PHYSICS 101 COMPATIBILITY MODEL questions with correct answers *Graded A*

COMPATIBILITY MODEL Select The Blank Question If the profit volume ratio is 25%, then the variable cost is equal to of sales value. Correct Answer Your Answer True/False Question Under time rate system a work ...

COMPATIBILITY MODEL Select The Blank Question If the profit volume ratio is 25%, then the variable cost is equal to of sales value. Correct Answer Your Answer True/False Question Under time rate system a worker is paid on the basis of production achieved by him in a given time. Correct Answer Your Answer Multiple Choice Multiple Answer Question Direct Cost includes Correct Answer Your Answer Multiple Choice Single Answer Question Which of the following costs is most likely to have a cost behaviour pattern described as ..a fixed cost upto an activity level of 1,000 units, with a variable cost there after which decreases from 10 paise to 8 paise per unit at 2,000 units? True/False Question The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for this account. Select The Blank Question In case of defective material being returned by the stores department to the vendor, such material should be valued at the . True/False Question Piece rate system is suitable when quality of goods produced is of extreme importance. True/False Question A firm earns profit when contribution is equal to fixed costs under variable costing. Select The Blank Question While preparing trial balance, the balance as per book is considered as bank balance. Multiple Choice Single Answer Question Standard time required for a job is 10 hours, i.e.10 X 60 = 600 'Bs'. The worker has actually completed the job in 6 hours, i.e.6 X 60 = 360 'Bs'. Time wage rate is Rs.20/- per hour. Bonus is shared between the worker and the foreman in the ratio of 3:1. Calculate total earning of the worker as per Bedeaux Point System. Select The Blank Question Contribution represents pool of resources available for meeting all costs other than . Multiple Choice Multiple Answer Question Locate the steps involved in rectifying the errors in the books of accounts Multiple Choice Single Answer Question Judge the following narrative according to the criteria given : There are many organizations whose sales fluctuate with fluctuations in the weather, viz. ice-cream, sweaters, etc. Select The Blank Question Overheads chargeable to a product, using direct labour cost basis, may be calculated by multiplying percentage of direct labour cost and . Multiple Choice Multiple Answer Question Causes for adverse material price variance are: Correct Answer Uneconomical size of purchase orders , Failure to avail discounts allowed by suppliers. , Excessive freight charges Multiple Choice Multiple Answer Question The objectives of Uniform costing system are as follows : Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's overall performance , To compile reliable cost data for inter-firm comparison of costs Multiple Choice Single Answer Question 200 units of material were purchased from X @ Rs.5/- per unit and 300 units were purchased from Y @ Rs.6/- per unit. The organisation follows FIFO system of pricing of issues and the above purchases have been recorded in stores ledger. 120 units have already been issued. 60 units received from X are defective and are therefore returned. Find the value of the material returned to X. True/False Question Long term loan borrowed from financial institution comes under the heading of long term liabilities. Select The Blank Question If the total manufacturing overhead of a tiles producing factory amounted to Rs.15 lakhs and the overhead rate was Rs.5/- per sq.ft, then the production for the period can be stated as sq.ft. tiles. True/False Question Balance sheet indicates the financial status of the business at given period. True/False Question Profitability statement indicates the amount of assets & liabilities. True/False Question Category C items, as per the ABC analysis, usually refers to indirect material. True/False Question Balance sheet indicates the expenditure & income from the business. Multiple Choice Multiple Answer Question These are the methods of measuring labour turnover. True/False Question According to the standard costing principles, only adverse variance must be further investigated. Select The Blank Question Education facility to workers and their children, pension, superannuation fund are examples of incentives. Match The Following Question Correct Answer Your Answer Select The Blank Question The adjustment is necessary to reflect the cost for the use of fixed asset during the year. True/False Question A business is an activity carried out with the intention of earning the profit. True/False Question The purchase account should be debited when an order is placed with the supplier of material. Multiple Choice Single Answer Question The purchase budget for October is Rs.12,500/- and November is Rs.15,000/-. If the materials are purchased for cash the supplier is offering a rebate of 5%. If the materials are purchased on credit of 30 days, no rebate is offered. The company purchase Select The Blank Question The variance which measures the profit consequences of selling different products in proportions other than the standard, is known as variance. Multiple Choice Single Answer Question Which system can assist in fixing a common selling price for the industry as a whole on the basis of cost of production of all units belonging to that industry ? Multiple Choice Multiple Answer Question Select the non-monetary incentives True/False Question Control on purchase of material is exercised by the storekeeper. Select The Blank Question In practical circumstances, the are referred to as application of funds. .................................................................................................continued..................................................................................................................