Paper 8: Cost Accounting (True/False)
1.       Bin card is maintained by the costing department. False
2.       Multiple costing is suitable for banking industry. False
3.       Slow moving materials have a high turnover ratio. False
4.       Cost ledger control account makes the cost ledger self-balancing. True
5.       FIFO method is followed for evaluation of equivalent production when prices are fluctuating. False

6.       Standard costs and budgeted costs are inter-related and inter-dependent. False
7.       There is inverse relationship between batch size and carrying costs. False
8.       Marginal costing follows the identifiability wise classification of costs. False
9.       By-products may undergo further processing before sale. True
10.   Materials which can be identified with the given product unit of cost centre is called as indirect materials. False
11.   Penalties and fines are included in cost accounts to determine the cost of production. False
12.   Uniform Costing is a unique method of costing to determine costs accurately. False
13.   When overtime wages are incurred due to the general policy of the company arising due to lack of capacity, normal wages are treated as direct labour cost and the premium on overtime wages is treated as factory overheads. False
14.   FIFO method is followed for evaluation of equivalent production when prices are fluctuating. False
15.   Profit Volume ratio remains constant at all levels of activity. True
16.   Cost ledger control account makes the cost ledger self-balancing. True
17.   CAS-8 deal with the principles and methods of determining the direct expenses. False
18.   The principal factor is the starting point for the preparation of various budgets. True
19.   Factory overhead cost applied to a job is usually based on a pre-determined rate. True
20.   CAS-19 deals with the principles and methods of determining the manufacturing cost of excisable goods. False
21.   In marginal and absorption costing, variable factory overhead is treated as direct cost. False
22.   Operation Costing and Operating Costing are interchangeably used for the same technique of costing. False
23.   Standard Costs are costs that are estimated costs that are likely in the future production period. False
24.   Increasing Labour Turnover increases the productivity of labour resulting in low costs. False
25.   In case of materials that suffer loss in weight due to evaporation etc. the issue price of the materials is inflated to cover up the losses. True

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