Question4:-Which of the following is not considered as carrying cost?
A:-Cost of handling materials
B:-Cost of insurance
C:-Cost of deterioration
D:-Cost of receiving goods
Correct Answer:- Option-D

Question5:-In which of the following methods, inventory is valued at the latest
prices prevailing in the market?

A:-FIFO method

B:-LIFO method

C:-Weighted Average method
D:-Simple Average method
Correct Answer:- Option-A

Question6:-Which one of the following statements are not correct?
(|) 1055 of material due to fire is treated as overhead and included for calculating
cost of

production.
(11) Salaries paid to salesmen come under direct cost and are included in the
calculation of

prime cost.
(111) Stock of finished goods are adjusted with the cost of production.

A:-All statements (1), (Il) and (III) are false
B:-Only statements (II) and (III) are false
C:-Only statements (I) and (Il) are false
D:-Only statements (I) and (Ill) are false
Correct Answer:- Option-C

Question7:-Which one of the following is not correct?
A:-P/V ratio = Contribution per unit/Selling price per unit 0
B:-Breakeven point = Fixed cost / P/V ratio
C:-P/V ratio = Change in profit/change in sales * 100
D:-Sales for desired profit = Desired profit / Contribution per unit
Correct Answer:- Option-D

Question8:-Which one of the following is not an assumption of Marginal costing?
A:-Total fixed cost will remain constant at all volumes of output
B:-Selling price per unit will vary with regard to change in volume of sales
C:-Total variable cost will change only due to change in volume of sales
D:-Sales mix will remain constant

Correct Answer:- Option-B