16. Which of the following statements are TRUE with respect to Departmentalisation of

17.

18.

Overheads?

1. Allocation is the process of charging full amount of overhead cost to a particular
department or cost centre.

11. Primary Distribution mean apportionment of overheads to production and service
departments.

III. Secondary Distribution means reapportionment of overheads of service departments to

production departments.
(A) Statement I alone is True (B) Statement II alone is True

(C) Statements I and II alone are True (D) Statements I, I and III are True

Which of the following statements are TRUE?

1.
1.

111.
1५.

Work-in- Progress in Contract Costing = Work Certified + Work Uncertified.
Batch Costing is suitable for pharmaceutical companies.
Process Costing is used in industries like mines and quarries.

Companies engaged in rendering services like transportation, railways, etc uses

Operating Costing.
(A) Statements I, II and III are True (B) Statements I, II and IV are True

(C) Statements H, II and IV are True (D) Statements I, II, II] and IV are True

Which of the following statements are TRUE in respect of Cash Flow Statement?

1.

1.

111.

Inflows and outflows of cash will be classified into three activities- operating, financing

and investing.

Net Cash resulting from operating, financing and investing activities are added to the

opening cash balance to arrive the closing cash balance.

Payment of Dividend to shareholders will be treated as Cash outflow from Investing

Activities.
(A) Statements I, II and III are True (B) Statements I and II are True
(C) Statements I and III are True (D) Statement I alone is True

7 025/2023
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