(A) Forecasts of future sale.
(B) Recording the cost of goods sold.
(C) Recording Sales Revenue.
(D) Forecasts of future operating results.
Tag: Financial Accounting Mcqs
Which of the following is NOT a reason for carrying inventory?
(A) To maintain independence of operations
(B) To take advantage of economic purchase-order size
(C) To make the system less productive
(D) To meet variation in product demand
The cost of goods sold is equal to:
(A) Total Purchases – Total Sales.
(B) Opening stock + Total Purchase.
(C) Opening stock – Total Purchases +Closing Stock+ Direct Costs.
(D) Opening stock + Total Purchases – Closing Stock + Direct Costs.
Cost of production is equal to:
(A) Prime costs+ other manufacturing costs.
(B) Production costs + Administration expenses.
(C) Prime costs + Manufacturing costs + Opening W.I.P – Closing W.I.P.
(D) None of the above.
Ratios which may be used for comparing labour cost over time include the following except :
(A) Gross profit ratio
(B) Efficiency ratio
(C) Efficiency ratio
(D) Absenteeism ratio
Which of the following techniques is not meant for labour cost control?
(A) Budgetary control
(B) Standard costing
(C) ABC analysis
(D) Ratio analysis
Labour cost control embraces the following activities except :
(A) Recruitment and promotion
(B) Formulation of wage policy and payment and accounting for wages
(C) Allocation of cost
(D) Preparation of financial statement
Cost of labour turnover may be treated as :
(A) Direct wages
(B) Prime cost
(C) Overhead
(D) None of the above