Correct answer: (C)
Acceptable customer service at low capital investment
3
When a manufacturing process requires mostly human labor and there are widely varying wage rates among workers, what is probably the most appropriate basis of applying factory costs to work in process?
Detailed Answer
Correct answer: (c)
Direct labor hours
4
When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin/profits?
Detailed Answer
Correct answer: (B)
LIFO
5
Cost accounting concepts include all of the following EXCEPT ______________
Detailed Answer
Correct answer: (C)
Sharing
6
Prime cost + Factory overhead cost is ______________
Detailed Answer
Correct answer: (B)
Production cost.
7
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. 5,000. If the management wants to increase sales price by 10%, what will be increasing sales profit of company by increasing unit sales price? (Cost & volume profit analysis keep in mind while solving)
Detailed Answer
Correct answer: (A)
Rs.2,000
8
In the case of plant, the limiting factor may be:
Detailed Answer
Correct answer: (A)
Insufficient capacity
9
The the main difference between the profit center and investment center is
Detailed Answer
Correct answer: (A)
Decision making
10
The main purpose of cost accounting is to ______________
Detailed Answer
Correct answer: (C)
Provide information to management for decision making