(1) Payment of higher wages does not necessarily mean that labour cost per unit is high. (2) Control over payment of wages aims at reducing or eliminating irregularities during actual disbursements. True or False?
1.(1) and (2) True
2.(1) and (2) False
3.(1) False; (2) True
4.(1) True; (2) False
Posted Date:-2021-11-18 09:37:09
A manufacturing firm is very busy and is working overtime. The amount of overtime premium contained in direct wages would normally be classed as:
1.Part of prime cost
2.Factory overheads
3.Direct labour cost
4.Administrative overheads
Posted Date:-2021-11-18 09:35:38
An opportunity cost is a
1.Direct expense
2.Indirect expense
3.Variable expense
4.Fixed expense
Posted Date:-2021-11-18 09:26:12
An overhead absorption rate is used to:
1.Share out common costs over benefiting cost canters
2.Find the total overheads for a cost centre
3.Charge overheads to products
4.Control overheads
Posted Date:-2021-11-19 10:59:01
Angle of incidence defines:
1.Systematic risk in CAPM model
2.Post BEP relationship between total cost and total revenue
3.Incidental factors in investments
4.Marginal cost of production
Posted Date:-2021-11-19 10:53:22
Contribution margin contributes to meet which one of the following options?
1.Variable cost
2.Fixed cost
3.Operating cost
4.Net profit
Posted Date:-2021-11-19 10:56:44
Cost accountancy is the science, art and ______________ of cost accountant.
1.Profession
2.Management
3.Administration
4.Practice
Posted Date:-2021-11-18 09:23:30
Cost of production is equal to
1.Prime costs+ other manufacturing costs.
2.Production costs + Administration expenses.
3.Prime costs + Manufacturing costs + Opening W.I.P - Closing W.I.P.
4.None of the above.
Posted Date:-2021-11-19 10:56:19
Depreciation on plant and machinery is:
1.Not a cash cost, so is ignored in the cost accounts
2.Part of manufacturing overheads
3.Part of prime cost
4.Always calculated using the straight-line method
Posted Date:-2021-11-18 09:33:54
Favorable conditions for the operation of piece rates include:
1.Homogeneous products
2.Long, uninterrupted run of production
3.Inspection
4.High proportion of indirect labour
Posted Date:-2021-11-17 15:01:29
Find the value of purchases if Raw material consumed 90,000; Opening and closing stock of raw material is 50,000 and 30,000 respectively.
1.10,000
2.20,000
3.70,000
4.1,60,000
Posted Date:-2021-11-17 14:59:13
For exercising control over selling and distribution overheads, the following techniques may be used:
1.Comparison with past results
2.Budgetary control
3.Standard costing
4.All of the above
Posted Date:-2021-11-19 10:54:09
Functionally, administration expenses may comprise expenses of the following activities:
1.Secretarial and board of directors
2.Accounting, financing, tax and legal
3.Audit and personnel
4.All of these
Posted Date:-2021-11-18 09:34:58
If 120 units produced, 100 units were sold @ 200 per unit. Variable cost related to production & selling is 150 per unit and fixed cost is 5,000. If the management wants to decrease sales price by 10%, what will be the effect of decreasing unit sales price on profitability of company?
1.Remains constant
2.Profits will increased
3.Company will have to face losses
4.None of the given options
Posted Date:-2021-11-17 14:57:56
If Direct Material = 12,000; Direct Labor = 8000 and other Direct Cost = 2000 then what will be the Prime Cost?
1.12000
2.14000
3.20000
4.22000
Posted Date:-2021-11-19 11:00:30
If Happy Ltd. Is subject to an effective income tax rate of 40%, the number of units Happy Ltd. Would have to sell to earn an after-tax profit of 90,000 is:
1.1,00,000 units
2.1,20,000 units
3.1,12,000 units
4.1,45,000 units
Posted Date:-2021-11-18 09:29:35
If there has been an over recovery of overheads, at the end of the accounting period the amount concerned should be?
1.Debited to the company profit and loss account.
2.Credited to the company profit and loss account.
3.Carried forward to the next accounting period as a cost saving.
4.Used to reduce next period's overhead recovery rate.
Posted Date:-2021-11-18 09:19:43
If you know that with 8 units of output, average fixed cost is 12.50 and average variable cost is 81.25, then total cost at this output level is:
1.93.75.
2.97.78.
3.750.
4.880.
Posted Date:-2021-11-19 10:53:43
In a perpetual inventory system, an inventory flow assumption (i.e. LIFO or FIFO) is used primarily for determining costs which are used in
1.Forecasts of future sale.
2.Recording the cost of goods sold.
3.Recording Sales Revenue.
4.Forecasts of future operating results.
Posted Date:-2021-11-18 09:37:47
In a profit sharing scheme the available surplus is shared by the following except:
1.Government
2.Shareholders
3.Employees
4.Firm
Posted Date:-2021-11-18 09:16:16
In a shutdown decision, one has to consider:
1.Contribution
2.Identifiable fixed cost, if any
3.mpact of shutdown on other products, if any
4.All of the above
Posted Date:-2021-11-19 10:52:31
Labour turnover can be measured by the following methods except:
1.Attrition method
2.Separation method
3.Replacement method
4.Flux method
Posted Date:-2021-11-18 09:36:23
Non-monetary incentives may include the following except:
1.Health and safety
2.Housing facilities
3.Education and training
4.Dearness allowance
Posted Date:-2021-11-19 10:57:08
Overtime premium may be treated, depending on the circumstances, as:
1.Part of direct wages
2.Part of production overheads
3.Part of capital order
4.All of the above
Posted Date:-2021-11-19 10:55:25
Preventive costs of labour turnover include the following except:
1.Cost of recruitment and training
2.Medical services
3.Welfare
4.Gratuity and pension
Posted Date:-2021-11-19 10:55:50
Secondary packing expenses are:
1.Part of prime cost
2.Part of production overheads
3.Part of distribution overheads
4.Written-off to costing profit and loss account
Posted Date:-2021-11-18 09:32:31
Stock verification sheets are maintained to record the result of ______________ verification.
1.Conceptual
2.Physical
3.Economic
4.Detailed
Posted Date:-2021-11-18 09:27:57
Sun Ltd. Makes a single product which it sells for 10 per unit. Fixed costs are 48,000 per month and the product has a contribution to sales ratio of 40%. In a period when actual sales were 1, 40,000. Sun Ltd.'s margin of safety in units was:
1.2,000
2.6,000
3.8,000
4.12,000
Posted Date:-2021-11-18 09:28:45
The break-even point is the point where:
1.Total sales revenue equals total expenses (variable and fixed):
2.Total contribution margin equals total fixed expenses
3.Total sales revenue equals to variable expenses only
4.Both a & b
Posted Date:-2021-11-17 14:56:45
The difference between total revenues and total variable costs is known as:
1.Contribution margin
2.Gross margin
3.Operating income
4.Fixed costs
Posted Date:-2021-11-17 14:57:25
The firms monthly cost of production is 1,46,000 at an output level of 8,000 units. If it achieves an output level of 12,000 units it will incur production cost of 1,94,000 cost of production for 15,000 units is
1.1,80,000
2.2,00,000
3.50,000
4.2,30,000
Posted Date:-2021-11-19 10:52:59
The main purpose of cost accounting is to:
1.Maximize profits.
2.Help in inventory valuation
3.Provide information to management for decision making
4.Aid in the fixation of selling price
Posted Date:-2021-11-17 14:58:35
The main types of costing for ascertaining costs do not include
1.Uniform costing
2.Standard costing
3.Marginal costing
4.Historical costing
Posted Date:-2021-11-18 09:24:31
The methods of job evaluation include:
1..Grading
2.Ranking
3.Points value
4.All of the above
Posted Date:-2021-11-17 15:00:52
The standard time required per unit of a product is 20 minutes. In a day of 8 working hours a worker gave an output of 30 units. If he gets a time rate of 20/hr., his total earnings under Halsey bonus scheme was:
1.200
2.192
3.180
4.16
Posted Date:-2021-11-18 09:31:32
the term = contribution' refers to?
1.The actual amount of profit made per unit.
2.The budgeted profit per unit.
3.The amount of profit which goes towards meeting the overheads of the business.
4.The difference between sales revenue and variable costs per unit.
Posted Date:-2021-11-18 09:21:21
Types of maintenance include the following except:
1.Routine
2.Overhaul
3.Emergency
4.Periodic
Posted Date:-2021-11-19 10:54:31
What is the company's margin of safety in?
1.1,600,000
2.2,400,000
3.25,60,000
4.None of the given options
Posted Date:-2021-11-17 14:54:31
When a business is faced with a limiting factor (one which limits the activity of an entity) and there is a choice to be made between options to follow, which of the following statements describes the optimal course of action?
1.Choose the option which gives the highest unit profit.
2.Choose the option which gives the highest unit contribution.
3.Aim to achieve a balance of activities covering all of the options.
4.Choose the option which gives highest contribution per unit of limiting factor.
Posted Date:-2021-11-18 09:22:31
When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
1.Economies of scale.
2.Constant returns to scale.
3.Diseconomies of scale.
4.A violation of the law of diminishing returns.
Posted Date:-2021-11-18 09:30:41
When job is very big and spread over long periods of time the method of costing adopted is
1.Process
2.Job
3.Contract
4.Operation
Posted Date:-2021-11-18 09:25:30
Which of the following bases would be most appropriate to apportion the cost of electric power to factory departments?
1.Number of outlet points
2.Amount metered out
3.Cubic capacity of premises
4.Kilowatt capacity of machines in department
Posted Date:-2021-11-18 09:38:30
Which of the following is a direct labour cost?
1.Supervisors'salaries in the factory.
2.Costs of the payroll accounting section.
3.A bonus paid to the store man.
4.The wages of an operative paid on the basis of output achieved.
Posted Date:-2021-11-18 09:17:00
Which of the following is calculated by a formula that uses net sales as denominator?
1.Inventory turnover ratio
2.Gross profit rate
3.Return on Investment
4.None of the given options
Posted Date:-2021-11-19 10:57:32
Which of the following is not a possible method of accounting for administration overheads?
1.Include as part of production overheads
2.Apportion to production, selling and distribution functions
3.Treat administration as a separate entity and treat the costs as such
4.Transfer to costing profit and loss account
Posted Date:-2021-11-19 10:54:58
Which of the following is not a production department?
1.Power department
2.Machining department
3.Refining department
4.Finishing department
Posted Date:-2021-11-19 10:58:17
Which of the following is not an assumption underlying the accountant's break-even chart?
1.Fixed costs remain fixed throughout the range charted
2.Selling prices do not change
3.Variable costs fluctuate inversely with volume
4.Unit variable costs remain constant throughout the range charted
Posted Date:-2021-11-18 09:33:11
Which of the following is/are not associated with ordering costs?
1.Interest
2.Insurance
3.Opportunity costs
4.All of the given options
Posted Date:-2021-11-19 10:59:44
Which of the following is/are reported in production cost report?
1.The costs charged to the department
2.How the costs were assigned to the output?
3.The equivalent units of production by the department
4.All of the given options
Posted Date:-2021-11-19 11:01:30
Which of the following statement is TRUE about FOH applied rates?
1.They are used to control overhead costs
2.They are based on actual data for each period
3.They are predetermined in advance for each period
4.None of the given
Posted Date:-2021-11-19 11:02:20