MoMo Ltd. fixes the entomb divisional exchange costs for its items based on cost in addition to a profit from interest in the division. The spending plan for division X for 2020 - 21 shows up as under:

Fixed assets 5,00,132

Current assets 3,00,421

Debtors 2,00,822

Yearly fixed expense of the division 8,00,412

Variable expense per unit of the product 10.432

Planned volume 4,00,696 units each year

Wanted ROI 28.325%

Based on the above information, calculate Transfer price.

Answer all Mcqs

I. Which statement is true when the outcome of construction contract cannot be estimated reliably?

a. An expected loss on the construction contract shall be recognized as an expense immediately.

b. Contract costs shall be recognized as an expense in the period when incurred.

c. All of these statements are true.

d. Revenue shall be recognized only to the extent of contract costs incurred that is probable will be recoverable

II Which of coming up next is considered as should be expected loss of material?

(a) Pilferage

(b) Loss because of mishap

(c) Loss because of imprudent treatment of material

(d) None of these

III Idle time is

(a) Time spent by laborers in production line

(b) Time spent by laborers in office

(c) Time spent by laborers off their work

(d) Time spent by laborers on their work

IV Warehouse cost is an illustration of

(a) Production overhead

(b) Selling overhead

(c) Distribution overhead

(d) None of above

V Which of the accompanying things is excluded from planning of cost sheet?

(a) Carriage internal

(b) Purchase returns

(c) Sales Commission

(d) Interest paid

VI Operating costing is material to:

(a) Hospitals

(b) Cinemas

(c) Transport undertaking

(d) All of the abovementioned

VII If deals are Rs. 90,000 and variable expense to deals is 75%. Commitment is

(a) Rs. 21,500

(b) Rs. 22,500

(c) Rs. 23,500

(d) Rs. 67,500

VIII P/V Ratio will increment if the

(a) There is a diminishing in fixed expense

(b) There is an increment in fixed expense

(c) There is a decline in selling cost per unit

(d) There is a decline in factor cost per unit.

IX Difference between standard expense and genuine expense is called as

(a) Wastage

(b) Loss

(c) Variance

(d) Profit

X Sales Budget is a-

(a) Expenditure spending plan

(b) Functional financial plan

(c) Master spending plan

(d) None of the abovementioned

XI Depreciation is an illustration of-

(a) Fixed Cost

(b) Variable Cost

(c) Semi Variable Cost

(d) None