(i) The loss of time inherent in the production process is called Normal Idle Time
(11) The fire, non-availability of material and power failure is Abnormal Idle Time. It
is excluded from the cost

(iii) Inflated wage rate method is used in case of normal idle time where wage
rate is inflated properly and spreading the cost of idle time over effective hours
(iv) Abnormal idle time wage should be debited to costing, P/L Account

A:-(ii), (iv)

B:-(i), (iii)

C:-(i), (ii), (iii), (iv)
D:-None of the above
Correct Answer:- Option-D

Question17:-The cost of spare parts and accessories and overhaul in service costing
is categorized under which of the following charges

A:-Operating charges
B:-Standing charges
C:-Maintenance charges
D:-Fixed charges

Correct Answer:- Option-C

Question18:-(i) It is difficult to apply standard costing

(11) It facilitates cost control by comparing actual with estimates

(iii) It involves a lot of clerical work and chances of errors are high

(iv) It is also called terminal order costing

Choose the correct costing method to which the above features related?

A:-Operating costing
B:-Contact costing
C:-Process costing

D:-Job costing

Correct Answer:- Option-D

Question19:-A local authority is preparing cash budget for its refuse disposal
department. Which of the following items would not be included in cash budget?

A:-Operative wages
B:-Depreciation of machinery
C:-Fuel for the collection vehicle
D:-Capital cost of new collection vehicle
Correct Answer:- Option-B
Question20:-Which of the following statement is correct?

A:-Opening Stock + Net purchase - Direct expense - closing stock = cost of
goods sold

B:-Opening Stock + Net purchase + Direct expense - closing stock = cost of
goods sold