Costs that change in response to alternative courses of action are called___________?
(A) Relevant costs
(B) Differential costs
(C) Target costs
(D) Sunk costs
An average cost is also known as________?
(A) Variable cost
(B) Unit cost
(C) Total cost
(D) Fixed cost
When production is equal to sales, which of the following is TRUE?
(A) No change occurs to inventories for either use absorption costing or variable costing methods
(B) The use of absorption costing produces a higher net income than the use of variable costing
(C) The use of absorption costing produces a lower net income than the use of variable costing
(D) The use of absorption costing causes inventory value to increase more than they would though the use of variable costing
The most common imprest system is the ________ system?
(A) Petty cash
(B) Cash book
(C) Cash receipt
(D) Discount
Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?
(A) 1,600
(B) 1,500
(C) 1,000
(D) 1,800
A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?
(A) 18,387
(B) 18,560
(C) 18,750
(D) 19,000
One of the most important tools in cost planning is__________?
(A) Direct cost
(B) Cost Sheet
(C) Budget
(D) Marginal Costing.
A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is
(A) 792
(B) 820
(C) 840
(D) 864
If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.
(A) 8,000 units
(B) 11,000 units
(C) 10,000 units
(D) 9,000 units