………………… is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

Related MCQs

• The following details have been extracted from the debtors collection records of X limited: Invoices paid in the month after sale 60% Invoices pain in the second month after sale 20% Invoices paid in the third month after sale 15% Bad debts 5% Credit sales for June to August 2014 or budgeted as follows: June Rs. 1,00,000 July Rs. 1,50,000 August Rs. 1,30,000 customers pain in the month after sale are entitled to deduct a 2% cash discount. Invoices are issued on the last day of the month. The amount budgeted to be received in September 2014 from credit sales is
• ……………………are costs which have been applied against revenue of particular accounting period.
• Costs which are ascertained after they have been incurred are called
• Capacity Ratio =
• ………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.
• Defectives are that portion of production which can be ………………at some extra cost of re-operation.
• Cost Accounting has been developed becauseof……………… of Financial Accounting.
• Cost accounting has been developed because of limitation in:-
• Work which has been done but not certified is called
• Re-ordering level = Maximum consumption x …………………………