The basic difference between a static budget and flexible budget is that:
A. | A flexible budget considers only variable costs but a static budget considers all costs. |
B. | Flexible budgets allow management latitude in meeting goals, whereas static budget is based on fixed standards. |
C. | A flexible budget is applicable for a single department only but a static budget for entire production facility. |
D. | A flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production. |
Option: D Explanation : Click on Discuss to view users comments. |
A retiring partner continues to be liable for obligations incurred after his retirement:
A. | If unpaid amount is transferred to his loan account. |
B. | If he does not give public notice. |
C. | If he starts a similar business elsewhere. |
D. | In all the situations till he survives. |
Option: B Explanation : Click on Discuss to view users comments. |
In what order, the following assets are shown in the balance sheet of a company?
(i) Trade receivables
(ii) Cash
(iii) Furniture and fittings
(iv) Investment in shares and debentures
A. | (ii), (i), (iv), (iii) |
B. | (i), (ii), (iii), (iv) |
C. | (iii), (iv), (i), (ii) |
D. | (iv), (iii), (ii), (i) |
Option: C Explanation : Click on Discuss to view users comments. |
When opening stock is Rs 50,000, closing stock is Rs 60,000 and the cost of goods sold is RS 2,20,000, the stock turnover ratio is:
A. | 2 times |
B. | 3 times |
C. | 4 times |
D. | 5 times |
Option: C Explanation : Click on Discuss to view users comments. chandni said: (2:43pm on Sunday 28th June 2015)
how it is possible the formula is cgs divided by avg stock
Abdul Aziz said: (11:31pm on Monday 6th July 2015)
ST Ratio = cgs=220000/average stock=55000average stock = (os=50000 cls=60000)/2
ABDUL AZIZ said: (11:29am on Friday 31st July 2015)
Stock Turn Over ratio = Cost of Goods sold/ Average stock.= 220000/((50000 60000)/2)= 220000/55000= 4 Times.Ref - A text book of Accounting for Managers,, 4th edition, ; by Prof H.J.Ghosh Roy
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If: Stock turnover ratio is = 6 times
Average stock = Rs 8,000
Selling price = 25% above cost
What is the amount of gross profit?
A. | Rs 2,000 |
B. | Rs 4,000 |
C. | Rs 10,000 |
D. | Rs 12,000 |
Option: D Explanation : Click on Discuss to view users comments. Gayathri said: (3:27pm on Wednesday 28th December 2016)
STR=Cgs/average stock6=cgs/8000;cgs=48000;48000×125÷100=60000; gross profit =60000-48000=12000.
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