question_answer 1)
What is the effect of increase in fixed cost?
A)
Reduces profit volume ratio done
clear
B)
Raises breakeven point done
clear
C)
Increases margin of safety done
clear
D)
Reduces contribution done
clear
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question_answer 2)
Which of the following is correct at breakeven point?
A)
Contribution = Fixed assets done
clear
B)
Sales Revenue = Total Cost - Variable Cost done
clear
C)
Profit = Fixed Cost + Variable Cost done
clear
D)
Sales Revenue = Variable Cost done
clear
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question_answer 3)
Why is profit volume ratio used? I. To compute the variable cost for any volume of sales. II. To determine breakeven point and the level of output required to earn a desired profit. III. To decide most profitable sales mix. Select the correct answer using the codes given below
A)
I and II done
clear
B)
II and III done
clear
C)
I and III done
clear
D)
All of these done
clear
View Solution play_arrow
question_answer 4)
The breakeven point in units is calculated using
A)
Fixed expenses and the contribution margin ratio done
clear
B)
Variable expenses and the contribution margin ratio done
clear
C)
Fixed expenses and the unit contribution margin done
clear
D)
Variable expenses and the unit contribution margin done
clear
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question_answer 5)
One of the basic differences between marginal costing and absorption costing is regarding the treatment of
A)
Direct material done
clear
B)
variable overheads done
clear
C)
Fixed overheads done
clear
D)
prime cost done
clear
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question_answer 6)
When is a business unit known to be a profit centre?
A)
If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control done
clear
B)
If its management is evaluated not only on revenues and expenses, but also on asset investment done
clear
C)
If its management is compensated based on the level of profitability done
clear
D)
If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply done
clear
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question_answer 7)
What is the most useful information derived from a break even chart?
A)
Relationship between revenue and costs at various levels of output done
clear
B)
Volume or output level at which ;the enterprises break even done
clear
C)
Amount of sales revenue needed to cover enterprise variable costs done
clear
D)
Amount of sales revenue needed to cover enterprise fixed costs done
clear
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question_answer 8)
What is the basic difference between a static budget and a flexible budget?
A)
A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range done
clear
B)
A static budget is for an entire production, but a flexible budget is applicable only to a single department done
clear
C)
Flexible budget allow management latitude in meeting goals, whereas a static budget is based on a fixed standard done
clear
D)
A flexible budget considers only variable costs, but a static budget considers all costs done
clear
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question_answer 9)
The margin of safety may be defined as
A)
The point at which breakeven point sales are achieved done
clear
B)
The excess of planned sales over the current actual sales done
clear
C)
The extent to which sales revenue exceeds fixed costs done
clear
D)
The difference between planned sales and breakeven point sales done
clear
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question_answer 10)
Which one of the following cost would not be termed as product costs?
A)
Administrative salaries done
clear
B)
Direct labour done
clear
C)
Indirect material done
clear
D)
Plant supervisors salary done
clear
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question_answer 11)
In which costing method, the fixed factory overhead are added to inventory valuation?
A)
Marginal costing done
clear
B)
Absorption costing done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer 12)
Match the following
List I List II A. Overhead efficiency variance 1. Power failure B. Overhead volume variance 2. Appointing low grade employees C. Labour idle time variance 3. Poor working condition D. Labour efficiency variance 4. Working days being more or less than budgeted
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]3 done
clear
B)
A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done
clear
C)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
D)
A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done
clear
View Solution play_arrow
question_answer 13)
Which budget is prepared first of all?
A)
Cash budget done
clear
B)
Master budget done
clear
C)
Budget for the key factor done
clear
D)
Flexible budget done
clear
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question_answer 14)
An increase in fixed costs will result, in which of the following?
A)
A decrease in the contribution-sales ratio done
clear
B)
A decrease in the contribution per point done
clear
C)
An increase in the breakeven point sales level done
clear
D)
An increase in the margin of safety done
clear
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question_answer 15)
Under the marginal costing concept/unit product cost would most likely be increased by
A)
a decrease in the number of units produced done
clear
B)
an increase in the number of units produced done
clear
C)
an increase in the commission paid to salesman for each units sold done
clear
D)
a decrease in the commission paid to salesman for each units sold done
clear
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question_answer 16)
Breakeven point is
A)
Where total revenue equals total costs done
clear
B)
Where total contribution equals variable costs done
clear
C)
Where total revenue equals fixed costs done
clear
D)
All of the above done
clear
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question_answer 17)
Prime cost plus factory overhead cost is
A)
conversion cost done
clear
B)
production cost done
clear
C)
total cost done
clear
D)
cost of goods sold done
clear
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question_answer 18)
Match the following
List I List II A. Labour cost variance 1. Actual hours paid (Standard rate - Actual rate) B. Labour rate variance 2. Standard cost - Actual cost C. Efficiency variance 3. Idle hours \[\times \] standard rate per hour D. Idle time variance 4. Standard rate (Standard hours - Actual hours worked)
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
B)
A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done
clear
C)
A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done
clear
D)
A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done
clear
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question_answer 19)
Product cost is normally
A)
Equal in both absorption and marginal costing done
clear
B)
Higher in marginal costing than absorption costing done
clear
C)
Higher in absorption costing than marginal costing done
clear
D)
None of the above done
clear
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question_answer 20)
Which of the following are advantages of marginal costing? I. Pricing decision II. True profit III. Difficult to classify IV. Ignores time value V. Break even analysis VI. Contribution is not final VII. Control over expenditure Select the correct answer using the codes given below
A)
I, II, V and VII done
clear
B)
I, III, V and VII done
clear
C)
III, IV, VI and VII done
clear
D)
I, II, VI and VII done
clear
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question_answer 21)
Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?
A)
Perpetual inventory done
clear
B)
LIFO done
clear
C)
FIFO done
clear
D)
Average cost done
clear
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question_answer 22)
Match the following
List I List II A. Variable costing 1. Absorption costing B. Valuation of stock is higher 2. Fixed costs excluded from inventory valuation C. Marginal and differential costs are same 3. Marginal costing D. Marginal costing 4. No change in fixed cost
Codes
A)
A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done
clear
B)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
C)
A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done
clear
D)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
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question_answer 23)
Match the following
List I List II A. Classification of costs into fixed and variable costs 1. Contribution B. Difference between sales and variable costs 2. P/V ratio C. Difference between sales at breakeven point and the total sales 3. Marginal costing D. Relative profitability 4. Margin of safety
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done
clear
B)
A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done
clear
C)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
D)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
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question_answer 24)
Match the following
List I List II A. Excess of actual sales over the break even sales volume 1. Contribution B. Sum of fixed cost and profit 2. Cost volume profit analysis C. Break even chart 3. Unaffected by change in output D. Breakeven point 4. Margin of safety
Codes
A)
A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done
clear
B)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
C)
A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done
clear
D)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
View Solution play_arrow
question_answer 25)
Under marginal costing, only ......costs are charged to products.
A)
Fixed done
clear
B)
variable done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer 26)
Which of the following pairs is/are correctly matched?
A)
Difference between sales and total cost is profit - Absorption costing done
clear
B)
Fixed costs recovered from contribution - Standard costing done
clear
C)
Both [a] and [b] done
clear
D)
None of the above done
clear
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question_answer 27)
Match the following
List I List II A. Absorption costing 1. .....is a logical extension of marginal costing B. Fixed expenses 2. .....is a valuable adjust to standard costing and budgetary costing C. Marginal costing 3. Contribution =
..+ Profit D. Break even analysis 4.
..is not very helpful in taking managerial decisions
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
B)
A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done
clear
C)
A\[\to \]3, B\[\to \]2, C\[\to \]4, D\[\to \]1 done
clear
D)
A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done
clear
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question_answer 28)
Match the following
List I List II A. Marginal cost 1.
..= Contribution\[\div \]Sales B. P/V ratio 2. Contribution = Selling price -.... C. Profit 3. ..... = Sales (1 - P/V Ratio) D. Variable costs 4. Margin of safety =..... \[\div \] P/V Ratio
Codes
A)
A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done
clear
B)
A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done
clear
C)
A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done
clear
D)
A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done
clear
View Solution play_arrow
question_answer 29)
Which of the following is not correctly matched?
A)
Unit fixed cost - Decreases with rise is output done
clear
B)
Labour and overhead - Cost of conversion done
clear
C)
Total variable cost - Remains constant per units done
clear
D)
None of the above done
clear
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question_answer 30)
Which of the following pairs is/are correctly matched?
A)
In this, stocks are valued at cost - Financial accounting done
clear
B)
It provides sufficient data for fixation of selling prices - Cost accounting done
clear
C)
Both [a] and [b] done
clear
D)
All of the above done
clear
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question_answer 31)
Which of the following statements is not correct?
A)
P/V ratio can be improved by reducing fixed cost done
clear
B)
Contribution is also known as gross margin done
clear
C)
P/V ratio can be improved by increasing the selling price done
clear
D)
Margin of safety can be improved by reducing fixed cost done
clear
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question_answer 32)
In the context of standard costing basic standard is established for
A)
Short period done
clear
B)
current period done
clear
C)
Indefinite period done
clear
D)
pre-defined period done
clear
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question_answer 33)
Consider the following statements I. Marginal costing and absorption costing are the same. II. For decision-making, absorption costing is more suitable than marginal costing. III. Cost volume profit relationship also denote breakeven point. VI. Marginal costing is based on the distinction between fixed and variable costs. Which of the statements given above are correct?
A)
I and II done
clear
B)
II and III done
clear
C)
III and IV done
clear
D)
IV and II done
clear
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question_answer 34)
The main purpose of cost accounting is to
A)
Assist management in decision-making done
clear
B)
maximise profits and minimise losses done
clear
C)
Comply norms issued by the Government of India from time to time done
clear
D)
Prepare cost accounts in line with the accounting standards done
clear
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question_answer 35)
A variable such as activity that causes cost over a given time is
A)
Cost driver done
clear
B)
cost behaviour done
clear
C)
Cost centre done
clear
D)
None of the above done
clear
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question_answer 36)
Cost accounting mainly helps the management in
A)
Earning profit done
clear
B)
Providing information to management done
clear
C)
Fixing prices of the products done
clear
D)
All of the above done
clear
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question_answer 37)
Cost accounting provides all of the following information except
A)
Product cost done
clear
B)
cost of goods sold done
clear
C)
Inventory values done
clear
D)
cash forecasts done
clear
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question_answer 38)
The total of all direct expense is known as ...........cost.
A)
Prime cost done
clear
B)
factory cost done
clear
C)
Selling cost done
clear
D)
cost of products done
clear
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question_answer 39)
Cost accounting emerged mainly on account of
A)
Statutory requirements done
clear
B)
Competition in the market done
clear
C)
Limitation of financial accounting done
clear
D)
All of the above done
clear
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question_answer 40)
Marginal costing in concerned with
A)
Fixed costs done
clear
B)
variable cost done
clear
C)
Semi-fixed cost done
clear
D)
none of the above done
clear
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question_answer 41)
Aggregate of direct cost is known as........... .
A)
Direct material cost done
clear
B)
Direct labour cost done
clear
C)
Prime cost done
clear
D)
Factory cost done
clear
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question_answer 42)
Aggregate of prime cost and factory overhead is
A)
Work on cost done
clear
B)
work cost done
clear
C)
Cost of production done
clear
D)
prime cost done
clear
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question_answer 43)
Salary paid to factory manager is an item of
A)
prime cost done
clear
B)
factory overhead done
clear
C)
Selling overhead done
clear
D)
none of the above done
clear
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question_answer 44)
...........is denned as the guidance and regulation by executive action of cost of operating on undertaking.
A)
Cost reduction done
clear
B)
Cost control done
clear
C)
Cost estimation done
clear
D)
Cost centre done
clear
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question_answer 45)
Re-order Level = Maximum Consumption\[\times \]..........
A)
Minimum Re order Period done
clear
B)
Maximum Re-order Period done
clear
C)
Minimum Consumption done
clear
D)
Maximum Consumption done
clear
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question_answer 46)
The quality of material to be ordered at one time
A)
EOQ done
clear
B)
EBQ done
clear
C)
BOQ done
clear
D)
EOB done
clear
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question_answer 47)
Prime cost can be also called
A)
Indirect cost done
clear
B)
direct cost done
clear
C)
Fixed cost done
clear
D)
opportunity cost done
clear
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question_answer 48)
...........in the aggregate of indirect material, indirect labour and indirect expense.
A)
Prime cost done
clear
B)
Factory cost done
clear
C)
Overhead done
clear
D)
Labour cost done
clear
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question_answer 49)
The value of benefit sacrificed in favour of an alternative course of action as known as
A)
Variable cost done
clear
B)
fixed cost done
clear
C)
Opportunity cost done
clear
D)
None of the above done
clear
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question_answer 50)
Carrying costs are otherwise called
A)
Ordering costs done
clear
B)
holding costs done
clear
C)
Out of stock cost done
clear
D)
none of the above done
clear
View Solution play_arrow
question_answer 51)
Minimum Level + Consumption during the lead time is called........
A)
Re-order Level done
clear
B)
EOQ done
clear
C)
Maximum Stock Level done
clear
D)
Maximum Level done
clear
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question_answer 52)
In deciding the EOQ the cost of inventory should be
A)
Minimum done
clear
B)
optimum done
clear
C)
Maximum done
clear
D)
All of these done
clear
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question_answer 53)
EOQ is calculated as...........
A)
\[\frac{2ca}{l}\] done
clear
B)
\[\sqrt{\frac{2\,pq}{l}}\] done
clear
C)
\[\sqrt{\frac{ca}{l}}\] done
clear
D)
\[\sqrt{\frac{2\,Pc}{l}}\] done
clear
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question_answer 54)
Which of these is not an objective of cost accounting?
A)
Ascertainment of Cost done
clear
B)
Determination of Selling Price done
clear
C)
Cost Control and Cost reduction done
clear
D)
Assisting Shareholders in decision making done
clear
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question_answer 55)
Element of cost of a product are:
A)
Material only done
clear
B)
Labour only done
clear
C)
Expenses only done
clear
D)
Material, Labour and expenses done
clear
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question_answer 56)
Describe the method of costing to be applied in case of Nursing Home.
A)
Operating costing done
clear
B)
Process costing done
clear
C)
Contract costing done
clear
D)
Job costing done
clear
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question_answer 57)
Calculate the prime cost from the following information Direct material purchased: ` 100000 Direct material consumed: ` 90000 Direct labor: ` 600000 Direct expenses: ` 200000 Manufacturing overheads ` 30000
A)
` 180000 done
clear
B)
` 200000 done
clear
C)
` 10000 done
clear
D)
` 210000 done
clear
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question_answer 58)
In process costing, if an abnormal loss arises, the process account is generally
A)
Debited with the scrap value of the abnormal loss units done
clear
B)
Debited with the full production cost of the abnormal loss units done
clear
C)
Credited with the scrap value of the abnormal loss units done
clear
D)
Credited with the full production cost of the abnormal loss units done
clear
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question_answer 59)
Which of the following statement(s) is/are correct? I. A materials requisition note is used to record the issue of direct material to a specific job. II. A typical job cost will contain actual costs for material, labour and production overheads, and non-production overheads are often added as a percentage of total production cost. III. The job costing method can be applied in costing batches.
A)
I only done
clear
B)
I and II only done
clear
C)
I and III only done
clear
D)
II and III only done
clear
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question_answer 60)
Information concerning A Ltd's single product is as follows Selling price ` 6 per unit, Variable production cost ` 1.20 per unit, Variable selling cost ` 0.40 per unit, Fixed production cost ` 4 per unit, Fixed selling cost ` 0.80 per unit. Budgeted production and sales for the year are ` 10000 units. What is the companys breakeven point?
A)
8000 units done
clear
B)
8333 units done
clear
C)
10000 units done
clear
D)
10909 units done
clear
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question_answer 61)
Overhead consists of all the following except
A)
Indirect materials done
clear
B)
Direct-labour done
clear
C)
Store-keepers done
clear
D)
none of the above done
clear
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question_answer 62)
Prime cost comprises the following combination of costs
A)
Direct materials and factory overhead done
clear
B)
Direct labour and factory overhead done
clear
C)
Direct material, direct labour and direct expense done
clear
D)
None of the above done
clear
View Solution play_arrow
question_answer 63)
The term cost refers to
A)
An asset that has given benefit and is now expired done
clear
B)
The price of product sold or services rendered done
clear
C)
The value of sacrifice made to require goods or service. done
clear
D)
The present value of future benefit done
clear
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question_answer 64)
According to which of the following methods of material pricing are close to current economic values
A)
LIFO done
clear
B)
FIFO done
clear
C)
HIFO done
clear
D)
All of these done
clear
View Solution play_arrow
question_answer 65)
Standard costing is
A)
Technique done
clear
B)
method done
clear
C)
Process done
clear
D)
None of these done
clear
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question_answer 66)
Store keeper should initiate a purchase requisition when stock reaches
A)
Minimum level done
clear
B)
maximum level done
clear
C)
Re-order level done
clear
D)
None of the above done
clear
View Solution play_arrow
question_answer 67)
The cost of........... is not included in the cost of production
A)
Normal loss done
clear
B)
abnormal loss done
clear
C)
Scrap done
clear
D)
abnormal profit done
clear
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question_answer 68)
Direct cost clearly be........with a product.
A)
Identified done
clear
B)
apportioned done
clear
C)
Allocated done
clear
D)
located done
clear
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question_answer 69)
............is a unit of quantity in term of which cost is ascertained.
A)
Cost centre done
clear
B)
Cost unit done
clear
C)
Profit centre done
clear
D)
Price centre done
clear
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question_answer 70)
If the minimum stock level is 3000 units and re-order quantity are 2000 units. What is the average stock level?
A)
5000 done
clear
B)
4000 done
clear
C)
3000 done
clear
D)
6000 done
clear
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question_answer 71)
In which of the following method of wage payment, wages on time basis are not guaranteed?
A)
Halsey plan done
clear
B)
Rowan plan done
clear
C)
Taylors differential piece rate system done
clear
D)
None of the above done
clear
View Solution play_arrow
question_answer 72)
Which of the following method of wage payment is most suitable where quality and accuracy of work of primary importance?
A)
Piece rate system done
clear
B)
Time rate system done
clear
C)
Halsey plan done
clear
D)
None of the above done
clear
View Solution play_arrow
question_answer 73)
.........method of wage payment provides for high rate of efficient workers.
A)
Taylors differential piece rate system done
clear
B)
Gants task piece rate system done
clear
C)
Time rate system done
clear
D)
Piece rate system done
clear
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question_answer 74)
Normally overtime payment is made at
A)
three times done
clear
B)
two times done
clear
C)
four times done
clear
D)
five times done
clear
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question_answer 75)
Which of the following is not premium bonus plan?
A)
Halsey plan done
clear
B)
Rowan plan done
clear
C)
Mericks plan done
clear
D)
None of these done
clear
View Solution play_arrow
question_answer 76)
Time lost in the course of normal activity is known as
A)
Idle time done
clear
B)
abnormal idle time done
clear
C)
Over time done
clear
D)
Normal idle time done
clear
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question_answer 77)
The main objective of cost accounting is to provide information to the management for
A)
Planning done
clear
B)
decision-making done
clear
C)
Policy-making done
clear
D)
None of the above done
clear
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question_answer 78)
Total costs of direct material, labour and expenses are included in
A)
Distribution cost done
clear
B)
prime cost done
clear
C)
Selling cost done
clear
D)
development cost done
clear
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question_answer 79)
The ascertainment of costs after they had been incurred is known as
A)
Differential costing done
clear
B)
Replacement costing done
clear
C)
Historical costing done
clear
D)
predetermined costing done
clear
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question_answer 80)
............... is a technique of cost control.
A)
Marginal costing done
clear
B)
Standard costing done
clear
C)
Job costing done
clear
D)
Contract costing done
clear
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question_answer 81)
A cost, in which payment is made to a factor of production is referred to as
A)
Opportunity cost done
clear
B)
imputed cost done
clear
C)
Absolute cost done
clear
D)
out of pocket cost done
clear
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question_answer 82)
A cycle manufacturing company will generally use the..................method of costing.
A)
Job costing done
clear
B)
multiple costing done
clear
C)
Unit costing done
clear
D)
process costing done
clear
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question_answer 83)
The process of distributing an item of cost over several cost centres is known as
A)
Cost absorption done
clear
B)
cost apportionment done
clear
C)
Cost allocation done
clear
D)
None of the above done
clear
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question_answer 84)
...............method of costing will be suitable for oil refineries.
A)
Operation costing done
clear
B)
Process costing done
clear
C)
Job costing done
clear
D)
Batch costing done
clear
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question_answer 85)
Overhead costs of operating a machine may be absorbed by using
A)
Rate per second of operating the machine done
clear
B)
Rate per minute of operating the machine done
clear
C)
Rate per hour of operating the machine done
clear
D)
Either [a] or [b] done
clear
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question_answer 86)
Bin card is also known as
A)
Stores ledger done
clear
B)
stock card done
clear
C)
Material bill done
clear
D)
none of the above done
clear
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question_answer 87)
In ............ method, the price of the oldest available stock is taken as the issue price.
A)
Weighted average done
clear
B)
LIFO done
clear
C)
FIFO done
clear
D)
HIFO done
clear
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question_answer 88)
The quantity of material which is ordered at the time of placing an order is referred to as
A)
ABC quantity done
clear
B)
Minimum quantity done
clear
C)
Maximum quantity done
clear
D)
economic order quantity done
clear
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question_answer 89)
...............are incurred every time an order is placed and include cost of placing an order, transportation cost, cost of inspecting goods etc.
A)
Storage costs done
clear
B)
Ordering costs done
clear
C)
Either [a] or [b] done
clear
D)
None of the above done
clear
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question_answer 90)
............are incurred on the maintenance of material in stores and comprise of costs related to handling, obsolescence, pilferage etc.
A)
Carrying costs done
clear
B)
Ordering costs done
clear
C)
Either [a] or [b] done
clear
D)
None of the above done
clear
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question_answer 91)
In case of inter-departmental issue of material ......is issued.
A)
credit note done
clear
B)
Debit note done
clear
C)
Material transfer note done
clear
D)
Stores requisition note done
clear
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question_answer 92)
ABC analysis is a technique of
A)
Cost control done
clear
B)
budgetary control done
clear
C)
Inventory control done
clear
D)
None of the above done
clear
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question_answer 93)
A manufacturer uses 7500 units of a material 'Z' per year. The material cost is ` 15 per unit and carrying cost is 40% per annum of average inventory cost. The cost of placing order is ` 36. Calculate EOQ and number of orders placed per annum.
A)
250 units, 30 times done
clear
B)
300 units, 25 times done
clear
C)
500 units, 15 times done
clear
D)
150 units, 50 times done
clear
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question_answer 94)
Method to measure labour turnover is
A)
Separation method done
clear
B)
Replacement method done
clear
C)
Flux method done
clear
D)
All of the above done
clear
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question_answer 95)
The cost of abnormal idle time is transferred to
A)
Costing manufacturing A/c done
clear
B)
Costing profit and loss A/c done
clear
C)
Costing trading A/c done
clear
D)
None of the above done
clear
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question_answer 96)
Which of the following item(s) is/are included in overheads?
A)
Depreciation on office furniture done
clear
B)
Rent of office building done
clear
C)
Electricity charges of office done
clear
D)
All of the above done
clear
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question_answer 97)
Administrative overheads include
A)
audit and legal fees . done
clear
B)
Office rent, rates and taxes done
clear
C)
Salaries of administrative staff done
clear
D)
All of the above done
clear
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question_answer 98)
Salary paid to supervisor is an example of
A)
Selling overhead done
clear
B)
Production overhead done
clear
C)
Manufacturing overhead done
clear
D)
Administrative overhead done
clear
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