All of the following are features of fixed costs EXCEPT: Although fixed within a relevant range of activity level but are relevant to a decision making when it is avoidable. Although fixed within a relevant range of activity level but are relevant to a decision making when it is incremental. Generally it is irrelevant It is relevant to decision making under any circumstances Information concerning Department B of Baba Company for the month of April is as follows: Units Material Cost ( Rs ) Work in process opening 7.000 21.000 Units started in April 68.000 210.800 Units completed and transferred out 60,000 Work in process ending 9.000 All materials are added at the beginning of the process. Required: Using the average cost method. How much be the cost ( rounded to two places ) per equivalent unit for materials? Rs .1.00 Rs. 3.10 Rs. 3.09 Rs. 3.05 A typical factory overhead cost is: Distribution Internal audit Compensation of plant manager Design An average cost is also known as: Variable cost Unit cost Total cost Fixed cost Period costs are: Expensed when the product is sold Included in the cost of goods sold Related to specific period Not expensed While calculating the EOQ. number of orders is calculated by: Dividing requited unit by ordered quantity Multiplying the required units with ordered quantity Multiplying the ordered quantity with cost per order Multiplying the required units with cost per order Which of the following best describe piece rate system? The increased volume of production results in decreased cost of production The increased volume of production in minimum time Establishment of fair standard rates Higher output is a result of efficient management The term Cost apportionment is referred to: The costs that cannot be identified with specific cost centers. The total cost of factory overhead needs to be distributed among specific cost centers but must be d among the concerned department / cost centers. The total cost of factory overhead needs to be distributed among specific cost centers. None of the given options Examples of industries that would use process costing include all of the following EXCEPT: Beverages Food Hospitality Petroleum Which of the following loss is not included as part of the cost of transferred or finished goods, but rather treated as a period cost? Operating loss Abnormal loss Normal loss Non - operating loss Hyde Park Company produces sprockets that are used in wheels. Each sprocket sells for Rs. 50 and the company sells approximately 400,000 sprockets each year. Unit cost data for the year follows. Direct material Rs. 15 Direct labor Rs. 10 Other cost: Fixed variable Manufacturing Rs.5 Rs.7 Distribution Rs.4 Rs.3 Required: Identify the unit cost of sprockets under direct costing Rs.44 Rs 37 Rs.32 Rs.35 When production is equal to sales, which of the following is TRUE? No change occurs to inventories for either use absorption costing or variable costing methods The use of absorption costing produces a higher net income than the use of variable costing The use of absorption costing produces a lower net income than the use of variable costing The use of absorption costing causes inventory value to increase more than they would though the use of variable costing Selling price per unit is Rs 15. total variable cost per unit is Rs. 9. and total fixed costs are Rs 15.000 of "XIT". What is the breakeven point in units for "XIT"? 3,000 units 1,000 units 1,667 units 2,500 units Eclair Ltd manufactured three products,JP.1,JP2,JP.3 with the following cost of raw material 10,000 kg ,cost Rs 24,000 and conversion cost is Rs. 28,000. sales price, per Out - Put Production, Kg Kg JP.l 4,000 11 JP,2 3,000 10 JP.3 1,000 26 Process costs are apportioned on a sales value basis. Required: What was the apportioned cost for JP1. Rs 22,880 Rs. 15,600 Rs 13,520 Rs. 52,000 While constructing a Break even chart, the gap between sales line and variable cost line shows which of the following? Fixed cost Break even point Contribution margin Variable cost All of the following compose cost of goods sold EXCEPT: Raw material Labor Capital Factory overhead If a firm is using activity - based budgeting, the firm would use this in place of which of the following budgets? Direct labor budget Direct materials budget Revenue budget Manufacturing overhead budget Amount of Depreciation on fixed assets will be fixed in nature if calculated under which of the following method? Straight line method Reducing balance method Some of year's digits method Double declining method