Question12:-Which of the following statement is/are incorrect about
Budgeting/Budgetary control

(i) Operating budgets are prepared before Financial budgets

(ii) Comparison between actual and budgeted costs is not possible in fixed budget
(111) Material budget is an example of Long term budget

(iv) Cost is classified according to variability in flexible budget

A:-(i) and (ii)

B:-(ii) only

C:-(iii) only

D:-(iii) and (iv)

Correct Answer:- Option-C

Question13:-In a process, 100 units of raw material were introduced at a cost of
rupees 1000. The other expenditure were rupees 600. Out of 100 units introduced,
10% are normally lost and possess scrap of rupees 7 each. The output of process
was only 75 units. What is the Abnormal loss?

A:-250
B:-260
C:-265
D:-255
Correct Answer:- Option-D

Question14:-Which of the following statement is/are correct about purchasing

(i) Centralized purchasing exercises effective control over inventories

(ii) Centralized purchasing involves huge clerical work because all records relating
to purchases are kept at one place

(iii) Decentralized purchasing avoids the problem of overstocking and under
stocking of material

(iv) Centralized purchasing may cause delay in getting the material

A:-(i), (iii), (iv)

B:-(i) and (iv)

C:-(i), (ii), (iv)

D:-(i), (ii), (iii), (iv)
Correct Answer:- Option-B

Question15:-A manufacturer buys certain equipment from outside suppliers at Rs.
30 per unit. Total annual needs are 800 units and annual ROI is 10%. rent and
insurance per unit per year Rs. 1. Cost of placing an order Rs. 100. EOQ will be

A:-200 units
B:-100 units
C:-150 units
D:-250 units
Correct Answer:- Option-A
Question16:-Choose the incorrect statements/statements from the following