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Read the following statements and select the correct choice given below :

i. Sunk cost is irrecoverable and is not relevant to the present decision making
ii. Period cost is also known as variable cost
) Only statement i is correct
) Only statement ii is correct
)
)

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Both statements i and ii are correct
Both statements i and ii are incorrect

0

The standard labour time allowed to produce the product X is 280 hours and the
actual time taken to produce the same is 300 hours. Standard wage rate is Rs. 500
per hour and actual wage rate is Rs. 460 per hour. Find Labour Rate Variance.

A) Rs. 11,200 B) Rs. 9,200 C) Rs. 10,000 D) Rs. 12,000
The most suitable pricing method for material issues, at the time of rise in prices is
A) FIFO B) LIFO

C) Simple average method D) Weighted average method

If time allowed for a job is 20 hours and normal wage rate per hour is Rs. 50, what
will be the total earnings of a worker who complete the job in 16 hours, as per Halsey
plan ?

A) Rs. 800 B) Rs. 1,000 C) Rs. 900 D) Rs. 950

Which of the following statement(s) about overheads are correct ?
i. Overheads cannot be directly traced to a product or service

ii. Overheads can be fixed, variable or semi-variable

iii. Rent and utilities are treated as overheads

Only statements i and ii are correct

Only statements ii and iii are correct

All statements are correct

All statements are incorrect

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)
)
)
)

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The profit-volume ratio can be improved by
A) increasing variable cost per unit B) decreasing selling price per unit
C) increasing selling price per unit D) None of these

The process of recording actual time spent by a worker on various jobs during his
period of attendance in the factory is called

A) time keeping B) time booking

C) mustering D) All of these