551. The concession received on the price of defective goods is called:
A: Discount
B: Cash discount
C: Allowance
D: Trading discount
552. In support of a business transaction, any written evidence is called _?
A: Discount
B: Voucher
C: Allowance
D: Price
553. Which one of the following is the Traditional approach for costing?
(A) Contribution approach
B) Absorption costing approach
(C) Decision-making approach
(D) Marginal costing approach
554. Which of the following is not true about differential costs?
(A) It is a broader concept than variable cost as it takes into account additional fixed costs caused by management decisions
(B) With the passage of time and change in situation, differential costs will vary
C) The difference in cost between buying them from outside or making them in the company is a differential cost, irrelevant for decisions
(D) They are extra or incremental costs caused by a particular decision
555. Which of the following is a process by which managers analyze options available to set courses of action by the organization?
(A) Heuristics method
B) Decision-making
(C) The Delphi technique
(D) Systematic error
556. Which of the following is NOT true? A small company’s breakeven point?
(A) Occurs where its revenue equals its expenses
(B) Shows entrepreneurs‘ minimum level of activity required to keep the company in operation
(C) Is the point at which a company neither earns a profit nor incurs a loss
D) Total contribution margin equals total variable expenses
557. When closing stock is overvalued, what would its effect on profit?
(A) Cannot determine with the given statement
B) It will Increase the profit
(C) It will decrease the profit
(D) No effect on profit
558. EOQ is a point where?
A) Ordering cost is equal to carrying cost
(B) Ordering cost is higher than carrying cost
(C) Ordering cost is lesser than the carrying cost
(D) Total cost is maximum
559. Average consumption x Emergency time is a formula for the calculation of?
(A) Lead time
(B) Re-order level
(C) Maximum consumption
D) Danger level
560. The salary of a factory clerk is treated as?
(A) Direct labor cost
B) Indirect labor cost
(C) Conversion cost
(D) Prime cost
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