Overview of Cost – Corporate and Management Accounting MCQ

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Overview of Cost – Corporate and Management Accounting MCQ

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Dec 2016: Which of the following is not a part of the job order cost sheet___

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: Following information is given:Direct material purchased: ₹ 6,00,000Direct material consumed : ₹ 7,00,000Direct labour: ₹ 3,00,000Direct expenses: ₹2,50,000Manufacturing overheads: ₹ 3,00,000Prime cost will be____

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June 2016: Cost of production for 10,000 units: ₹ 1,60,000Opening stock of finished goods (1,000 units): ₹ 18,000Closing stock of finished goods (FIFO): ₹ 2,000 unitsSelling & distribution overheads: ₹ 2 per unit soldPro ht mark-up on selling price: 20%The amount of profit will be____

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June 2016: From the following particulars relating to Job No. 555, ascertain the total cost:Direct materials 16,000Direct labour 8,000Direct expenses 1,600Works overheads are recovered on the basis of 50% on prime cost and administrative overheads at 10% of works cost. Choose the correct option

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Dec 2015: Item(s) excluded from the cost sheet are

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June 2015: Following information is available regarding an organization:Direct material purchased: ₹ 1,50,000Direct material consumed: ₹ 80,000Direct labour: ₹ 50,000Direct expenses: ₹ 30,000Manufacturing overheads: ₹ 20,000The prime cost for the organization is –

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Dec 2014: Which of the following is not a type of job costing

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Dec 2014: Which of the following is to be included while preparing a cost sheet

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Following information relates to the production department of a factory:Materials used : ₹ 80,000Direct labour : ₹ 60,000Overheads : ₹ 40,000On an order carried out in the department, materials consumed amounted to ₹ 16,000. The overheads chargeable to this order on the basis of direct materials will be___

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Dec 2016: Following information has been collected from cost records of Bright Ltd.:Direct material: ₹ 5,00,000Direct labour: ₹ 3,00,000Factory overheads: 20% of factory cost.The number of factory overheads will be:

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Dec 2016: When the amount of overheads absorbed is less than the number of overheads incurred, it is called___

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June 2016: Which of the following statements are true____(i) Conversion costs and overheads are interchangeable terms(ii) Notional cost and imputed cost means the same thing(iii) Cost accounting is not needed by a non-profit organization(iv) Rent on the owned building is included in cost accounts.Select the correct answer from the options given below

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Dec 2015: Allotment of the entire costs to a cost centre or unit is known as___

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June 2015: A product “whose direct material costs and direct labour costs are ₹ 200 and ₹ 100 would consume 3 hours, 4 hours and 5 hours in department A, B & C respectively. The overheads absorption rate is – A: ₹ 4.5 per hour, B: ₹ 5 per hour and C: ₹ 10.5 per hour. The total cost of the product is

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June 2015: The budgeted fixed overheads amounted to ₹ 75,000. The budgeted & actual production amounted to 15,000 units & 20,000 units respectively. This means that there will be an___

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Dec 2014: The budgeted fixed overheads amounted to ₹ 84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an___

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Dec 2014: Rent, rates and taxes paid for the building are apportioned on the basis of____

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June 2016: Direct labour cost will include___

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June 2015: Which of the following is not an objective of time-booking__

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Dec 2016: Amaze Ltd. had an opening inventory of 5,000 units costing ₹ 5 per unit on 1st April 2016. Following receipts and issues took place in April 2016:5th April 2016: Purchased 800 units @ ₹ 8 per unit12th April 2016: Purchased 200 units @ ₹ 8 per unit15th April 2016: Issued 3,000 units 25th April 2016: Purchased 1,000 units @ ₹ 9 per unitCost of inventory as of 30th April 2016 under weighted average basis will be____

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June 2016: The technique of economic order quantity is losing significance since the development of

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June 2016: XYZ Ltd. had 4,000 units of inventory in hand on 1st March 2016, costing ? 4 per unit. Purchases and issues of material during the month were as follows:Overview of Cost – Corporate and Management Accounting MCQ 5The cost of inventory as of 31st March 2016 under FIFO and weighted average cost method will be

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June 2015: In case of rising prices, the FIFO method will provide___

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Dec 2014: In an inflationary situation, which system of inventory valuation shows higher profits

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Dec 2016: In the management information system (MIS), top-level management uses

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Dec 2016: A technique where standardized principles and methods of cost accounting are employed by a number of different companies is termed as

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Dec 2016: Multiple costing is followed in___

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Dec 2016: Statement – ISunk cost is one that has already been incurred and cannot be avoided by decisions in the future.
Statement – IIFor decision making, it is required that such cost should be incurred.Select the correct answer from the options given below:

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June 2016: Management accounting does not include the function of

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June 2016: Those fixed costs which continue to be incurred even when there is no production are called

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June 2016: Cost Accounting Standard is related to bringing uniformity and consistency in the principles and methods of determining the selling and distribution overheads with reasonable accuracy.

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Which one of the following statements is false___

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June 2016: A process in which management is looking outward to examine how others achieve their performance levels and to understand the process they use, is called___

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Dec 2015: A business unit is known to be a profit centre

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Dec 2015: Conversion cost is the summation of

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Dec 2015: Management accounting is basically concerned with

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June 2015: Which of the following is the social purpose of cost audit –

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June 2015: Sunk costs are____

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June 2015: Interest on internally generated funds is an example of

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June 2015: The establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds is known as

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June 2015: Which of the following is generally used as a cost unit in the cement industry

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Dec 2014: Which of the following is not true? Fixed costs remain fixed

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Dec 2014: For a manufacturing company, which of the following is an example of period cost rather than a product cost

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Dec 2014: The cost of selecting one course of action and forgoing the other is known as

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Dec 2014: Relevant costs are

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Dec 2014: The cost that increases as the volume of activity decreases within the relevant range, is known as

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Dec 2014: The term used for process of ascertaining the cost’ is known as

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