Cost and Managerial Accounting MCQs

?

Opening work in process inventory can be calculated as under






?

Which of the following statement measures the financial position of the entity on particular time?






?

Which of the following is a characteristic of process cost accounting system?






?

Fixed cost per unit decreases when ______________






?

Cost of production report is a ______________






?

The difference between total revenues and total variable costs is known as ______________






?

For which one of the following industry would you recommend a Process Costing system?






?

How many units would the company have to sell to attain target profits of Rs. 600,000?






?

Jan 1; finished goods inventory of Manuel Company was Rs.3, 00,000. During the year Manuel’s cost of goods sold was Rs. 19,00,000, sales were R...






?

The Process of cost apportionment is carried out so that ______________






?

Opportunity cost is the best example of ______________






?

______________ method assumes that the goods received most recently in the stores or produced recently are the first ones to be delivered to the requi...






?

Percentage of Margin of Safety can be calculated in which one of the following ways?






?

If 120 units produced, 100 units were sold @ Rs. 200 per unit. Variable cost related to production & selling is Rs. 150 per unit and fixed cost is Rs....






?

The following is the Corporation’s Income Statement for last month: Particular Rs. Sales 4,000,000 Less: variable expenses 2,800,000 Contributi...






?

The cost expended in the past that cannot be retrieved on product or service ______________






?

A typical factory overhead cost is ______________






?

Direct materials cost is Rs. 80,000. Direct labor cost is Rs. 60,000. Factory overhead is Rs. 90,000. Beginning goods in process were Rs. 15,000. The ...






?

Production volume of 1,200 units cost incurred Rs. 10,000 and production volume of 1,400 units cost incurred Rs.20,000. The variable cost per unit wou...






?

The components of the prime cost are






?

Which of the following represents a CVP equation?






?

Inventory control aims at ______________






?

When a manufacturing process requires mostly human labor and there are widely varying wage rates among workers, what is probably the most appropriate ...






?

When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin/profits?






?

Cost accounting concepts include all of the following EXCEPT ______________






?

Prime cost + Factory overhead cost is ______________






?

If 120 units produced, 100 units were sold @ Rs. 200 per unit. Variable cost related to production & selling is Rs. 150 per unit and fixed cost is Rs....






?

In the case of plant, the limiting factor may be:






?

The the main difference between the profit center and investment center is






?

The main purpose of cost accounting is to ______________






?

Find the value of purchases if Raw material consumed Rs. 90,000; Opening and closing stock of raw material is Rs. 50,000 and 30,000 respectively.






?

The following is the Corporation’s Income Statement for last month: Particular Rs. Sales 4,000,000 Less: variable expenses 2,800,000 Contributi...






?

Period costs are ______________






?

Examples of industries that would use process costing include all of the following EXCEPT






?

Annual requirement is 7800 units; consumption per week is 150 units. Unit price Rs 5, order cost Rs 10 per order. Carrying cost Rs 1 per unit and lead...






?

An organization sold units 4000 and have closing finished goods 3500 units and opening finished goods units were 1000.The quantity of unit produced wo...






?

Which of these is not an objective of Cost Accounting?






?

Describe the cost unit applicable to the Bicycle industry:






?

Which of these is not a Material control technique:






?

Which one out of the following is not an inventory valuation method?






?

Cost of abnormal wastage is:






?

Costs associated with the labour turnover can be categorised into:






?

A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs. 10 per hour. Under the Rowan Plan, he gets an hourly wage of Rs. 12 per h...






?

During September, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead expenditure variance was Rs 600. Overheads are assum...






?

A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? ...






?

A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company m...






?

A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs25 per hour. Normal loss is 20% ...






?

State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of...






?

The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy...






?

After inviting tenders for supply of raw materials, two quotations are received as follows- Supplier P Rs. 2.20 per unit, Supplier Q Rs. 2.10 per uni...






?

Statutory cost audit are applicable only to:






?

The summarized balance sheet of Auto light Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If ...






?

When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is ______________






?

A profit centre is a centre






?

Sunk costs are:






?

Calculate value of closing stock from the following: Opening stock of finished goods (500 units) : Rs. 2,000 Cost of production (10000 units) : Rs. ...






?

Economic order quantity is that quantity at which cost of holding and carrying inventory is:






?

Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days






?

Calculate re-order level from the following: Safety stock: 1000 units Consumption per week: 500 units It takes 12 weeks to reach material from the ...






?

Which of the following is not an avoidable cause of labor turnover:






?

Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll: - At the beginning of the month...






?

Most suitable basis for apportioning insurance of machine would be:






?

Which of the following is not a reason for an idle time variance?






?

The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs...






?

S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs ar...






?

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was so...






?

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annua...






?

The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increa...






?

____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.






?

If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be






?

Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. ...






?

Responsibility Centre can be categorised into:






?

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour...






?

Bin Card is a






?

Calculate EOQ (approx.) from the following details: Annual Consumption: 24000 units Ordering cost: Rs. 10 per order Purchase price: Rs. 100 per uni...






?

Calculate the value of closing stock from the following according to Weighted Average method: 1st January, 2014: Opening balance: 50 units @ Rs. 4 R...






?

Labour turnover means:






?

Overhead refers to:






?

Blanket overhead rate is:






?

Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening ...






?

In process costing, a joint product is






?

Which of the following organizations should not be advised to use service costing?






?

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit...






?

In ’make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ___...






?

For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; P...






?

In element-wise classification of overheads, which one of the following is not included -






?

Cost Unit is defined as:






?

Fixed cost is a cost:






?

Conversion cost includes cost of converting ______________ into ______________






?

Stores Ledger is a:






?

Calculate the value of closing stock from the following according to LIFO method: 1st January, 2014: Opening balance: 50 units @ Rs. 4 Receipts: 5t...






?

If overtime is resorted to at the desire of the customer, then the overtime premium:






?

Which of the following is not a method of cost absorption?






?

Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was ad...






?

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 63...






?

A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:






?

The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,0...






?

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.






?

Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. ...






?

In case of rising prices (inflation), FIFO method will: