the following instances are related to the production of a company during the month of August 2014 . Direct material 1200,wages 1200, factory rent 1000, depreciation of machinery 1000, supervisor salary ... selling expenses 2500. Prepare a cosy sheet and shiw the% of various costs on total costs.

Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Description : Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Last Answer : D. All of the above.

___________ is not suitable where selling price is determined on the basis of cost-plus method. A. Absorption costing B. Marginal costing C. Both a and b D. None of the above

Description : ___________ is not suitable where selling price is determined on the basis of cost-plus method. A. Absorption costing B. Marginal costing C. Both a and b D. None of the above

Last Answer : B. Marginal costing

When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Description : When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Last Answer : D. There will be neither profit not loss

When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Description : When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Last Answer : C. There will be loss less than fixed costs

Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs C. If contribution is positive and more than fixed cost there will be profit. D. All of the above

Description : Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs ... contribution is positive and more than fixed cost there will be profit. D. All of the above

Last Answer : A. If contribution is zero, there is loss equal to fixed costs

While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Description : While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Last Answer : A. Total marginal cost is deducted from total sales revenues

Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed costs are treated as product cost. (d) Marginal costing is not a technique of cost analysis. A. A and B B. B and C C. A and D D. B and D

Description : Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed ... cost analysis. A. A and B B. B and C C. A and D D. B and D

Last Answer : A. A and B

The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Description : The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Last Answer : B. Management

The term standard cost refers to the: A. average unit cost of product produced in the previous period B. budgeted unit cost of product produced in a particular period C. average unit cost of product produced by other companies D. average unit cost of product produced in the current period

Description : The term standard cost refers to the: A. average unit cost of product produced in the previous period B. budgeted unit cost of product produced in a particular period C. average unit cost of product produced by other companies D. average unit cost of product produced in the current period

Last Answer : B. budgeted unit cost of product produced in a particular period