(1) Departmentalization of items of costs is known as primary distribution. (2) Redistribution of service departments, costs is known as secondary distribution. 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:-2021-11-17 14:29:55
A chemical process has normal wastage of 10% of input. In a period, 2,500 Kg of material were input and there was abnormal loss of 75 Kg. What quantity of good production was achieved?
1.2,175 kg
2.2,250 kg
3.2,425 kg
4.2,500 kg
Posted Date:-2021-11-17 14:42:24
A firm requires 16,000 nos. of a certain component, which is buys at 60 each. The cost of placing an order and following it up is 120 and the annual storage charges works out to 10% of The cost of the item. To get maximum benefit the firm should place order for ______________ Units at a time.
1.1,000
2.900
3.800
4.600
Posted Date:-2021-11-17 14:17:55
A material loss during production or storage due to evaporation or shrinkage is called:
1.Scrap
2.Waste
3.Spoilage
4.Material loss
Posted Date:-2021-11-17 14:18:49
Alpha company purchased a machine worth Rs 200,000 in the last year. Now that machine can be use in a new project which company has received this year. Now the cost of that machine is to be called:
1.Project cost
2.Sunk Cost
3.Opportunity cost
4.Relevant cost
Posted Date:-2021-11-17 14:31:55
Beginning goods in process were 15,000. The cost of goods manufactured is 245,000. What is the cost assigned to the ending goods in process?
1.45,000
2.15,000
3.30,000
4.There will be no ending Inventory
Posted Date:-2021-11-17 14:34:38
Continuous costing is also called
1.Operation costing
2.Process costing
3.Batch costing
4.Contract costing
Posted Date:-2021-11-17 14:12:26
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:-2021-11-17 14:03:22
Cost accounting has been developed because of ______________ of financial accounting.
1.limitations
2.expenditure
3.statutory requirements
4.both (a) and (b)
Posted Date:-2021-11-17 14:11:38
Example of semi-variable items include the following except:
1.Telephone
2.Repairs and maintenance
3.Depreciation of plant and machinery
4.Insurance of plant and building
Posted Date:-2021-11-17 14:29:17
For computing depreciation of an asset, the factors that are taken into consideration include the following except:
1.Historical cost
2.Expected useful life
3.Insurance premium
4.Estimated residual value
Posted Date:-2021-11-17 14:21:52
Fringe benefits are those for which efforts of the workers are not necessary and may include the following except:
1.Holiday pay
2.Attendance bonus
3.Production bonus
4.Employer's contribution to P.F.
Posted Date:-2021-11-17 14:23:59
If a company uses predetermined overhead recovery rates and at the end of a period finds that there has been an under-recovery of overhead, which of the following best explains how the under-recovery has occurred?
1.Actual overhead cost has exceeded the amount used as a basis for the establishment of the predetermined rate.
2.Actual overhead cost has been less than the amount used as a basis for the establishment of the predetermined rate.
3.Actual activity levels were higher than planned due to an increase in demand.
4.An expected price increase in the overhead costs which was built into the overhead recovery rate did not take place.
Posted Date:-2021-11-17 14:08:11
If a predetermined FOH rate is not applied and the volume of production is reduced from the planned capacity level, the cost per unit expected to:
1.Remain unchanged for fixed cost and increase for variable cost
2.Increase for fixed cost and remain unchanged for variable cost
3.Increase for fixed cost and decrease for variable cost
4.Decrease for both fixed and variable costs
Posted Date:-2021-11-17 14:37:09
If time allowed for a job is 10 hours, time taken for the job is 8 hours and rate of pay is 2 per hour, the bonus to the worker is:
1.1.20
2.2.00
3.3.20
4.None of the above
Posted Date:-2021-11-17 14:26:37
In furniture manufacturing use of nail, pins, glue, and polish which use to increase its esteem value that cost is treated as:
1.Direct material cost
2.Indirect material cost
3.FOH cost
4.Prime cost
Posted Date:-2021-11-17 14:35:58
It is possible for an item of overhead expenditure to be shared amongst many departments. It is also possible that this same item may relate to just one specific department. If the item was not charged specifically to a single department this would be an example of:
1.Apportionment
2.Allocation
3.Re-apportionment
4.Absorption
Posted Date:-2021-11-17 14:34:02
Juniper Limited's budgeted overhead in the last period was 170,000. Its overhead absorbed and incurred for the same period were 180,000 and 195,000 respectively. What is its amount of over- or under-absorption of overhead?
1.Under-absorption of 15,000
2.Under-absorption of 25,000
3.Over-absorption of 15,000
4.Over-absorption of 25,000
Posted Date:-2021-11-17 14:01:24
Maximum capacity of a plant refers to its:
1.Theoretical capacity
2.Normal capacity
3.Practical capacity
4.Capacity based on sales expectancy
Posted Date:-2021-11-17 14:31:19
Non-monetary incentives may include the following except:
1.Health and safety
2.Housing facilities
3.Education and training
4.Dearness allowance
Posted Date:-2021-11-17 14:06:40
Objectives of research and development costs include:
1.Maintaining present competitive position
2.Improving enterprise's competitive position
3.Exploring now market/products
4.All of the above
Posted Date:-2021-11-17 14:19:32
Prime cost + Factory overhead cost is:
1.Conversion cost.
2.Production cost.
3.Total cost.
4.None of given option.
Posted Date:-2021-11-17 14:00:43
Production overheads are absorbed into production units by the use of an overhead absorption rate. Which one of the following best describes how the absorption rate is calculated?
1.Total number of units produced divided by the total cost centre overheads.
2.Total number of units produced multiplied by the unit overhead cost.
3.Total cost centre overheads divided by the cost centre activity level.
4.Total indirect costs for the business divided by the total number of units produced.
Posted Date:-2021-11-17 14:07:25
Selling a product at a price equivalent to or below marginal cost is recommended for a short period in certain special circumstances, such as
1.Introducing a new product
2.Exploring foreign market
3.Driving out a weaker competitor
4.All of the above
Posted Date:-2021-11-17 14:17:13
The break-even point in units is calculated using ______________
1.Fixed expenses and the contribution margin ratio
2.Variable expenses and the contribution margin ratio
3.Fixed expenses and the unit contribution margin
4.Variable expenses and the unit contribution margin
Posted Date:-2021-11-17 13:58:38
The break-even point is that at which:
1.The level of activity at which the business operates most economically.
2.The level of activity at which the business makes neither a profit nor a loss.
3.The fixed costs are lowest.
4.The variable cost per unit is minimized.
Posted Date:-2021-11-17 14:08:51
The combination of direct material and direct labor is :-
1.Total production Cost
2.Prime Cost
3.Conversion Cost
4.Total manufacturing Cost
Posted Date:-2021-11-17 13:59:59
The cost expended in the past that cannot be retrieved on product or service
1.Relevant Cost
2.Sunk Cost
3.Product Cost
4.Irrelevant Cost
Posted Date:-2021-11-17 13:59:18
The distinction between direct and indirect labour helps to:
1.Measure efficiency of performance
2.Determine product cost more accurately
3.Ensure better cost analysis for decisions and control
4.All of the above
Posted Date:-2021-11-17 14:02:09
The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
1.First to be allocated to the ending inventory
2.Last to be allocated to the cost of goods sold
3.Last to be allocated to the ending inventory
4.First to be allocated to the cost of goods sold
Posted Date:-2021-11-17 14:33:22
The Hino Corporation has a breakeven point when sales are 160,000 and variable costs at that level of sales are 100,000. How much would contribution margin increase or decrease, if variable expenses dropped by 20,000?
1.37.5%.
2.60%.
3.12.5%.
4.26%
Posted Date:-2021-11-17 14:32:31
The Inventory Turnover ratio is 5 times and numbers of days in a year is 365.Inventory holding period in days would be
1.100 days
2.73 days
3.50 days
4.10 days
Posted Date:-2021-11-17 14:35:18
The margin of safety can be defined as:
1.The excess of budgeted or actual sales over budgeted or actual variable expenses
2.The excess of budgeted or actual sales over budgeted or actual fixed expenses
3.The excess of budgeted sales over the break-even volume of sales
4.The excess of budgeted net income over actual net income
Posted Date:-2021-11-17 13:58:06
The objective of work study is:
1.Material conservation
2.Time saving
3.Quality improvement and cost reduction
4.All of the above
Posted Date:-2021-11-17 14:02:44
The total of all direct expenses is known as
1.Total cost
2.Overhead
3.Prime cost
4.Work cost
Posted Date:-2021-11-17 14:13:04
The two aspects of material control are accounting aspect and ______________ aspect.
1.Financial
2.Economic
3.social
4.Operational
Posted Date:-2021-11-17 14:14:50
Value added is the change in
1.Face value
2.Market value
3.Book value
4.Realizable value
Posted Date:-2021-11-17 14:13:40
Wages analysis include:
1.Gross wages per product
2.Gross wages per operation or department
3.Gross wages per labour classification
4.Analysis of constituent of gross wages - direct/ lost time
Posted Date:-2021-11-17 14:27:47
What is the company's contribution margin ratio?
1.30%
2.50%
3.150%
4.None of given options
Posted Date:-2021-11-17 13:57:25
Which of the following cost is used in the calculation of cost per unit?
1.Total production cost
2.Cost of goods available for sales
3.Cost of goods manufactured
4.Cost of goods Sold
Posted Date:-2021-11-17 14:38:56
Which of the following definitions describe marginal cost?
1.The variable cost of one unit of product or service
2.A principle whereby variable costs are charged to cost units and the fixed costs attributable to the relevant period are written-off in full against the contribution for that period
3.Costs appropriate to aiding the making of specific management decisions
4.The price at which material identical to that which is used up could be replaced on the date of usage
Posted Date:-2021-11-17 14:21:03
Which of the following is not a cost implication of labourturnover?
1.Training
2.Recruiting
3.Ageing labour force
4.Damage of machine
Posted Date:-2021-11-17 14:24:37
Which of the following is not a means whereby factory overheads can be charged out to production?
1.Direct labour rate
2.Overtime rate
3.Machine hour rate
4.Blanket rate
Posted Date:-2021-11-17 14:30:41
Which of the following is not included in the objectives of maintenance of plant and machinery?
1.Reducing idle time
2.Reducing breakdown
3.Maintaining efficiency
4.Increasing life
Posted Date:-2021-11-17 14:22:40
Which of the following is not used as a base for apportionment of administration overheads?
1.Direct wages
2.Works cost
3.Conversion cost
4.Sales value
Posted Date:-2021-11-17 14:23:14
Which of the following is TRUE regarding Departmental Rates.
1.A departmental absorption rate is a rate of absorption based upon the particular department's overhead cost and activity level
2.A departmental absorption rate is a rate of absorption not based upon the particular department's overhead cost and activity level
3.A single rate of absorption used throughout an organization's production facility and based upon its total production costs and activity
4.None of the given options
Posted Date:-2021-11-17 14:25:59
Which of the following systems of inventory valuation computes cost of goods sold as a residual amount?
1.Weighted Average.
2.Last-in-First-out.
3.Periodic Inventory System.
4.Specific Identification.
Posted Date:-2021-11-17 14:28:21
Which of the following techniques is not meant for labour cost control?
1.Budgetary control
2.Standard costing
3.ABC analysis
4.Ratio analysis
Posted Date:-2021-11-17 14:25:20
Which of the following would be considered a major aim of a job order costing system?
1.To determine the costs of producing each job or lot
2.To compute the cost per unit
3.To include separate records for each job to track the costs
4.All of the given option.
Posted Date:-2021-11-17 14:41:25
With regard to break -even charts and break-even analysis, which of the following is true?
1.It is assumed that variable cost fluctuates in direct proportion to output
2.The break the break-even point is at the intersection of the sales line and the variable cost line
3.A break-even chart shown the maximum profit possible
4.A break-even chart is capable of dealing with any change of product mix
Posted Date:-2021-11-17 14:15:28