Q1 · medium · AI-verified
A company's fixed overhead absorption rate is ₹10 per unit. Budgeted production was 5,000 units but actual production was 4,800 units. What is the fixed overhead volume variance?
- ₹200 (Adverse)
- ₹4,800 (Adverse)
- ₹2,000 (Favourable)
- ₹2,000 (Adverse)
Q2 · medium · AI-verified
Direct material cost is ₹40,000, direct labour cost is ₹25,000, factory overhead is ₹15,000, and selling & distribution overhead is ₹10,000. What is the 'Works Cost' (Factory Cost)?
- ₹55,000
- ₹80,000
- ₹90,000
- ₹65,000
Q3 · medium · AI-verified
Which costing method is most suitable for industries like oil refining, chemicals, and sugar, where production is a continuous process?
- Contract Costing
- Process Costing
- Job Costing
- Operating Costing
Q4 · medium · AI-verified
In marginal costing, which of the following costs is treated as a period cost and written off to the Profit & Loss account in the period it is incurred?
- Prime Cost
- Variable Cost
- Semi-variable Cost
- Fixed Cost
Q5 · medium · AI-verified
Standard material cost for one unit of product is 5 kg at ₹8 per kg. Actual material used for 100 units was 520 kg at ₹7.50 per kg. What is the Material Price Variance?
- ₹260 (Favourable)
- ₹260 (Adverse)
- ₹400 (Favourable)
- ₹160 (Adverse)