“If profit is 1,00,000 and Profit volume ratio is 40% then what will be margin of safety: “
Answer – 40,000
Answer – A seat per show
- In cinema halls, composite cost unit is a seat per show.
- Generally, a composite is a thing which is made up of several elements.
- In the same way, in cinemas, composite cost unit is the cost of seat and show.
- Whereas, cost of screening, salary of staff, rent of cinema hall is only one cost unit.
- Generally, the cost of composite unit is in between Rs: 70 to Rs: 200.
- The cost may be high in big theaters, malls, INOX.
So, in cinema halls, a seat per show is known as composite cost unit.
Q5. When absorbed overheads are rs.23,540 and actual overheads are rs.22,400, there is absorb
A.) Under absorption of rs.1,140.
B) Under absorption of rs.45,940.
C.) Over absorption of rs.1,140.
D.) Over absorption of rs.45940.
→ Absorbed overheads = Rs.23,540.
→ Actual overheads = Rs.22,400 .
→ 23540 > 22400
→ Absorbed overheads > Actual overheads.
Now, we know that :-
- If the absorbed overheads are higher than the actual overheads incurred, it is called over absorption.
→ over absorption of = Absorbed overheads + Actual overheads.
→ over absorption of = 23540 + 22400
→ over absorption of = Rs.45,940.
Hence, Option (D) over absorption of Rs.45940 is correct Answer.
Answer – Cost center
8. At break even point fixed cost equal to
Q9. At EQO
Q11. Cost estimation include(s) the following expenditure(s)
(A) Pattern making
(B) Tool making
(C) Selling expenses
(D) all of the above
Q12. Cost of Normal wastage is bear by
Q14. Costing is specialized branch of accounting which deals with:
a. Classification, recording, allocation, and control of asset
b. Classification, processing, allocation and directing
c. Classification, recording, planning and control of asset
d. Classification, recording, allocation and directing
Q15. Danger level= Normal consumption X .
Q24. Over-absorption of factory overheads, due to inefficiency of management, should be disposed of by
Over-absorption of factory overheads, due to inefficiency of management, should be disposed of by
The cost data provide invaluable information for taking the following managerial decision(s)
(A) To make or buy
(B) To own or hire fixed asset
(C) Determining the expansion or contraction policy
(D) All of the above
Q32. The following is cost of direct materials
(A) Freight charges
(D) Cotton waste