Practice Test

Q1) Which of these is not an objective of Cost Accounting? Show Answer

Q2) A profit centre is a centre ………. Show Answer

Q3) Responsibility centre can be categorized into: ………. Show Answer

Q4) Cost Unit is defined as: ………. Show Answer

Q5) Fixed cost is a cost: ………. Show Answer

Q6) Uncontrollable costs are the costs which ………. be influenced by the action of a specified member of an undertaking Show Answer

Q7) Element/s of Cost of a product are: Show Answer

Q8) Abnormal cost is the cost: ………. Show Answer

Q9) Conversion cost includes cost of converting ………. into ………. Show Answer

Q10) Sunk costs are .... Show Answer

Q11) Describe the method of costing to be applied in case of Nursing Home: ………. Show Answer

Q12) Describe the cost unit applicable to the Bicycle industry: ………. Show Answer

Q13) Cost accounting ………. Show Answer

Q14) Which of the following is feature of job costing? Show Answer

Q15) ………. may be defined as the technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision-making. Show Answer

Q16) In which of the following cost account¬ing has do not have any role? Show Answer

Q17) ………. is form of specific order costing which applies where work is undertaken as per customer's specific requirement. Show Answer

Q18) Maintenance department in a factory is a ………. Show Answer

Q19) Process Costing is generally adopted by: Show Answer

Q20) Costs of direct material, direct labour and direct expenses can be directly allocated or identified with a particular cost centres or a cost unit are the examples of ………. Show Answer

Q21) ………. method of costing is used in large scale contract, as in case of building construction. Show Answer

Q22) Indirect costs are also known as ………. Show Answer

Q23) ………. is a specialized system of job costing applied to long-term contracts. Show Answer

Q24) ………. is the name given to the technique whereby standard costs are pre¬determined and subsequently compared with the recorded actual costs. Show Answer

Q25) ………. represents the resources that have been sacrificed to attain a particular objective. Show Answer

Q26) Indirect costs are ………. to cost centres or cost units. Show Answer

Q27) Standard costing is not suitable ………. Show Answer

Q28) ………. method of costing is used when it is desired to ascertain the cost of carrying out an operation in a department. Show Answer

Q29) Which of the following is not objective of cost accounting? Show Answer

Q30) A company presently does not utilize its available capacity. In case of full capacity utilization, the cost per unit shall ………. Show Answer

Q31) Service costing is also known as ………. Show Answer

Q32) One of the most important technique in cost planning is : ………. Show Answer

Q33) CIMA, London defines ………. as, “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” Show Answer

Q34) The variable cost per unit is: ………. Show Answer

Q35) Which of the following difficulty is not faced at the time installation of costing system in any organization? Show Answer

Q36) The total cost for producing 10 items is Rs. 15 and that for producing 15 items is Rs. 20. What is the fixed cost? Show Answer

Q37) Cost accounting ………. Show Answer

Q38) The main purpose of cost accounting is to: ………. Show Answer

Q39) Direct costing technique can be applied: Show Answer

Q40) The CIMA, London, defines a ………. as, “a unit of product or service in relation to which costs are ascertained.’’ Show Answer

Q41) The cost accountant is intimately connected with the ………. Show Answer

Q42) The term ………. is defined as the amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. Show Answer

Q43) Which of the following cannot be treated as are direct beneficiary of cost accounting? Show Answer

Q44) Pre- determined costs may be either: Show Answer

Q45) Who may by order direct cost audit of a company, if in its opinion it is necessary to do so? Show Answer

Q46) Which of the following statement is false? Show Answer

Q47) Which of the following is not method of costing? Show Answer

Q48) If financial records can yield all the necessary costing information, it is not necessary to have a separate costing department. Show Answer

Q49) A ………. is a planned cost for a unit of product of service rendered. Show Answer

Q50) ………. is defined as, “the techniques and process of ascertaining costs”. Show Answer

Q51) Historical cost is the actual cost, deter¬mined ………. Show Answer

Q52) A power house in a factory is a ………. Show Answer

Q53) The management accounting data is derived from the ………. Show Answer

Q54) ………. are those cost, which can be identified easily and indisputably with a unit of operation or costing unit or cost centre. Show Answer

Q55) Service costing is used by ………. Show Answer

Q56) If costs are classified “By behaviour" then which of the following is the correct classification? Show Answer

Q57) Which of the following report is not generated by cost accounting? Show Answer

Q58) Costs of indirect material, indirect labour and indirect expenses in aggregate constitute the ………. Show Answer

Q59) ………. is a pre-determined cost based on past performance adjusted to anticipated changes. Show Answer

Q60) Which of the following is purpose of cost accounting? Show Answer

Q61) Indirect costs ………. to cost units or cost centres and have to be absorbed or recovered into cost units are termed as indirect costs. Show Answer

Q62) CIMA, London defines ………. as, “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” Show Answer

Q63) ………. is the aggregate cost related to a cost unit, which consists of a group of similar articles which maintain its identity throughout one or more stages of production. Show Answer

Q64) Which of the following statement is false? Show Answer

Q65) Interest paid on own capital not involving any cash outflow is example of: Show Answer

Q66) An example of fixed cost is: ………. Show Answer

Q67) ………. is the name given to a common system of costing followed by number of firms in the same industries. Show Answer

Q68) Differential costs are also known as ………. Show Answer

Q69) The cost audit order can be given by the Central Government only in respect of Class of Companies which is required to maintain books of account under the provisions of ………. of the Companies Act, 2013. Show Answer

Q70) “Rent paid for the factory building which is temporarily closed” is example of ………. Show Answer

Q71) Cost accounting system can be installed .without management accounting. Show Answer

Q72) ………. is the cost of selecting one course of action and the loosing of the opportunities to carry out other course of action. Show Answer

Q73) If costs are classified “by time”, then which of the following is the correct classification? Show Answer

Q74) Cost of goods produced includes : Show Answer

Q75) Which of the following “cost unit” is suitable for Bicycle industries? Show Answer

Q76) Conversion Cost = ………. Show Answer

Q77) When a new factory is stared or when a new product is introduced, certain expenses are incurred. There are trial runs. Such costs are termed as ………. and treated as deferred revenue expenditure. Show Answer

Q78) Conversion cost is equal to the total of: Show Answer

Q79) ………. are also known as out of pocket costs. Show Answer

Q80) ………. are the costs, which have been created by a decision that was made in the past and cannot be changed by any decision that will be made in the future. Show Answer

Q81) Which of the following cost is control¬lable cost? Show Answer

Q82) Which of the following "cost unit” are suitable for chemical industries? Show Answer

Q83) __________ is normally incurred at a given level of output in the conditions in which that level of output is achieved. Show Answer

Q84) According to CIMA, A cost which can be influenced by its budget holder is known as ………. Show Answer

Q85) ………. is any sub-unit of an organization to which both revenues and costs are assigned, so that the responsibility of a sub-unit may be measured. Show Answer

Q86) ………. are not recorded in the books of account. Show Answer

Q87) Which of the following “cost unit" is not used by the organization engaged in providing services? Show Answer

Q88) Product costs are ………. Show Answer

Q89) __________ is an unusual or a typical cost whose occurrence is usually irregular and unexpected. Show Answer

Q90) In which of the following industries “contract costing” is used? Show Answer

Q91) ………. is a variable cost of one unit of a product or a service ie., a cost which would be avoided if that unit was not produced or provided. Show Answer

Q92) ………. are the costs incurred in relation to the temporary closing or a department/ division/ enterprise. Show Answer

Q93) Costs which are ascertained after they have been incurred are known as ………. Show Answer

Q94) Prime costs plus variable overhead is known as : ………. Show Answer

Q95) Notional costs are considered in ………. Show Answer

Q96) Costs that change in response to alter¬native courses of action are called: Show Answer

Q97) Which of the following method of costing is suitable for "Interior decoration”? Show Answer

Q98) ………. are also known as accounting costs. Show Answer

Q99) If Rs. 10 is spend on producing 10 units and Rs. 15 for producing 15, then the fixed cost per unit is: ………. Show Answer

Q100) The main difference between the profit centre and investment centre is: ………. Show Answer

Q101) A division of company, which produces and markets the product, can be called as ………. Show Answer

Q102) Which of the following is not a relevant cost? Show Answer

Q103) Which of the following is not a relevant cost? Show Answer

Q104) Which of the following cost is linked with the calculation of cost of inventories? Show Answer

Q105) Which of the following are features of a relevant cost except: ………. Show Answer

Q106) Which of the following method of costing is suitable for "Airline Company”? Show Answer

Q107) Which of the following statement is TRUE about the relevant cost? Show Answer

Q108) The cost of electricity bill of the factory is treated as: ………. Show Answer

Q109) A firm uses its own capital or uses its owner’s time and/or financial resources both are examples of ………. Show Answer

Q110) Which of the following would be considered to be an investment centre? Show Answer

Q111) The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as ………. Show Answer

Q112) If costs are classified by nature, then which of the following is the correct classification? Show Answer

Q113) In decision making all costs already incurred in past should always be: ………. Show Answer

Q114) Cost accounting concepts include all of the following except: ………. Show Answer

Q115) Which of the following statement is TRUE about historical cost? Show Answer

Q116) Colin Dury defined ………. as, “any activity for which a separate measurement of costs is desired". Show Answer

Q117) Expenses such as rent and depreciation of a building are shared by several departments these are: ………. Show Answer

Q118) Period costs are: ………. Show Answer

Q119) All of the following compose cost of goods sold except: ………. Show Answer

Q120) __________ can be influenced by the action of the executive heading the responsibility center. Show Answer

Q121) CIMA defines ………. as, a production or service, function, activity or item of equipment whose costs may be attributed to cost units. Show Answer

Q122) A segment of the business that gen¬erates both revenue and cost is called: ………. Show Answer

Q123) What will be the impact of normal loss on the overall per unit cost? Show Answer

Q124) A fixed cost: ………. Show Answer

Q125) All of the following are the features of fixed costs except: ………. Show Answer

Q126) ………. are constant per unit but change in totality. Show Answer

Q127) The basic assumption made with respect to fixed costs is that ………. Show Answer

Q128) Which of the following is NOT a relevant cost to decision making? Show Answer

Q129) Which of the following product cost is Included in prime cost and conversion cost? Show Answer

Q130) Which of the following costs would NOT be a period cost? Show Answer

Q131) Management Accounting seeks to serve the purpose of management to run a business more efficiently and thus uses the techniques of: ………. Show Answer

Q132) Which of the following is not a method of costing? Show Answer

Q133) Which of the following is not a Technique of costing? Show Answer

Q134) A cost centre is: ………. Show Answer

Q135) A cost centre is: ………. Show Answer

Q136) Cost centre may be - Show Answer

Q137) A ………. is a planned cost for a unit of product of service rendered. Show Answer

Q138) Raw materials directly identifiable as part of the final product is classified as: Show Answer

Q139) Inventory consists of ………. Show Answer

Q140) Which of the following statement is correct in relation to “Need for proper inventory control”? Show Answer

Q141) Inventory is valued at ………. Show Answer

Q142) Inventory held for sale in the ordinary course of business is known as ………. Show Answer

Q143) Which of the following method is based on the assumption that, latest consignment of a materials or goods manufactured are exhausted first and the closing stock is valued at the cost of earliest lot in hand? Show Answer

Q144) ………. are those cost, which can be identified and traceable to particular product or costing unit or cost centre. Show Answer

Q145) Wood used in production of tables and chairs, steel bars used in steel factory etc. are the examples of ………. Show Answer

Q146) ………. are those items, which are moving at a slow rate and this may arise due to general depression in demand due to keen competition. Show Answer

Q147) ………. are those items which are not moving temporarily but their movement is expected shortly. Show Answer

Q148) If small quantities of direct material used in the end product like gums and threads are used in binding books then it may be categorized as ………. Show Answer

Q149) Which of the following technique can be used for inventory control? Show Answer

Q150) ………. is an optimum quantity of material to be ordered every time an order is placed. EOQ may be defined as that quantity of purchase which minimizes material order cost and material carrying cost. Show Answer

Q151) The model and formula of EOQ was developed by ………. in 1913. Show Answer

Q152) Under ………. a continuous record of receipt and issue of materials is maintained by the stores department and the information about the stock of material is always available. Show Answer

Q153) ………. purchase means the purchase of goods or material such that delivery immediately precedes their use. Show Answer

Q154) Out of the following, what is not the work of purchase department? Show Answer

Q155) Which one out of the following is not an inventory valuation method? Show Answer

Q156) In case of rising prices (inflation), FIFO method will: ………. Show Answer

Q157) In case of rising prices (inflation), LIFO will: ………. Show Answer

Q158) The labour cost which is traceable or identified to particular product or cost centre is known as - Show Answer

Q159) Rent free accommodation or accommodation provided at concessional rate should be classified as: Show Answer

Q160) ………. is process whereby company make assessment of particular job to know how worth is it. Show Answer

Q161) Direct labour cost ………. Show Answer

Q162) Direct labour cost is ………. in nature. Show Answer

Q163) Which of the following is not objective of time-keeping? Show Answer

Q164) In relation to labour cost “Production Bonus” will be classified as ………. Show Answer

Q165) When some benefit or allowances are given to employee in addition to normal wages / salary, then such additional benefits are popularly called as ………. Show Answer

Q166) __________ refers to correct recording of the employees' attendance time. Show Answer

Q167) Overhead refers to ………. Show Answer

Q168) Allotment of whole item of cost to a cost centre or cost unit is known as _____ Show Answer

Q169) Overhead cost covers ………. Show Answer

Q170) If an item of overhead expenditure is charged specifically to a single department this would be an example of: Show Answer

Q171) The arrangement of various items of overhead costs in logical groups having regard to their nature is known as ………. Show Answer

Q172) ………. implies the allotment of whole items of cost to cost centres or cost units whether it may be production cost centres or service cost centres. Show Answer

Q173) The process of distribution of over¬ heads allotted to a particular department or cost centre over the units produced is called ………. Show Answer

Q174) If overheads are classified by “element wise” then which of the following classification is correct? Show Answer

Q175) Cost of primary packing necessary for protecting the product or for convenient handling, should ………. Show Answer

Q176) If actual overheads are less than predetermined overheads then it is case of: Show Answer

Q177) If actual overheads are more than pre- determined overheads then it is case of: Show Answer

Q178) Opening Stock = 25,000 units, Closing Stock = 15,000 units, Purchases = 1,90,000 units. (Take 1 year = 360 days). Stock Velocity = ? Show Answer

Q179) Inventory turnover ratio = 2.5 times, Opening Stock = 90,000 units, Closing Stock = 1,10,000 units. Purchases = ? Show Answer

Q180) Stock Velocity =180 days, Material consumed = 1,50,000, Closing Stock = 62,500 units. Opening stock = ? Show Answer

Q181) If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is: Show Answer

Q182) A management consultancy recovers overheads on chargeable consulting hours. Budgeted overheads were Rs. 6,15,000 and actual consulting hours were 32,150. Over¬heads, were under-recovered by Rs. 35,000. If actual overheads, were Rs. 6,94,075, what was the budgeted overhead absorption rate per hour ? Show Answer

Q183) Following data are made available by the company for the year ended 31.3.2019: Administrative overheads = Rs. 1,58,342
Production overheads = Rs. 3,48,482
Factory cost = Rs. 10,57,736
Work-in-progress = Rs. 25,487
Machine hour = 4,188 hours
Absorption rate for absorption of production overhead = ?
Show Answer

Q184) Direct material = Rs. 2,100, Direct wages = Rs. 660. Overhead absorption rate for Ma¬chining, Assembly, Packing departments was respectively Rs. 4.5, Rs. 1.4, Rs. 2.5 per hour.
Requires working of 180, 120 & 40 hours work in Machining, Assembly and Packing department respectively. The factory adds 30% on the factory cost to cover administration & selling overheads and profit. Selling price = ?
Show Answer

Q185) B Ltd. estimated that during the year 75,000 machine hours would be used and it has been using an overhead absorption rate of Rs. 6.40 per machine hour in its machining department. During the year the overhead expenditure amounted to Rs. 4,72,560 and 72,600 machine hours were used. Which one of the following statements is correct? Show Answer

Q186) A business always absorbs its overheads on labour hours. In the 8th period, 18,000 hours were worked, actual overheads were Rs. 2,79,000 and there was Rs. 36,000 over-absorption. The overhead absorption rate per hours was: Show Answer

Q187) A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs. 1,690 and incurred overheads of Rs. 694. What was the prime cost of the job? Show Answer

Q188) Job 21 was unfinished at the end of the accounting period. The total cost assigned to the job is Rs. 12,000 of which Rs. 3,000 is direct material. Factory overhead is allocated to goods ill process at 150% of direct labour cost. What was the amount of direct labour charged to Job 21? Show Answer

Q189) The production cost to produce one unit of finished goods was Rs. 45. Direct materials were 1/3 of the total cost, and direct labour was 40% of the combined total of direct labour and direct materials. The cost for direct material s, direct labour, and factory overhead was: Show Answer

Q190) Dec 2014: The term used for 'process of ascertaining the cost’ is known as — Show Answer

Q191) Dec 2014: Which element of total cost is common in prime cost and conversion cost — Show Answer

Q192) Dec 2014: The cost that increases as the volume of activity decreases within the relevant range, is known as — Show Answer

Q193) Dec 2014: Which of the following is generally used as cost unit of brick works— Show Answer

Q194) Dec 2014: Relevant costs are — Show Answer

Q195) Dec 2014: Which of the following is not considered as a function of management accounting? Show Answer

Q196) Dec 2014: The cost of selecting one course of action and forgoing the other is known as — Show Answer

Q197) Dec 2014: Expenditure on labour and materials that cannot be economically identified with a specific saleable cost unit is known as — Show Answer

Q198) Dec 2014: For a manufacturing com¬pany, which of the following is an example of period cost rather than a product cost— Show Answer

Q199) Dec 2014: Which of the following is known as full costing — Show Answer

Q200) Dec 2014: Which of the following is not true? Fixed costs remain fixed — Show Answer

Q201) Dec 2014: According to Section 2(13) of the Companies Act, 2013, ‘books of account' does not require maintenance of which of the following records — Show Answer

Q202) June 2015: Which of the following is generally used as cost unit in cement industry — Show Answer

Q203) June 2015: Which of the following is not an objective of management ac¬counting — Show Answer

Q204) 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 — Show Answer

Q205) June 2015: Costs which are constant for a given level of output and then increase by a fixed amount at a higher level of output are called — Show Answer

Q206) June 2015: Interest on internally generated funds is an example of — Show Answer

Q207) June 2015: Cost unit applicable to bicycle industry is — Show Answer

Q208) June 2015: Sunk costs are — Show Answer

Q209) June 2015: Fixed cost is a cost — Show Answer

Q210) June 2015: Which of the following is the social purpose of cost audit— Show Answer

Q211) June 2015: Rent, rates and insurance of factory and office are examples of— Show Answer

Q212) Dec 2015: Management accounting is basically concerned with — Show Answer

Q213) Dec 2015: Cost accounting is — Show Answer

Q214) Dec 2015: Conversion cost is the summation of — Show Answer

Q215) Dec 2015: A cost centre which is engaged in production activity by conversion of raw material into finished product is called — Show Answer

Q216) Dec 2015: A business unit is known to be a profit centre — Show Answer

Q217) Dec 2015:
Statement-I:
The activities or operations of every cost centre should be homogeneous so as to ensure uniform basis of charging expenses within the centre.
Statement-II:
The activities or operation of each cost centre must be well defined and clearly identifiable.
Select the correct answer from the fol¬lowing —
Show Answer

Q218) June 2016: A process in which man¬agement is looking outward to examine how others achieve their performance levels and to understand the process they use, is called — Show Answer

Q219) June 2016 : Which one of the following statements is false — Show Answer

Q220) June 2016: Identify the cost which is not relevant or useful for decision making — Show Answer

Q221) 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. Show Answer

Q222) June 2016: Section _____ of the Companies Act, 2013 gives the cost auditor same power as the financial auditor has under section _____ of the Companies Act, 2013. Show Answer

Q223) June 2016: Those fixed costs which continue to be incurred even when there is no production are called — Show Answer

Q224) June 2016:A direct cost is a cost which can be classified on the basis of— Show Answer

Q225) June 2016: Management accounting does not include the function of — Show Answer

Q226) Dec 2016: Which of the following is/ are tool(s) and technique(s) of management accounting? Show Answer

Q227) Dec 2016: Statement - I
Sunk cost is one that has already been in¬curred and cannot be avoided by decisions in the future.
Statement • II
For decision making, it is required that such cost should be incurred.
Select the correct answer from the options given below —
Show Answer

Q228) Dec 2016: The prime function of management accounting is to — Show Answer

Q229) Dec 2016: Multiple costing is followed in — Show Answer

Q230) Dec 2016: The ascertainment of costs after they have been incurred is called — Show Answer

Q231) Dec 2016: A technique where standardized principles and methods of cost accounting are employed by a number of different companies is termed as — Show Answer

Q232) Dec 2016: A cost centre is — Show Answer

Q233) Dec 2016: In the management information system (MIS), top level management uses Show Answer

Q234) Dec 2016: Which of the following is an irrelevant cost — Show Answer

Q235) Dec 2014: In inflationary situation, which system of inventory valuation shows higher profits — Show Answer

Q236) June 2015: Which of the following method is based on the assumption that costliest materials are issued first and inventory is valued at the lowest possible price — Show Answer

Q237) June 2015: Following information is available regarding a product-X:
1st January, 2015:
Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2015: 100 units @ Rs. 5
12th January, 2015: 200 units @ Rs. 5.50
Issues:
2nd January, 2015: 30 units
18th January, 2015: 170 units
The value of closing stock according to FIFO method is —
Show Answer

Q238) June 2015: In case of rising prices, FIFO method will provide— Show Answer

Q239) Dec 2015: FIFO method of valuing material issues is suitable in times of — Show Answer

Q240) June 2016: In a situation of rising prices, profit and tax liability would be lower under _____ method than under _____ method of material issue pricing. Show Answer

Q241) June 2016: The technique of economic order quantity is losing significance since the development of — Show Answer

Q242) June 2016: Which one of the following is the correct sequence of the purchase procedure of inventory — Show Answer

Q243) Dec 2016: Amaze Ltd. had an opening inventory of 5,000 units costing Rs. 5 per unit on 1st April, 2016. Following receipts and issues took place in April, 2016:
5th April, 2016: Purchased 800 units @ Rs. 8 per unit
12th April, 2016: Purchased 200 units @ Rs. 8 per unit
15th April, 2016: Issued 3,000 units 25th April, 2016: Purchased 1,000 units @ Rs. 9 per unit
Cost of inventory as on 30th April, 2016 under weighted average basis will be —
Show Answer

Q244) Dec 2014: Which of the following is not a method used for time booking — Show Answer

Q245) Which of the following is not an objective of time-booking — Show Answer

Q246) June 2016: Which of the following is/ are not a purpose of time keeping —(i) Ascertaining labour cost of a job/ product/activity
(ii) Evaluating labour performance by comparing actual and budgeted time
(iii) Providing internal check against dummy workers.
Select the correct answer from the options given below —
Show Answer

Q247) June 2016: Direct labour cost will include — Show Answer

Q248) Dec 2016:
Statement - I
Low time wages do not necessarily mean low cost of production and high wages mean high cost of product.
Statement - II
Time and motion study, which is a function of engineering department, is useless for the determination of wages.
Select the correct answer from the options given below —
Show Answer

Q249) Dec 2014: Rent, rates and taxes paid for the building are apportioned on the basis of — Show Answer

Q250) Dec 2014: If the actual expenses fall short of the amount absorbed, it is known as — Show Answer

Q251) Dec 2014: The budgeted fixed over¬heads amounted to Rs. 84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an — Show Answer

Q252) June 2015: The following data is available for Akhil Ltd. for the year ended 31st March 2015:
Administrative overheads: Rs. 2,50,000
Production overheads: Rs. 2,74,200
Factory cost: Rs. 3,42,800
Work-in-progress: Rs. 74,000
Machine hour: 4,000 hours
The absorption rate for production over¬heads is —
Show Answer

Q253) June 2015: The budgeted fixed over¬heads amounted to Rs. 75,000. The budgeted and Actual production amounted to 15,000 units and 20,000 units respectively. This means that there will be an — Show Answer

Q254) June 2015: A product whose direct material costs and direct labour costs are Rs. 200 and Rs. 100 would consume 3 hours, 4 hours and 5 hours in department A, B & C respectively. Overheads absorption rate is - A: Rs. 4.5 per hour, B: Rs. 5 per hour and C: Rs. 10.5 per hour. The total cost of the product is — Show Answer

Q255) Dec 2015: Allotment of the entire costs to a cost centre or unit is known as — Show Answer

Q256) 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 owned building is included in cost accounts.
Select the correct answer from the options given below —
Show Answer

Q257) Dec 2016: When the amount of over¬heads absorbed is less than the amount of overheads incurred, it is called — Show Answer

Q258) Dec 2016:
Statement - I
Production departments and service departments are equally important for manufacturing industry.
Statement - II
To calculate cost of a product, service department cost should be redistributed among production department on a reasonable basis.
Select the correct answer from the options given below —
Show Answer

Q259) Dec 2016: Following information has been collected from cost records of Bright Ltd.:
Direct material: Rs. 5,00,000
Direct labour: Rs. 3,00,000
Factory overheads: 20% of factory cost The amount of factory overheads will be:
Show Answer

Q260) Dec 2016: Labour hour rate Administrative overheads are absorbed on the basis of — Show Answer

Q261) Dec 2014: If selling price of a product is Rs. 85,800 and the profit margin on cost is 10%, the amount of profit will be — Show Answer

Q262) Dec 2014: Which of the following is to be included while preparing a cost sheet — Show Answer

Q263) Dec 2014: Cost of production plus opening stock of finished goods minus closing stock of finished goods is equal to— Show Answer

Q264) Dec 2014: Which of the following is not a type of job costing — Show Answer

Q265) June 2015:
Net works cost: Rs. 3,00,000
Administrative overheads: Rs. 1,00,000 Opening stock of finished goods: Nil Closing stock of finished goods: Rs. 20,000 Selling overheads: Rs. 10,000
From the above information, the cost of sales will be —
Show Answer

Q266) June 2015: Following information is available regarding an organization:
Direct material purchased: Rs. 1,50,000
Direct material consumed: Rs. 80,000
Direct labour: Rs. 50,000
Direct expenses: Rs. 30,000
Manufacturing overheads: Rs. 20,000
The prime cost for the organization is—
Show Answer

Q267) June 2015: If the sales of a product is Rs. 94,080 and the profit margin on cost 12%, the amount of profit will be— Show Answer

Q268) Dec 2015: Item(s) excluded from cost sheet are — Show Answer

Q269) Dec 2015: The following information is extracted from the job ledger in respect of Job No. 404:
Material: Rs. 3,400
Wages: 80 hours @ Rs. 2.50 per hour
Variable overheads incurred for all jobs: Rs. 5,000 for 4,000 labour hours
If the job is billed for Rs. 4,200 the profit will be —
Show Answer

Q270) June 2016: Direct material cost Rs. 45,000; Direct labour cost is 40% of direct material cost; Royalties on production Rs. 4,000; Other direct expenses are 20% of prime cost. Prime cost will be — Show Answer

Q271) Dec 2016: Which of the following is not a part of job order cost sheet — Show Answer

Q272) Dec. 2017: Management Accounting and Cost Accounting are ………. to each other. Show Answer

Q273) Dec. 2017: Practical difficulty in the installation of a costing system is: Show Answer

Q274) Dec. 2017: A PSU company shall within 30 days from the date of receipt of the report of the cost auditor furnish explanation on every reservation or qualification contained therein to: Show Answer

Q275) Which of the following is true? Show Answer

Q276) Which of the following costs are treated as product cost
under variable costing- Show Answer

Q277) The term used for 'process of ascertaining the cost' is known as Show Answer

Q278) The cost that increases as the volume of activity decreases within the relevant range, is known as - Show Answer

Q279) Which of the following is not considered as a function of management accounting - Show Answer

Q280) The cost of selecting one course of action and forgoing the other is known as- Show Answer

Q281) Companies characterized by the production of heterogen- eous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit cost data- Show Answer

Q282) For a manufacturing company, which of the following is an example of period cost rather than a product cost- Show Answer

Q283) Which of the following is an objective to be achieved through Cost Accounting Standards
Show Answer

Q284) Rent, rates and insurance of factory and office are
examples of - Show Answer

Q285) Which of the following is generally used as cost unit in cement industry Show Answer

Q286) The objective of CAS-1 is - Show Answer

Q287) Which of the following is not an objective of management accounting Show Answer

Q288) According to Chartered Institute of Management Accountants (CIMA), cost attribution to cost units on the basis of benefits received from indirect activities e.g. ordering, setting-up, assuring quality is known as - Show Answer

Q289) 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 - Show Answer

Q290) Costs which are constant for a given level of output and then increase by a fixed amount at a higher level of output are called - Show Answer

Q291) Interest on internally generated funds is an example of - Show Answer

Q292) Cost unit applicable to bicycle industry is - Show Answer

Q293) Sunk costs are - Show Answer

Q294) Fixed cost is a cost: Show Answer

Q295) Assertion (A):
In management accounting, firm decisions on pricing policy can be taken.
Reason (R):
As marginal cost per unit is constant from period to period within a short span of time.
Select the correct answer from the option given below: Show Answer

Q296) A business unit is known to be a profit centre - Show Answer

Q297) Statement - I
The activities or operations of every cost centre should be homogeneous so as to ensure uniform basis of charging expenses within the centre.
Statement-II
The activities or operation of each cost centre must be well defined and clearly identifiable.
Select the correct answer from the following: Show Answer

Q298) Allotment of the entire costs to a cost centre or unit is known as. Show Answer

Q299) Assertion (A):
Cost accounting hides the relative efficiencies of different workers. Reason (R):
Cost accounting does not disclose profitable and non-profitable activities. Select the correct answer from the following- Show Answer

Q300) Management accounting is basically concerned with - Show Answer

Q301) Cost accounting is -
Show Answer

Q302) Conversion cost is the summation of: Show Answer

Q303) A cost centre which is engaged in production activity by conversion of raw material into finished product is called - Show Answer

Q304) A direct cost is a cost which can be classified on the basis of: Show Answer

Q305) Management accounting does not include the function of: Show Answer

Q306) 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 organisation (iv) Rent on owned building is included in cost accounts. Select the correct answer from the options given below:
Show Answer

Q307) Which one of the following statements is false: Show Answer

Q308) 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.
Show Answer

Q309) Those fixed costs which continue to be incurred even when there is no production are called: Show Answer

Q310) Which of the following is an irrelevant cost: Show Answer

Q311) Which one is not the objective of Cost Accounting standards:
Show Answer

Q312) Which of the following is/are tool(s) and technique(s) of
management accounting:
Show Answer

Q313) Statement - I:
Sunk cost is one that has already been incurred and cannot be avoided by decisions in the future.
Statement - II: For decision making, it is required that such cost should be incurred.
Select the correct answer from the options given below: Show Answer

Q314) The prime function of management accounting is to: Show Answer

Q315) The ascertainment of costs after they have been incurred is called- Show Answer

Q316) A technique where standardised principles and methods of cost accounting are employed by a number of different companies is termed as- Show Answer

Q317) A cost centre is - Show Answer

Q318) In a factory, research and development expenditure is budgeted to 9,00,000. This is the normal expenditure on research activities. Due to some reasons, research is unsuccessful. The research and development expenditure will be - Show Answer

Q319) The chief objective of cost accounting is to: Show Answer

Q320) Cost accounting differs from financial accounting in respect of: Show Answer

Q321) A power house which generates and supplies power is called: Show Answer

Q322) Costs which can be identified easily and indisputably with a unit of operation or costing unit or cost centre is called: Show Answer

Q323) The branch of accounting which primarily deals with
processing and accounting data for internal use in a concern is: Show Answer

Q324) Which of the following is not applied in Management
Accounting? Show Answer

Q325) A good costing system gives equal emphasis on cost ascertainment and cost _______ . Show Answer

Q326) The method of costing used both in a cinema and a hospital is _____ costing. Show Answer

Q327) ____ is a location, person or item of equipment for which cost may be determined and used for the purpose of cost control.
Show Answer

Q328) One of the most significant tools in cost planning is: Show Answer

Q329) Research cost undertaken at the request of the consumer Show Answer

Q330) The method of costing is suitable in chemical industries is: Show Answer

Q331) Management Accounting aims at: Show Answer

Q332) Assertion (A):
In management accounting firm decisions on pricing policy can be taken.
Reason (R):
As marginal cost per unit is constant from period to period within a short span of time.

Show Answer

Q333) In cost accounting interest on internally generated funds is classified as Show Answer

Q334) Practical difficulty in the installation of a costing system is : Show Answer

Q335) Where the nature of the product is complex and the costs cannot be charged directly, the most suitable method of costing to compute cost is: Show Answer

Q336) Management Accounting and Cost Accounting are ______ to each other. Show Answer

Q337) Management Accounting works on the output of: Show Answer

Q338) In Management Accounting, Analysis of accounting data are carried out with the help of: Show Answer

Q339) Which of the following does not come under the scope of management accounting? Show Answer

Q340) Which of the following is not an objectives of the Cost Accounting Standards, which has been issued by the Institute of Cost and Works Accountants of India? Show Answer

Q341) _____ is the cost of selecting one course of action and the losing of other opportunities to carry out that course of action.
Show Answer

Q342) The division of activities into unit level, batch level, product level, and facility level categories is commonly known as a: Show Answer

Q343) Assertion (A):
Management accounting can be defined as processing and presenting of accounting, cost accounting and other economic data.
Reason (R):
It is analysis of all the transactions, financial and physical, to enable effective comparison to be made between the forecasts and actual performance. Select the correct answer from the options given below:
Show Answer

Q344) Cost of Sales - Selling and Distribution Overhead + Closing Stock of Finished Goods - Opening Stock of Finished Goods = Show Answer

Q345) ______ is regarded as a specialised branch of accounting
which involves classification, accumulation, assignment and control of costs.
Show Answer

Q346) Primary packaging material is an example of: Show Answer

Q347) Monsoon is an example of key factor in which of the
following industries? Show Answer

Q348) The focus of Management accounting is on:
Show Answer

Q349) According to CIMA, prime cost is Show Answer

Q350) Rent of own factory premises is an example of: Show Answer

Q351) The opportunity cost of the equity capital invested in a business is considered in the computation of ___ Show Answer

Q352) _____ is a process to ensure that appropriate action is taken if costs exceed a pre-set allowance or actions to be taken if costs are expected to exceed the expected levels. Show Answer

Q353) Primary packing material is an example of _____ Show Answer

Q354) Which of the following concept is used in absorption costing? Show Answer

Q355) Unique Co. sells a single product for 28 per unit. If variable costs are 65% of sales and fixed costs total 9,800, the break-even point will be: Show Answer

Q356) Which of the following is not true about differential costs? Show Answer

Q357) Which one of the following is the Traditional approach for costing? Show Answer

Q358) The following are features of a relevant cost EXCEPT: Show Answer

Q359) Which of the following statement is TRUE about the relevant cost? Show Answer

Q360) In-Decision making all costs already incurred in past should always be:
Show Answer

Q361) In Cost accounting, unavoidable loss is charged to which of the following? Show Answer

Q362) An average cost is also known as:
Show Answer

Q363) When production is equal to sales, which of the following is true? Show Answer

Q364) Under which of the following, all cost of production is considered as product cost, regardless of whether they are variable or fixed in nature? Show Answer

Q365) What would be the attitude of the management in treating Sunk costs in decision making?
Show Answer

Q366) Mohan is running his own personal Financial services business. He has been offered a job for a salary of 45,000 per month which he does not availed. 45,000 will be considered as:
Show Answer

Q367) Which of the given cost does not become the part of cost unit?
Show Answer

Q368) Which of the following would be considered a major aim of a job order costing system? Show Answer

Q369) Re-ordering level is equal to:
Show Answer

Q370) Imputed cost is also called
Show Answer

Q371) Cost of production report summarizes data of:
Show Answer

Q372) Which of the following statement measures the financial position of the entity on particular time?
Show Answer

Q373) Indirect material, indirect labour and indirect expenses collectively form ______ cost.
Show Answer

Q374) Prime cost consists of direct ______ cost, direct wages and direct expenses. Show Answer

Q375) Cost _____ is the allotment of the whole items of cost to cost centers. Show Answer

Q376) The techniques and process of ascertaining costs is called
Show Answer

Q377) A good costing system gives equal emphasis on cost ____ and cost _____.
Show Answer

Q378) The factory cost is obtained by adding______ cost and factory _____, or _____ cost and ______ material. Show Answer

Q379) Basic methods of costing are ______ costing and _____ costing. Show Answer

Q380) Indirect material is a ____ overhead whereas managerial salary is a ____ overhead. Show Answer

Q381) The method of costing used in hospital is ____ costing.
Show Answer

Q382) Electricity charges are partly ____ and _____ Partly.
Show Answer

Q383) In cotton textile, the cost unit is ____ of cloth.
Show Answer

Q384) Single or output costing is used when the production is ____ identical and a ____ Article is produced. Show Answer

Q385) Cost of sales is cost of production plus ____ and ____ overhead.
Show Answer

Q386) Basic methods of costing are _____ costing and _____ costing. Show Answer

Q387) Rent on own premises is a _____ cost. Show Answer

Q388) ____ is obtained by deducting ____ cost from ____. Show Answer

Q389) Telephone expenses is a
Show Answer

Q390) A cost which has no involvement of cash outlay is called
Show Answer

Q391) Step costs are classified as
Show Answer

Q392) In job costing P. F. and ESI paid by the company for factory employees are accounted for as Show Answer

Q393) In a process cost system the unit cost is determined for a
Show Answer

Q394) The main purpose of cost accounting is to
Show Answer

Q395) Holiday pay is treated as:
Show Answer

Q396) Cost Accounting is:
Show Answer

Q397) The head office of the institute of Cost and Works Accountants of India is situated at:
Show Answer

Q398) When the Cost and Works Accountants Act was passed in India?
Show Answer

Q399) Ascertainment of cost with the help of actual expenses incurred in
termed as:
Show Answer

Q400) Which method of Costing is used in oil industry?
Show Answer

Q401) Cost accounts are maintained compulsorily for compliance to statutory
obligation in:
Show Answer

Q402) Cost Accounting is based:
Show Answer

Q403) Cost Accounting is:

Show Answer

Q404) Which method of costing is used in Motor Car Industry:
Show Answer

Q405) Multiple costing methods is used in:
Show Answer

Q406) Electricity generation company should employ:
Show Answer

Q407) Job costing is used in:
Show Answer

Q408) Contract costing is used in:
Show Answer

Q409) Cost accounting is a branch of
Show Answer

Q410) Cost accounting originated due to Show Answer

Q411) _______ costing method is used in cinemas.
Show Answer

Q412) _____ is the technique of ascertaining cost. Show Answer

Q413) The method of costing used in job order industries is known as
Show Answer

Q414) In ____ costing, the cost of a group of products is ascertained. Show Answer

Q415) The ascertainment of costs after they have been incurred is known as
Show Answer

Q416) Financial accounts _____ necessary information for management. Show Answer

Q417) To ascertain the cost of a given thing is called ____ Show Answer

Q418) Which of these is not an objective of Cost Accounting?
Show Answer

Q419) Elements of Cost of a product are:
Show Answer

Q420) Abnormal cost is the:
Show Answer

Q421) Which of the following production batch sizes will minimize cost where annual output is 20,000 units; set-up costs per batch are Rs 25; holding costs are Rs 3 per unit.

Show Answer

Q422) Maintenance department in a factory is a
Show Answer

Q423) Indirect costs are ____ to cost centres or cost units.
Show Answer

Q424) Service costing is also known as
Show Answer

Q425) Differential costs are also known as
Show Answer

Q426) The cost audit order can be given by the Central Government only in respect of Class of Companies which is required to maintain books of account under the provisions of _________ of the companies Act, 2013.
Show Answer

Q427) Which of the following is a cost-behavior oriented approach to product
costing? Show Answer

Q428) For external financial statement purpose. Inventories must be reported at:
Show Answer

Q429) Step costs are classified as a
Show Answer

Q430) The term 'sunk costs' refer to:
Show Answer

Q431) A company wishes to earn a 15% profit margin on selling price when quoting for a job which of the following is the profit mark-up on cost which will achieve the required profit margin?
Show Answer

Q432) "Rent paid for the factory building which is temporarily closed" is
example of _____
Show Answer

Q433) Abnormal cost is the cost:
Show Answer

Q434) Describe the cost unit applicable to the Bicycle industry:
Show Answer

Q435) Under which of the following inventory control technique, maximum and minimum level of each stock is laid down: Show Answer

Q436) The annual demand is 1,000 units. The unit price is rs 10 per unit. The carrying cost of inventory is 10% and the ordering cost is rs 5 per order. The economic order lot to be ordered is - Show Answer

Q437) When prices fluctuate widely, the method that will smooth out the
effect of fluctuations is - Show Answer

Q438) When prices of materials have a rising trend, then the suitable method for issuing the materials will be -
Show Answer

Q439) A company manufactures 5,000 units of a product per month. The cost of placing an order is Rs 100. Purchase price of the raw material is 10 per kg. Average consumption of raw material is 275 kgs per week. The carrying cost of inventory is 20% per annum. The economic order quantity is- Show Answer

Q440) Which type of material is classified as 'A' type in ABC analysis:
Show Answer

Q441) Which of the following formula cannot be used to calculate re-order level:
Show Answer

Q442) Which of the following is recorded by bin card- Show Answer

Q443) If the minimum stock level and average stock level of raw material 'A' are 4,000 and 9,000 units respectively, what is its reorder quantity- Show Answer

Q444) The method of regular physical verification of material throughout the year is known as-
Show Answer

Q445) In inflationary situation, which system of inventory valuation shows higher profits
Show Answer

Q446) In case of rising prices, FIFO method will provide Show Answer

Q447) Under which of the following inventory control techniques, two piles or bundles are maintained for each item of stock - Show Answer

Q448) A store ledger is a record of receipts, issues and closing
balances of material by entering -
Show Answer

Q449) Bill of material acts as an authorization to the stores department in procuring the material and all the materials listed on the bill are sent to the - Show Answer

Q450) Which of the following method is based on the assumption that costliest materials are issued first and inventory is valued at the lowest possible price - Show Answer

Q451) For a product - X, following information is available: Maximum consumption
per week=300 units
Normal consumption
per week=200 units
Re-order period=2 to 4 weeks
The re-order level will be - Show Answer

Q452) A company requires 1,500 units of an item per month. The cost of each unit is 30. The cost of placing an order is 200 and the material carrying charges work out to be 20% of the average material. The economic order quantity (EOQ) is-
Show Answer

Q453) Following information is available regarding a product - X:
1st January, 2015:
Opening balance: 50 units @ Rs 4 Receipts:
5th January, 2015 : 100 units @ Rs 5
12th January, 2015: 200 units @ Rs 5.50
Issues:
2nd January, 2015 :30 units
18th January, 2015: 170 units
The value of closing stock according to FIFO method is - Show Answer

Q454) FIFO method of valuing material issues is suitable in times of-
Show Answer

Q455) About 50 units are required every day for a machine. Fixed cost of 50 is incurred for placing an order. The inventory carrying cost per unit amounts to 0.02 per day. The lead period is 32 days. Economic Order Quantity is- Show Answer

Q456) In a company, weekly minimum and maximum consumption of Material-A is 25 and 75 units respectively. The re-order quantity as fixed by the company is 300 units. The material is received within 4 to 6 weeks from issue of supply order.
Maximum level of Material-A is - Show Answer

Q457) The technique of economic order quantity is losing significance since the development of:
Show Answer

Q458) Following information is given for Component 'A': Normal usage 50 units per week, maximum usage 75 units per week, reorder period 4 to 6 weeks. The minimum level of stock will be: Show Answer

Q459) Quarterly consumption of materials= 2,000 kgs
Cost of placing an order = Rs 50
Cost per unit = Rs 40
Storage and other carrying costs = 8% of average inventory
The economic order quantity and number of orders to be placed per quarter of the year will be: Show Answer

Q460) Re-order quantity=300 kgs
minimum usage = 20 kgs. per day.
Minimum lead time=5 days.
Maximum stock level=400 kgs.
Re-order level will be: Show Answer

Q461) Which one of the following is the correct sequence of the purchase procedure of inventory:

Show Answer

Q462) 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:
March 8 - 500 units @ 5 per unit - 0 issued.
March 15 - 0 purchase - 2,000 units issued.
March 20 - 6,000 units @ 6 per unit - 0 issued.
March 28 - 0 purchase - 4,000 units issued
The cost of inventory as on 31st March, 2016 under FIFO and weighted average cost method will be:

Show Answer

Q463) 4,000 Kgs. of material is purchased @ 2 per Kg. Normal wastage is estimated at the rate of 10%. The wastage has recovery value of 1.10 per kg. Calculate cost of material of work order of 600 units, if each unit requires 1.5 kg. of material:
Show Answer

Q464) EOQ is 200 units, ordering cost 20 per order and total purchases 4,000 units. The carrying cost per unit will be: Show Answer

Q465) Which one of the following statements is true in ABC classification of materials - Show Answer

Q466) In a situation of rising prices, profit and tax liability would be lower under _____ method than under ____ method of material issue pricing. Show Answer

Q467) Cost of abnormal wastage is charged to-
Show Answer

Q468) Which of the following is considered as normal loss of material -
Show Answer

Q469) The maximum and minimum lead time is 4 weeks and 3 weeks respectively. If the maximum and minimum weekly consumption is 25 units and 20 units respectively, the re-ordering level will be - Show Answer

Q470) A firm requires 12,800 units of a certain component which it buys @ 60 each. The cost of placing an order and following it up is 150 and annual storage charges work out to 10% of the cost of items. Number of units to be ordered to get maximum benefit to the firm are - Show Answer

Q471) Which of the following are advantages of perpetual inventory system:
(i) No interruption of production process
(ii) More wastage of material
(iii) Detect loss of stock due to theft, shrinkage, fire, etc.
(iv) Ascertain stock without physical verification Select the correct answer from the options given below - Show Answer

Q472) Following statements are either true (T) or false (F):
(P) FIFO method of valuing material issues is suitable in time of rising prices
(Q) Valuation of closing stock is same under both FIFO and LIFO method
(R) Bin card makes a record of the quantity and value of materials kept in
the stores
(S) A bill of material gives a complete list of all material require with quantities for a particular job.
Select the correct answer from the options given below - Show Answer

Q473) A written comprehensive order, with specification, material code and quantity sent to inform the purchase department, of a need for material is called-
Show Answer

Q474) Choose the correct statements from the following:
(1) All the indirect taxes are added to the purchase price of material.
(2) Trade and cash discounts are deducted from the cost of material (3) ABC analysis is a value based system of material control
(4) In the garment manufacturing, the cost of thread and buttons are indirect material costs.
Select the answer from the options given below
Show Answer

Q475) 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 unit
12th April, 2016 = Purchased 200 units @ 8 per unit
15th April, 2016 = Issued 3,000 units
25th April, 2016 = Purchased 1,000 units @ 9 per unit
Cost of inventory as on 30th April, 2016 under weighted average basis will be:
Show Answer

Q476) A company produces a single product for which following data is available:
Average production per week = 200 units
Usage per unit = 10 Kgs.
Re-order level = : 8,000 Kgs.
Delivery time required = 2 weeks.
The minimum level of stock required will be -
Show Answer

Q477) A, B, C analysis is Show Answer

Q478) Two avoidable reasons for the difference between bin card and physical quantity of material may be _____ and wrong posting in the bin card. Show Answer

Q479) When prices fluctuate widely, which of the following method
will even out the effect of fluctuations?
Show Answer

Q480) Which of the following does not normally appear on a material requisition form?
Show Answer

Q481) In most of the organizations material control is generally
made as the specific responsibility of:
Show Answer

Q482) Which of the following differences in material stock adjusted by considering as part of material cost? Show Answer

Q483) This type of loss is connected with both inputs and output: Show Answer

Q484) Decision regarding centralized purchase of materials has to
be taken on the basis of: Show Answer

Q485) The rate per kg. of materia's P, Q, R and S are respectively 12, 15, 18 and 21. The input-Output Ratio of the materials are respectively 140%, 130%, 120% and 110%. If so, the most economical
material for production is:
Show Answer

Q486) During the time of inflation, the method of pricing material issues which leads to a lower material costs for a job is :
Show Answer

Q487) ABC Ltd. manufactures a product and the following
particulars are collected as below:
Normal Usage (unit per week) = 50
Minimum Usage (unit per week) = 25
Maximum Usage (unit per week) = 75
Re-order period (weeks) = 4-6
You are required to calculate re-order level: Show Answer

Q488) If the annual carrying cost of material Z is 4 per unit and its total carrying cost is 12,000 p.a., the economic order quantity of the
material is: Show Answer

Q489) The most suitable inventory control technique for spare parts is:
Show Answer

Q490) Under LIFO method, the purchases and issues are as follows:
March 1 Purchased 300 units @3 each
March 5 Purchased 600 units @ 4 each
March 6 Issued 500 units
March 12 Purchased 700 units @5 each
March 16 Issued 800 units
The value of closing stock shall be: Show Answer

Q491) Which of the following is not a cost price method of pricing of material issues?
Show Answer

Q492) Which of the following is not correct for calculation of re- ordering level of inventory?
Show Answer

Q493) ______ is a value based system of inventory control, in which materials are analyzed according to their value so that costly and more valuable materials are given greater attention.
Show Answer

Q494) Which of the following is not the work of purchase department: Show Answer

Q495) Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period : 14-28 days Show Answer

Q496) A manufacturing unit provides you the following
information:
Total input of material = 10,000 units.
Normal spoilage of the material = 4% of the input.
Total spoiled units = 550 units.
Total cost of the material @ Rs 10 per unit = Rs 1,00,000.
Sales value of the spoiled units = Rs 1 per unit.
Calculate the net cost of abnormal spoilage to be transferred to costing profit and loss account.
Show Answer

Q497) If EOQ is 200 units, ordering cost is Rs 20 per order and total purchases is 4,000 units. The carrying cost per unit will be: Show Answer

Q498) Which of the following is false in respect of Bills of materials?
Show Answer

Q499) Which of the following items can be classified as "C" as per ABC analysis of inventory control?
1. 5,000 units = Rs 60.
2. 2,000 units = Rs 100.
3. 32,000 units = Rs 17.
4. 28,000 units = Rs 12.
5. 60,000 units = Rs 3. Show Answer

Q500) Stores ledger is maintained to record:
Show Answer

Q501) Cost of Goods ______ Show Answer

Q502) In case of rising prices (Inflation), FIFO method will_____
Show Answer

Q503) The aspects of material control are Show Answer

Q504) When closing stock is over valued, what would its effect on profit? Show Answer

Q505) While calculating the EOQ, number of orders is calculated by:
Show Answer

Q506) Which of the following is correct?
Show Answer

Q507) The annual demand for a stock item is 2,500 units. The cost of placing an order is 80 and the cost of holding an item in stock for one year is 15.
Required: What is the EOQ?

Show Answer

Q508) It is assumed that 1,000 incurred to produce 100 units but after inspection it came to know that 10 units were lost. Then 1,000 will be
spread over:

Show Answer

Q509) Which of the following is not a method of pricing raw materials issues from stock?
Show Answer

Q510) Opening Stock of finished goods inventory of JK Company was 3,00,000. During the year company's cost of goods available for sale was 22,00,000. Sales were 20,00,000 with a 20% gross profit. Calculate cost of finished goods inventory at end of year.


Show Answer

Q511) The Star Corporation uses Raw Materials Z in a manufacturing process. Information as to balance on hand, purchases and requisition of raw materials Z is given below:
Jan 01 : Balance: 200 lbs. @1.50.
Jan 08 : Received 500 lbs. @ 1.55.
Jan 18 : Issued 100 lbs.
Jan 25 : Issued 260 lbs.
Jan 30 : Received 150 lbs. @ 1.60
If a perpetual inventory record of Raw Material Z is maintained on a FIFO basis, it will show a month end inventory of:


Show Answer

Q512) If opening stock 1,000 units material purchase 7,000 units closing stock 500 units material consumed 7,500 What will be the inventory turnover ratio?
Show Answer

Q513) _____ represents that quantity of material which is normally ordered when a particular material reaches the ordering level.
Show Answer

Q514) If EOQ = 360 units, order costs are 5 per order, and carrying costs are Rs 0.20 per units, what is the usage in units?
Show Answer

Q515) Tata Ltd. has incurred cost of Rs 60,000 for material. Further it incurred Rs 35,000 for labor and Rs 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost of product? Show Answer

Q516) The amount of purchase if
Cost of goods sold is Rs 80,700
Opening stock Rs 5,800
Closing stock Rs 6,000 Show Answer

Q517) Average Stock = Rs 12,000. Closing stock is Rs 3,000 more than opening stock. The value of closing stock =
Show Answer

Q518) If the profit is 25% of the cost price then it is
Show Answer

Q519) Goods purchased Rs 1,00,000. Sales Rs 90,000. Margin 20% on cost. Closing Stock =?
Show Answer

Q520) The books of Zee Ltd. revealed the following information:
Opening inventory = 6,00,000.
Purchases during the year 2012-2013 = 34,00,000.
Sales during the year 2012-2013 = 48,00,000.
On March 31, 2013, the value of inventory as per physical stock-taking was Rs 3,25,000. The company's gross profit on sales has remained constant at 25%. What is the estimated cost of missing inventory?
Show Answer

Q521) Amazon Ltd. recorded the following information as on March 31, 2013:
Stock as on April 01, 2012 = 80,000.
Purchases = 1,60,000.
Sales = 2,00,000.
It is noticed that goods worth Rs 30,000 were destroyed due to fire. Against this, the insurance company accepted a claim of Rs 20,000. The company sells goods at cost plus 33 1/3 %. The value of closing inventory, after taking into account the above transactions is,
Show Answer

Q522) M Company, records its inventory under first-in-first-out method, so as to minimize accumulation of outdated stock. The opening stock as on September 01, 2013 is 150 units at the rate of 20 per unit. The purchases and sales made during the month are:
Purchase - 04-09-2013 - 200 units - Rs 25 per unit.
17-09-2013 - 100 units - Rs 22 per unit.
Sales - 03-09-2013-100 units
10-09-2013-150 units.
With effect from September 01, 2013, the company decided to change the method of inventory valuation from the FIFO method to LIFO method. The change in the value of inventory as on September 30, 2013 consequent upon the change in the method of valuation is Show Answer

Q523) The total cost of goods available for sale with a company during the current year is Rs 12,00,000 and the total sales during the period are Rs 13,00,000. If the gross profit margin of the company is 33 1/3% on cost, the closing inventory during the current year is
Show Answer

Q524) Solo Ltd. follows perpetual inventory system. On March 31 of every year, the company undertakes physical stock verification. On March 31, 2013, the value of stock as per the records differed from the value as per the physical stock. On scrutiny, the following differences were noticed: Goods purchased for Rs 10,000 were received and included in the physical stock but no entry was made in the books.
Goods costing Rs 30,000 were sold and entered in the books but the stock is yet to be delivered.
Goods worth Rs 5,000 are returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs 1,50,000, the value of the physical inventory is
Show Answer

Q525) Consider the following data pertaining to a company for the month of March 2013:
Opening stock = 22,000.
Closing stock = 25,000
Purchases less returns = 1,10,000.
Gross profit margin (on sales) = 20%.
The sales of the company during the month are:
Show Answer

Q526) Consider the following data pertaining to Welcome Ltd. for the month of October 2013:
Opening stock = 30,000.
Closing stock = 40,000.
Purchases = 5,60,000.
Returns outward = 15,000.
Returns inward = 20,000.
Carriage inward = 5,000.
If the gross profit is 20% of net sales, the gross sales for the month of October 2013 is

Show Answer

Q527) Consider the following for Queen Co. for the year 2012-13:
Cost of goods available for sale : Rs 1,00,000.
Total sales : Rs 80,000.
Opening stock of goods : Rs 20,000.
Gross profit margin : 25%.
Closing stock of goods for the year 2012-13 was Show Answer

Q528) Compute the value of inventory on April 30 using FIFO method of
inventory costing.
Show Answer

Q529) Using the information given in problem, compute the amount of cost of goods sold for the month of April using FIFO basis.
Show Answer

Q530) Compute net profit or loss for the month of April using FIFO method of inventory costing.
Show Answer

Q531) Compute the value of inventory on April 30 using LIFO method of
inventory costing.
Show Answer

Q532) Using the information given in the problem, compute the amount of cost of goods sold for the month of April using LIFO principle.

Show Answer

Q533) Compute gross profit or loss for the month of April using LIFO method of inventory costing.
Show Answer

Q534) Use the following information to answer this question
A business has the following transaction in January,
2 Jan - Bought 80 units at a total cost of Rs 160.
12 Jan - Bought 50 units at a total cost of Rs 150.
19 Jan - Sold 90 units earning total revenue of Rs 540.
22 Jan - Bought 70 Units at a total cost of Rs 280.
29 Jan - Sold 80 units earning a total revenue of Rs 480.
Using the first in first out method of stock valuation, what is the cost of sales?
Show Answer

Q535) A business has bought and sold identical items of stock during 2012 as follows:
1/6/12 - Bought - 1,000 units @ Rs 10 each.
1/9/12 - Bought - 1,000 units @ Rs 16 each.
5/9/12 - Bought - 1,200 units @ Rs 20 each.
Using the first-in, first-out (FIFO) method what is the value of the 800 units of stock left unsold at 31/12/12?
Show Answer

Q536) Which of the following is an accounting record?
Show Answer

Q537) Which of the following documents is used for issuing materials to production departments ?
Show Answer

Q538) According to which of the following methods of pricing, issues are close to current economic values?
Show Answer

Q539) In which of the following, continuous stock-taking is a part of:
Show Answer

Q540) The classification of items in ABC analysis in made on the basis of
Show Answer

Q541) In which of the following methods, issue of materials are priced at a predetermined rate?
Show Answer

Q542) In which of the following methods, the charge to production is not at actual cost?
Show Answer

Q543) Which of the following stock reaches, the store-keeper should initiate a purchase requisition ?
Show Answer

Q544) Which of the following methods of stock control aims at concentrating efforts on selected items of materials?
Show Answer

Q545) The use of LIFO method is suitable :
Show Answer

Q546) The use of FIFO method is suitable:
Show Answer

Q547) In which of the following methods, material is issued at the latest price Prevailing in the market:
Show Answer

Q548) During the period of rising prices which inventory pricing method tends to fix a higher cost of goods sold:
Show Answer

Q549) Reorder Level is:
Show Answer

Q550) Ordering Cost is also called :
Show Answer

Q551) Which of the following in not included in the holding cost?
Show Answer

Q552) At the point of Economic Order Quantity:
Show Answer

Q553) Under ABC analysis, such items are kept in 'A' Category whose annual
consumption quantity are:
Show Answer

Q554) Under ABC analysis, for control on items of 'A' category is adopted:
Show Answer

Q555) Calculate value of closing stock from the following: Opening stock of finished goods (500 units): Rs 2,000
Cost of production (10000 units): Rs 50,000 Closing stock (1000 units):? Show Answer

Q556) Which of these is not a Material control technique:
Show Answer

Q557) Out of the following, what is not the work of purchase department:
Show Answer

Q558) Bin Card is a Show Answer

Q559) Stores Ledger is a:

Show Answer

Q560) Re-order level is calculated as:
Show Answer

Q561) Economic order quantity is that quantity at which cost of ordering inventory is:
Show Answer

Q562) ABC analysis is an inventory control technique in which:
Show Answer

Q563) Calculate EOQ (approx.) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs 10 per order
Purchase price: Rs 100 per unit
Carrying cost: 5% Show Answer

Q564) Calculate the value of closing stock from the following according to FIFO method:
1st January, 2014: Opening balance: 50 units @ Rs 4 Receipts:
5th January, 2014: 100 units @ Rs 5
12th January, 2014: 200 units @ Rs 4.50
Issues:
2nd January, 2014: 30 units 1
8th January, 2014: 150 units Show Answer

Q565) Calculate the value of closing stock from the following according to LIFO method:
1st January, 2014: Opening balance: 50 units @ Rs 4
Receipts:
5th January, 2014: 100 units @ Rs 5
12th January, 2014: 200 units @ Rs 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units
Show Answer

Q566) Calculate re-order level from the following:
Safety stock: 1000 units
Consumption per week: 500 units
It takes 12 weeks to reach material from the date of ordering. Show Answer

Q567) From the following information, calculate the extra cost of material by following EOQ:
Annual consumption = 45000 units.
Ordering cost per order = Rs 10.
Carrying cost per unit per annum = Rs 10.
Purchase price per unit = Rs 50.
Re-order quantity at present = 45000 units.
There is discount of 10% per unit in case of purchase of 45000 units in bulk. Show Answer

Q568) After inviting tenders for supply of raw materials, two quotations are received as follows-
Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same-
Show Answer

Q569) A firm requires 16,000 units of a certain component which it buys at Rs 60 each. The cost of placing an order and following it up is Rs 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 _______ at a time.
Show Answer

Q570) A company manufactures several components in batches. The following data relates to one component:
Annual demand: 32,000 units;
Set-up cost per batch: Rs 20.
Annual rate of interest: 12%;
Cost of production per unit: Rs 16
The Economic Batch Quantity is
Show Answer

Q571) G Ltd. produces a product, which has a monthly demand of 4,000 units. The product requires a component X, which is purchased at Rs 20. For every finished product, one unit of component is required. The ordering cost is Rs 120 per order and the holding cost is 10% p.a. At EOQ level purchase.
Ordering Cost + Carrying Cost = ? Show Answer

Q572) Monthly demand (units) = 250.
Cost of placing an order (Rs ) = 100.
Annual carrying cost ( Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Re-order quantity = ?

Show Answer

Q573) Monthly demand (units) = 250.
Cost of placing an order (Rs ) = 100.
Annual carrying cost ( Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Re-order level = ?

Show Answer

Q574) Monthly demand (units) = 250.
Cost of placing an order (Rs) = 100.
Annual carrying cost ( Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Minimum level = ?

Show Answer

Q575) Monthly demand (units) = 250.
Cost of placing an order (Rs) = 100.
Annual carrying cost (Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Maximum Level = ?

Show Answer

Q576) Monthly demand (units) = 250.
Cost of placing an order (Rs) = 100.
Annual carrying cost ( Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Average stock level = ?


Show Answer

Q577) Monthly demand (units) = 250.
Cost of placing an order (Rs) = 100.
Annual carrying cost (Rs per unit) = 15.
Normal usage (units per week) = 50.
Minimum usage (units per week) = 25.
Maximum usage (units per week) = 75.
Re-order period (weeks) = 4-6.
Minimum Level = 3,000 units, EOQ = 2,000 units. Average Level = ?
Show Answer

Q578) EOQ = 100 units, Annual consumption = 2,000 units, Carrying cost per unit per annum = Rs 480, Ordering cost = ? Show Answer

Q579) Reorder Level = Safety Stock + _____ .
Show Answer

Q580) Bin Card is a ____ Show Answer

Q581) A manufacturer requires 9,600 units of a certain component annually. This is currently purchased from a regular supplier at 50 per unit. The cost of placing an order is 60 per order and the annual carrying cost is 5 Per price. Annual ordering plus carrying cost =?
Show Answer

Q582) In cost accounts stock are valued at ____ Show Answer

Q583) In FIFO Method closing inventory is valued at ___ Show Answer

Q584) Which of the following statement is correct in relation to "Need for proper inventory control"?
Show Answer

Q585) When materials are delivered, a supplier's carrier will usually provide a document called ___ to confirm the details of delivery.
Show Answer

Q586) ____ records the quantity details, rates and values of stock movements.
Show Answer

Q587) G Ltd. Produces a product, which has a monthly demand of 4,000 units. The product requires a component X, which is purchased at Rs 20. For every finished product, one unit of component is required. The ordering cost is Rs 120 per order and the holding cost is 10% p.a At EOQ level purchase, Ordering Cost + Carrying Cost =? Show Answer

Q588) Rowan premium plan is an improvement over- Show Answer

Q589) The rate of change of labour force in an organization during a specified period is called - Show Answer

Q590) A worker who does not work in the factory premises, but works from his home or at site of the factory is called - Show Answer

Q591) The following information is available:
Wages for January = Rs 20,000.
Wages for February = Rs 22,000
Delay in payment of wages: 1/2 month
The amount of wages paid during the month of February is -
Show Answer

Q592) In which bonus plan, the percentage of bonus to the wages earned is that, which the time saved bears to the standard time Show Answer

Q593) Which of the following is not a method used for time booking -
Show Answer

Q594) The cost accountant of Akash Ltd. has computed labour turnover rates for the quarter ended 31st March, 2014 as 20%, 10% and 6% respectively under 'flux method', 'replacement method' and 'separation method'. If the number of workers replaced during that quarter is 80, find the number of workers who left and discharged- Show Answer

Q595) In a factory where piece work system is followed with guaranteed minimum wages of Rs 120 for eight hours, incentive payments are made according to Rowan bonus scheme. The standard time per unit is 10 minutes. If in a five day week of 40 working hours the actual production is 300 units, what will be the total earnings of the worker-
Show Answer

Q596) For a given job, standard time allowed is 6 hours and actual time taken by a worker is 8 hours. Rate per hour is Rs 10. The wages under Barth premium system is - Show Answer

Q597) Which of the following is a method of indirect monetary incentive scheme-
Show Answer

Q598) No. of workers on the payroll:
At the beginning of the month = 600
At the end of the month = 700
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving while the rest were engaged for an expansion scheme. The labour turnover rate according to replacement method will be - Show Answer

Q599) If efficiency of a worker is above 100% then as per Merrick's differential piece rate system the worker will get -
Show Answer

Q600) Normal idle time is - Show Answer

Q601) Actual production during a month by worker-'X' is 1,000 units. If standard production per month per worker is 1,000 units and piece work rate is Rs 5 per unit, the total monthly remuneration of worker 'X' under the Gantt's Task and Bonus Scheme will be - Show Answer

Q602) What will be the treatment of overtime premium in cost accounting, if it is due to circumstances beyond control -
Show Answer

Q603) Which of the following formula is used to calculate wage payment under Barth's scheme - Show Answer

Q604) Which of the following is not an objective of time-booking-

Show Answer

Q605) A worker is allowed 2 hours to produce 5 units of a product. Wages are paid to the worker @ Rs 20 per hour. In a 48 hours week, the worker produced 150 units. The earnings of the worker as per Rowan plan will be - Show Answer

Q606) The rate of change of labour force in an organisation during
a specified period is called- Show Answer

Q607) Two workmen 'X' and 'Y' produce the same product using the same material. 'X' is paid bonus according to Halsey plan, while 'Y' is paid bonus according to Rowan plan. The time allowed to manufacture the product is 100 hours. 'X' takes 60 hours and 'Y' takes 80 hours to complete the product. The normal hourly rate of wages of workman 'X' is Rs 24 per hour. The total earnings of both the workmen are same. The normal hourly rate of wages of workman 'Y' will be - Show Answer

Q608) Wage rate = Rs 1.50 per hour.
Time allowed for job = 20 hours
Time taken = 15 hours.
The total earnings of the worker under Halsey plan is
Show Answer

Q609) A worker completes a job in certain number of hours. The standard time allowed for the job is 10 hours and the hourly rate of wages is Rs 1. The worker earns a bonus of Rs 2 at 50% rate under Halsey plan. His total wages under the Rowan Premium plan is - Show Answer

Q610) Job analysis is the analysis of each job to determine a list of ______ needed by workers to perform the work satisfactorily.
Show Answer

Q611) A firm plans to produce 1,980 units of a product per 8 hour shift. The standard productivity is 2 units per man hour. Average labour efficiency is 91%, idle time is 15% of attendance time and absenteeism is 20%. How many workers should be recruited to produce planned output: Show Answer

Q612) Which of the following is/are not a purpose of time keeping:
(i) Ascertaining labour cost of a job/product/ activity
(ii) Evaluating labour performance by comparing actual and budgeted time
(iii) Providing internal check against dummy workers.
Select the correct answer from the options given below: Show Answer

Q613) Under Merrick's multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance lies between _____ of the standard output. Show Answer

Q614) Standard time allowed for a job is 20 hours @ Rs 2 per hour. Actual time taken by a worker is 15 hours. The earning and effective wage rate under Halsey Plan (50 % sharing) will be: Show Answer

Q615) Standard time for a job is 40 hours @2 per hour. Actual time taken by a worker is 30 hours. His total earnings under Rowan plan and Halsey plan will be:
Show Answer

Q616) In a factory, the standard output in 8 hours is 220 units. A worker actually produces 242 units in the standard time. Wage rate is Rs 8 per hour.
The total wages paid to the worker under Emerson's plan will be Show Answer

Q617) Which of the following is not replacement cost of labour turnover:
(1) Cost of recruitment/selection
(2) Cost of providing medical services
(3) Cost of training
(4) Retirement benefits
(5) Decline in quality
Select the answer from the options given below: Show Answer

Q618) Statement -1
Low time wages do not necessarily mean low cost of production and high wages mean high cost of product.
Statement - II
Time and motion study, which is a function of engineering department, is useless for the determination of wages.
Select the correct answer from the options given below: Show Answer

Q619) Standard output per day per worker is 40 units. Incentive bonus for efficiency above 80% is Rs 50 for every 1% increase up to 90% and above this Rs 80 for every 1% increase. Kapil worked for 25 days and produced 910 units.
The amount of incentive paid to him will be: Show Answer

Q620) Relevant data regarding number of workers on roll is given below for June, 2016:
At the beginning of the month = 750.
At the end of the month = 850.
During June, 2016, 10 workers, left, 30 workers were discharged and 100 workers were recruited. Of these, 15 workers were recruited in the vacancies of those leaving, while the rest were engaged for an expansion scheme.
The labour turnover rate according to flux method for June, 2016-
Show Answer

Q621) Rowan premium plan is an improvement over:
Show Answer

Q622) _____ is defined as the rate of exchange of labour force in an establishment during a particular period.
Show Answer

Q623) Overtime wages arising out of abnormal conditions, eg. flood, strike etc. should not be charged to _____ Show Answer

Q624) When standard output is 10 units per hour and actual output is 14 units per hour, the efficiency level will be: Show Answer

Q625) Given that Standard Time for a job is 10 hours, actual time taken is 6 hours and the rate of wages is Rs 3 per hour. The total wages under Halsey scheme will be: Show Answer

Q626) Which of the following incentive methods of wage payment shall be used for indirect workers? Show Answer

Q627) Piece rate system of wage payment is more suitable in which of the following circumstances? Show Answer

Q628) When the time saved by a worker while doing a work is less than 50% of the standard time fixed for the work then from worker's earnings point of view:
Show Answer

Q629) ______ group bonus plan, in addition to eligible wages, half of the savings in labour cost is paid to workers and supervisors as bonus. Show Answer

Q630) Assertion (A): Excessive labour turnover is not advantageous to organizations.
Reason (R): Labour turnover allows injection of fresh blood into the organizations. Show Answer

Q631) Under Halsey-Weir plan, the time allowed for a job is 49 hours and time taken by a workers is 40 hours. The rate of wages per hour is Rs 30. The earnings of the worker is:
Show Answer

Q632) For a period of 10 hours, standard output fixed as 260 units and actual output achieved by a worker is 299 units. If so, the rate of bonus under Emerson Efficiency plan is:
Show Answer

Q633) During the third week of March, Mr. R. produced 420 units. The standard time allowed to produce one unit is 10 minutes. If he received wages for a guaranteed 48 hours per week at the rate of Rs 5 per hour and bonus according to Hasley Plan, the total earning was: Show Answer

Q634) Wages and salaries paid to _____ are indirect labour costs. Show Answer

Q635) A job requires 2,400 actual labour hours for completion and it is anticipated that there will be 20% idle time. If the wage rate is Rs 10 per hour, what is the budgeted labour cost for the job? Show Answer

Q636) _____ is a method of recording details of time with reference to the jobs or work orders undertaken by the workers. Show Answer

Q637) If the overtime arises for completing a job within a specified time as requested by the customer, then the entire amount of overtime including overtime premium should be charged: Show Answer

Q638) Which of the following is/are purpose(s) of "Time Recording"? Show Answer

Q639) Recording of workers' time spent on different jobs or processes for determining labour cost of jobs/processes is called:
Show Answer

Q640) Which of the following is the purpose of 'Time Recording"
Show Answer

Q641) Worker is paid Rs 0.50 per unit and he produces 18 units in 7 hours Keeping in view the piece rate system, the total wages of the work would be:
Show Answer

Q642) Which of the following best describe piece rate system?
Show Answer

Q643) Which of the following is a reason for the overtime to be incurred? Show Answer

Q644) Gross pay ÷ _______ = Effective wage rate Show Answer

Q645) Which of the following is a direct labour cost?
Show Answer

Q646) A disadvantage of an hourly wage plan is that it:
Show Answer

Q647) If B Limited shows required production of 120 cases of product for the month, direct labour per case is 3 hours at Rs 12 per hour. Budgeted labour costs for the month should be: Show Answer

Q648) Direct labour is an element of:
Show Answer

Q649) Taylor's Differential Piece Rate plan based on _____ piece rates is fixed.
Show Answer

Q650) Merrick Differential Piece Rate plan based on _______ piece rate is fixed.
Show Answer

Q651) The salary of factory clerk is treated as:
Show Answer

Q652) The flux method of labour turnover denotes:


Show Answer

Q653) All of the following are cases of labour turnover except:
Show Answer

Q654) If, basic salary Rs 10,000, Per Piece Commission Rs 5 unit sold 700 pieces. What will be total salary? Show Answer

Q655) Payroll includes:
Show Answer

Q656) When overtime is required for meeting urgent orders, overtime should be: Show Answer

Q657) Labour turnover is measured by:
Show Answer

Q658) Wages sheet is prepared by:
Show Answer

Q659) Cost of idle time arising due to non-availability of raw materials is:
Show Answer

Q660) Methods of measures to labour turnover are: Show Answer

Q661) Cost of abnormal idle time is transferred to:
Show Answer

Q662) Which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance? Show Answer

Q663) Under Gantt's Bonus Plan, no bonus is payable to a worker if his efficiency is less than: Show Answer

Q664) Under Emerson's Efficiency System, no bonus is payable when efficiency is up to:
Show Answer

Q665) When time saved is more than 50% of the standard time, Halsey plan allows:
Show Answer

Q666) Wages under Rowan and Halsey plans are exactly equal when time saved is:
Show Answer

Q667) Halsey Premium Plan was invented by F.A. Halsey, an American
Engineer:

Show Answer

Q668) Rowan Premium Plan is an improvement over:
Show Answer

Q669) Rowan Premium was executed by James Rowan in:
Show Answer

Q670) Taylor's Differential Piece Rate Plan was developed by:
Show Answer

Q671) Gantt Bonus Plan is the mixed form of:
Show Answer

Q672) Wage sheet is prepared by ________ Department.
Show Answer

Q673) The cost of abnormal idle time is charged to ____.
Show Answer

Q674) The workers who are sent to sites or customers premises for performing work are known as ________.
Show Answer

Q675) Idle time arises only when workers are paid on ______ basis.
Show Answer

Q676) Time not spent on productive work is known as
Show Answer

Q677) Time recording clock prints the time on ____.
Show Answer

Q678) High rate of labour turnover can be controlled by ____ and ____.
Show Answer

Q679) The rate of change in the labour force of an organisation is called ______.
Show Answer

Q680) The cost of normal idle time is charged to _____.
Show Answer

Q681) When overtime is required for meeting urgent orders, overtime premium should be charged to ______.
Show Answer

Q682) Salaries paid to time office clerks are an example of ______ labour cost.
Show Answer

Q683) In Taylor's differential piece rate system ______
piece rates are set for
each job.
Show Answer

Q684) In Halsey Bonus Plan, a worker gets a bonus equal to _____ of the time saved.
Show Answer

Q685) In Emerson's Efficiency System, no bonus is payable to workers unless efficiency is ________ percent.
Show Answer

Q686) Merrick Plan is an ______ from over Taylor Plan.
Show Answer

Q687) Taylor's Differential Piece Rate Method pays higher rate to _____ workers. Show Answer

Q688) ______ System is more suitable where quality of work is of primary importance.
Show Answer

Q689) Under piece rate system, payment is made according to the
Show Answer

Q690) When time saved is less than _____ percent of the standard time, Rowan plan allows more wages to workers than Halsey plan.
Show Answer

Q691) Which of the following is an abnormal cause of Idle time:
Show Answer

Q692) If overtime is resorted to at the desire of the customer, then the overtime premium:
Show Answer

Q693) Labour turnover means:
Show Answer

Q694) Which of the following is not an avoidable cause of labour turnover:

Show Answer

Q695) Costs associated with the labour turnover can be categorised into: Show Answer

Q696) Calculate workers left and discharged from the following:
Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. Show Answer

Q697) Calculate workers recruited and joined from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. Show Answer

Q698) Calculate the labour turnover rate according to replacement method from the following:
No. of workers on the payroll:
- At the beginning of the month: 500
- At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme.
Show Answer

Q699) Calculate the labour turnover rate according to Separation method from the following:
No. of workers on the payroll:
- At the beginning of the month: 500
- At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme. Show Answer

Q700) A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour. Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour. For the same saving in time, how much he will get under the Halsey Plan? Show Answer

Q701) During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced?
Show Answer

Q702) Job specification is
Show Answer

Q703) Standard time allowed = 10 hours, Actual time taken = 12 hours, Rate per hour = Rs 8. Effective earning per hour under Barth Plan = ? Show Answer

Q704) While calculating "Raw Material Consumed" opening stock of raw
material is ________
Show Answer

Q705) A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour?
Show Answer

Q706) Labour turnover means: _____ Show Answer

Q707) Which of the following is method of job evaluation?

Show Answer

Q708) In "Time Rate System" of wage payment wage rate can be fixed on ....
Show Answer

Q709) In relation to labour cost "Expenses incurred on canteen, creches, sports club, etc." will be classified as
Show Answer

Q710) Workers being paid a rate in excess of their wage rate for working additional hours are paid: Show Answer

Q711) Which of the following formula is used to calculate Re-order Level? Show Answer

Q712) Under Halsey Plan:
Show Answer

Q713) A worker is allowed 60 hours to complete the job on a guaranteed wages of Rs 10 per hour. Under the Rowan Plan, he gets an hourly wages of Rs 12 per hour. For the same saving in time, how much he will get under the Halsey Plan per hour? Show Answer

Q714) Direct labour cost is....... in nature.
Show Answer

Q715) Indirect direct labour cost is generally _______ in nature.
Show Answer

Q716) In which of the following method of time keeping an attendance register is kept in the time office at factory gate or in each department for workers employed therein? Show Answer

Q717) Abnormal idle time cost is _____ . Show Answer

Q718) When the amount of overheads absorbed is less than the amount of overheads incurred, it is called - Show Answer

Q719) Over-absorption of factory overheads due to inefficiency of management should be disposed by-
Show Answer

Q720) The budgeted fixed overheads amounted to Rs 84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an -
Show Answer

Q721) Which of the following method is not used to account for the under-absorption and over-absorption of overheads - Show Answer

Q722) The rate used in addition to the original rate of ascertaining
the profit for adjusting the under or over absorption is known as-
Show Answer

Q723) Computation of overheads absorption rate should be based on- Show Answer

Q724) Expenditure on labour and materials that cannot be economically identified with a specific saleable cost unit is known as- Show Answer

Q725) Which of the following is a method of segregating semi- variable costs into fixed and variable costs-
Show Answer

Q726) The costing method in which fixed factory overheads are added to inventory is known as-
Show Answer

Q727) Rent, rates and taxes paid for the building are apportioned on the basis of-
Show Answer

Q728) What is the machine hour rate on the basis of following information-
Cost of machine: Rs 18,000
Cost of installation: Rs 2,000
Scrap value after 10 years: Rs 2,000
Insurance premium for the machine: Rs 120 per annum
Estimated repair: Rs 200 per annum
Power consumed : 2 units per hour
@ Rs 150 per 100 units.
Estimated working hours : 2,000 per annum Show Answer

Q729) Which of the following formula is used to calculate the overheads to be absorbed- Show Answer

Q730) If the actual expenses fall short of the amount absorbed, it is known as-
Show Answer

Q731) Which of the following is not a method of segregating semi- variable costs into fixed and variable costs -
Show Answer

Q732) The following data is available for Akhil Ltd. for the year ended 31st March 2015:
Administrative overheads = Rs 2,50,000.
Production overheads = Rs 2,74,200.
Factory cost = Rs 3,42,800.
Work-in-progress = Rs 74,000.
Machine hour = 4,000 hours.
The absorption rate for production overheads is -
Show Answer

Q733) The budgeted fixed overheads amounted to Rs 75,000. The budgeted and actual production amounted to 15,000 units and 20,000 units respectively. This means that there will be an -
Show Answer

Q734) Which of the following methods is used to account for the under-absorption and over-absorption of overheads -
Show Answer

Q735) The following data relates to two activity levels of production:
No. of units : Level I 4,000 , Level II 5,500.
Overheads (Rs) : Level I 2,80,000 , Level II 3,50,000.
Variable cost per unit would be - Show Answer

Q736) A product whose direct material costs and direct labour costs are Rs 200 and Rs 100 would consume 3 hours, 4 hours and 5 hours in department A, B and C respectively. Overheads absorption rate is -A: Rs 4.5 per hour, B: Rs 5 per hour and C: Rs 10.5 per hour. The total cost of the 'product is - Show Answer

Q737) Given below are the costing records of a factory:
Cost of machine = Rs 1,00,000.
Scrap value = Rs 5,000.
Freight and installation charges = Rs 5,000.
Repairs and maintenance cost = Rs 1,000 per month.
Wages of operator = Rs 5,000 per month.
Estimated life = 10 years.
Factory operates 2,000 hours per year.
Power: 10 units per hour @ 50 paise per unit.
The machine hour rate will be - Show Answer

Q738) When allocating service department costs to production departments, which one of the following is not a method of redistribution- Show Answer

Q739) Assertion (A):
Overheads are recovered in costing based on predetermined rates. Reason (R):
This solves the problem of treatment of under recovery or over recovery of overheads.
Select the correct answer from the options given below - Show Answer

Q740) Item(s) excluded from cost sheet are -
Show Answer

Q741) The basis of apportionment of overheads which takes into account the profitability of various department is called -
Show Answer

Q742) The following particulars relate to production department of a factory:
Material used = Rs 20,000.
Direct labour = Rs 10,000.
Overheads = Rs 7,500.
On an order carried out in the department, material consumed was Rs 4,000 and direct wages paid amounted to Rs 2,000.
The amount of overheads chargeable to this order on the basis of prime cost would be - Show Answer

Q743) You are given the following information:
(i) Total number of workers working in a department: 500
(ii) Working days in a year: 300
(iii) Number of hours worked in a day: 8
(iv) Total departmental overheads: Rs 68,400
(v) Idle time @ 5% of days hours to be deducted from total number of days hours.
Direct labour hour rate will be -
Show Answer

Q744) Which method of absorption of factory overheads would you suggest in a concern which produces only one uniform item of product - Show Answer

Q745) Statement- I:
Departmentalisation of items of costs is known as primary distribution.
Statement- II:
Redistribution of service department's costs is known as secondary distribution.
Choose the correct option -
Show Answer

Q746) Which one of the following is not a part of reciprocal method for re-distribution of service departments' overheads to production departments:
Show Answer

Q747) Total number of workers : 100,
Idle time : 5%,
Working days per year : 300.
Factory overheads : Rs 11,400.
No. of hours worked per day : 8.
Direct labour hour rate will be: Show Answer

Q748) Classify the following expenses as direct (D) and indirect (I):
(i) Royalties charged as a rate per unit
(ii) Cost of making a design, pattern for a specific job
(iii) Salesman's commission
(iv) Power, fuel, lighting of factory and office.
Select the correct answer using the codes given below:
Show Answer

Q749) Calculate machine hour rate from the following:
Cost of machine : Rs 19,200.
Estimated scrap value : Rs 1,200.
Average repair and maintenance charges per month : Rs 150.
Standing charges allocated to machine per month : Rs 50.
Effective working life of machine : 10,000 hours.
Running time per month : 166 hours.
Power used by machine 5 units per hour @ : 19 paise per unit.
Choose the correct option -
Show Answer

Q750) Administrative overheads are absorbs on the basis of -
Show Answer

Q751) Following information relates to the production department of a factory:
Materials used : Rs 80,000.
Direct labour : Rs 60,000.
Overheads : Rs 40,000.
On an order carried out in the department, materials consumed amounted to Rs 16,000. The overheads chargeable to this order on the basis of direct materials will be: Show Answer

Q752) When the amount of overheads absorbed is less than the amount of overheads incurred, it is called:
Show Answer

Q753) A common absorption rate used throughout a factory for all jobs and units of output irrespective of the department in which they were produced is called: Show Answer

Q754) Statement-l
Production departments and service departments are equally important for manufacturing industry.
Statement-II
To calculate cost of a product service department cost should be redistributed among production department on a reasonable basis. Select the correct answer from the options given below: Show Answer

Q755) Which of the following is not a method of overhead absorption -
Show Answer

Q756) Following information has been collected from cost records of Bright Ltd:
Direct material: Rs 5,00,000.
Direct labour: Rs 3,00,000.
Factory overheads : 20% of factory cost.
The amount of factory overheads will be -
Show Answer

Q757) Over-absorption of factory overheads due to inefficiency of management should be disposed by:
Show Answer

Q758) The following information relates to the production department of a factory:
Materials used = Rs 30,000.
Direct labour = Rs 20,000.
Overheads = Rs 5,000.
On an order carried out in the department, direct wages amounted to Rs 3,000. Find out the overheads chargeable to this order on the basis of direct wages: Show Answer

Q759) Salary of a foreman should be classified as a: Show Answer

Q760) The costing method in which fixed factory overheads are added to the inventory is:
Show Answer

Q761) The primary documents used for collection of production overheads are:
Show Answer

Q762) Which of the following costs is not a factory overhead expense?
Show Answer

Q763) A method of dealing with overheads involves spreading common costs over cost centres on the basis of benefit received. This is known as:
Show Answer

Q764) Which of the following is not a means whereby factory overheads can be charged out of production?
Show Answer

Q765) An organisation is divided into number of departments and overheads are collected, allocated or apportioned to respective departments, is called:
Show Answer

Q766) A manufacturer produces 2,00,000 units of a product at a cost of Rs 3.25 per unit. Later on he produces 2,75,000 units at a cost of Rs 3.20 per unit, when its fixed overheads have increased by 10%. The original fixed overheads will be: Show Answer

Q767) Maximum possible production capacity of a plant when operating time is fully utilised is its:
Show Answer

Q768) To produce 1,000 units of a product JK Ltd., spend Rs 50,000 on direct material and Rs 40,000 on direct labour. Factory overhead was charged at the rate of 10% on prime cost amounted to Rs 12,000. The amount of direct expenses was: Show Answer

Q769) The criteria used for secondary distribution of overheads which is considered as inequitable is:
Show Answer

Q770) Overhead expenses of stores keeping department often
apportioned on the basis of:
Show Answer

Q771) The amount of under/over absorbed overhead at the end of the year is carried forward to next year for adjustment when:
Show Answer

Q772) In a manufacturing concern there are three production departments namely A, B and C. Their direct wages for a period are respectively 75,000, 20,000 and 30,000. During the same period the overheads of the departments are 60,000, 30,000 and 15,000 respectively. For this concern, the Blanket Overhead Rate shall be: Show Answer

Q773) The most logical basis for absorption of selling and distribution overheads is:

Show Answer

Q774) In traditional absorption costing, costs are first traced to: Show Answer

Q775) In which of the following method "Line of the best fix" is drawn to find out "variable overheads" and "fixed overheads" out of "semi- variable" Overheads?
Show Answer

Q776) Under or over absorption of overheads due to abnormal factors is:
Show Answer

Q777) Percentage of direct material cost method of overhead absorption is suitable:
Show Answer

Q778) Compute the machine hour rate from the following information:
Cost of a machine = Rs 9,50,000.
Cost of installation = Rs 50,000.
Scrap value of the machine after 10 years = Rs 1,00,000.
Estimated Repairs = Rs 5,000 per annum.
Power consumed 2 units per hour @ = Rs 1.5 per unit.
Estimated working hours 10,000 per annum

Show Answer

Q779) Assertion (A):
Overheads are recovered in costing based on predetermined rates.
Reason (R):
This solves the problem of treatment of under-recovery or over recovery of over-heads.
Select the correct answer from the options given below: Show Answer

Q780) Which of the following is not a method of cost absorption? Show Answer

Q781) Most suitable basis for apportioning insurance charges of machines would be:
Show Answer

Q782) Which of the following is not indirect costs? Show Answer

Q783) Actual overheads for the year ending 31st March, 2017 were Rs 21,000, whereas the overhead absorbed shows an over absorption of Rs 1,000 for the same period. If the direct labour cost is Rs 1,00,000, then overhead absorption rate based on direct wages would be:
Show Answer

Q784) Which of the following method is not used for segregating semi-variable costs into fixed and variable costs?
Show Answer

Q785) According to Behavioral Analysis, the overheads may be classified as:
Show Answer

Q786) Production 11,000 units @ 11.50 per unit, Closing Stock of finished Goods 3,000 units. Opening Stock 2,000 units @ Rs 14 per unit, Selling and Distribution Expenses 20% of Cost of Sales, Profit @ 25% on Sales.
Calculate Profit per unit: Show Answer

Q787) Sales Management is more concerned with:
Show Answer

Q788) A management consultancy recovers overheads on chargeable consulting hours. Budget overheads were Rs 6,15,000 and actual consulting hours were Rs 32,150. Overhead were under recovered by Rs 35,000. If actual overhead were Rs 6,94,075, what was the budgeted overhead absorption rate per hour. Show Answer

Q789) Paras Ltd has been using an overhead cost rate of 5.60 per machine hour. During the year, overheads of 2,75,000 were incurred and 48,000 machine hours worked. Therefore, overheads were: Show Answer

Q790) Production overheads are absorbed into production units by the use of overhead cost rates. Which of the following best describes how the overhead cost rate is calculated?
Show Answer

Q791) If there has been an over recovery of overheads at the end of an accounting period, the amount concerned should be:

Show Answer

Q792) Which of the following types of cost would not form part of the prime cost of a product?

Show Answer

Q793) For week 1, the budgeted labour hours for normal activity are 5,000 hours. The budgeted fixed cost is Rs 15,000. The fixed overhead cost rate is calculated on the basis of budgeted cost and budgeted normal activity. At the end of the week, it is found that only 4,000 hours were worked in practice. What is the amount of fixed overhead applied to jobs in week 1? Show Answer

Q794) Which of the following are conditions to be met in determining a suitable overhead cost rate?
(i) Fair to all parties involved in the allocation process.
(ii) Representative of the benefit each party gains from the shared cost. (iii) The most accurate, regardless of the time taken to provide the information.
Show Answer

Q795) The accounts department investigates all applications from new customers for credit sales. It has incurred a cost of 2,500 in January to investigate 100 customer applications. The accounts department has apportioned the cost as 1,250 each to division A and B because each has the same level of sales. The manger of division A has claimed that this is unfair because she only asked for 20 investigations while division B asked for 80 investigations.
Which of the following statements is correct?
(i) Activity based costing would charge 500 to division A and 2,000 to division B.
(ii) Activity based costing forecasts that the customer investigation costs for February will be 500 for division A and 2,000 for division B. (iii) Activity based costing makes managers more aware of the cost incurred by their operations. Show Answer

Q796) For week 1, the budgeted labour hours for normal activity are 4,000 hours. The budgeted fixed cost is Rs 16,000. The fixed overhead cost rate is calculated on the basis of budgeted cost and budgeted normal activity. At the end of the week it is found that 4,200 hours were worked in practice. What is the amount of fixed overhead applied to jobs in Week 1? Show Answer

Q797) An organization has 3 cost centres. Production overheads are absorbed into production units by the use of overhead cost rates. Which of the following best describes how the overhead cost rate should be calculated?
Show Answer

Q798) PQR Ltd. has the following data relating to its assembly plant for the year to 31st, March:
Material costs : Rs 8,00,000.
Direct labour costs : Rs 3,00,000.
Assembly plant indirect costs of production : Rs 1,00,000.
The staff of the assembly department take up 60% of the services of the staff canteen. The staff canteen has total costs of Rs 200,000. There were 50,000 labour hours worked in the assembly plant. What was the overhead cost of the assembly department per direct labour hour? Show Answer

Q799) If there has been an under-recovery of overheads at the end of an accounting period, the amount concerned should be:
Show Answer

Q800) Which of the following is the best description of cost drivers?
Show Answer

Q801) Rahul Ltd has been using an overhead cost rate of Rs 6.40 per machine hour. During the year, overheads of Rs 2,00,000 were incurred and 30,000 machine hours worked. Which of the following statement is correct? Show Answer

Q802) The allotment of whole items of cost to cost centres or cost unit is called: Show Answer

Q803) Packing Cost is a:
Show Answer

Q804) Director's remuneration and expenses form a part of:
Show Answer

Q805) Administration overheads are recovered as a percentage of:
Show Answer

Q806) Which of the following is a scientific and accurate method of absorption of factory overheads:
Show Answer

Q807) Selling and distribution overheads are absorbed on the basis of: Show Answer

Q808) If raw material used is Rs 8,000 and direct labour cost is Rs 6,000 on a work order carried out, the factory overheads absorbed @ 15% on Prime Cost will be: Show Answer

Q809) If total factory overheads for the month of November were Rs 50,000 and during that period 100 workers worked for 25 days at 8 hours per day, then overhead absorption rate per direct labour hour will be: Show Answer

Q810) If machine hours worked were 5,000, factory overhead absorption rate per machine hour was Rs 3 and under absorption of overheads is Rs 400 then actually incurred factory overheads will be: Show Answer

Q811) The actual incurred works overheads are Rs 10,500 and absorbed overheads shows an over absorption of Rs 500. If direct labour cost is Rs 50,000, then overhead absorption rate based on direct wages will be: Show Answer

Q812) Machine hour rate method is the method of absorption of: Show Answer

Q813) Under machine hour rate method a machine is treated as:
Show Answer

Q814) In ascertainment of machine hour rate, labour welfare expenses is apportioned:
Show Answer

Q815) In ascertainment of machine hour rate, rent, rates and taxes is apportioned:

Show Answer

Q816) Overhead is classified according to variability-wise into fixed, variable and _______.
Show Answer

Q817) The aggregate of indirect material cost, indirect wages and ________ is
overhead.
Show Answer

Q818) With the change in quantum of production ________ cost remains the same per unit.
Show Answer

Q819) Increase in total variable cost is due to _______ in production.
Show Answer

Q820) Directors remuneration and expenses is a part of ______ overhead.
Show Answer

Q821) The difference between actual and recovered factory overheads is called _____.
Show Answer

Q822) The technical term for charging of overheads to cost units is known as ________.
Show Answer

Q823) Allotment of overheads to cost units is known as ______.
Show Answer

Q824) The process of grouping costs according to their common characteristics
is known as _______. Show Answer

Q825) Overhead refers to:
Show Answer

Q826) Which of the following is not a method of cost absorption?
Show Answer

Q827) Blanket overhead rate is: Show Answer

Q828) In element-wise classification of overheads, which one of the following is not included -
Show Answer

Q829) A company's service centre costs totaled 95,000, and are reapportioned to three production departments (A, B and C) in the ratio 33:25:17 respectively. What is the total amount (to the nearest pound) apportioned to departments c? Show Answer

Q830) _____ refers to the distribution of overheads cost among various cost centers on an equitable basis.
Show Answer

Q831) The monthly budget of a department is as under:
Direct material = Rs 45,000.
Direct wages = Rs 60,000.
Overheads = Rs 90,000.
Direct labour hours = Rs 15,000.
Machine hours = Rs 30,000.
Find out the overhead recovery rate based on machine hours. Show Answer

Q832) In case of under absorption of overheads
Show Answer

Q833) Profit as per cost account Rs 3,330
Under-valuation of opening stock in cost accounts Rs 17,750
Under valuation of closing stock in financial accounts Rs 8,250 Profit/Loss as per financial account =? Show Answer

Q834) Which of the following is not used as a base for apportionment of administration overheads?
Show Answer

Q835) Under or over-absorption due to abnormal factors___ Show Answer

Q836) ______ refers to the use of one single or general overhead rate for the whole factory.
Show Answer

Q837) Loss as per cost accounts is Rs 1,72,400. A comparison cost and financial accounts revealed the following:
- Works overhead under recovered Rs 3,120
- Interest received not included in costing = ?
Loss as per financial accounts = Rs 1,67,520.
Show Answer

Q838) Which of the following accounting treatment is correct in relation to "Spoilage"? Show Answer

Q839) Which of the following is property of "Normal Waste"? Show Answer

Q840) Which of the following base can be adopted for calculation of absorption of administrative overhead rate? Show Answer

Q841) ___ should be a principle for an ideal wage payment system.
Show Answer

Q842) Which of the following is not a group bonus plan?
Show Answer

Q843) The cost accountant of Zed Ltd. has computed the following labour turnover rates for the quarter ended 31st March, 2017:
Under Flux Method = 15%.
Under Replacement Method=10%
Under Separation Method=6%.
If the number of workers replaced during the quarter is 75, find out the number of workers left and discharged:

Show Answer

Q844) Department prepares plans and specifications
of each job, supervise production activities, undertake time and motion studies, perform job analysis etc. Show Answer

Q845) Welfare expenses like canteen, medical, recreation services provided to the employees are examples of:
Show Answer

Q846) Bee Ltd. follows Halsey plan for remuneration to workers.
A worker Ram, has a rate of wages of 3,000 per week for 48 hours, plus
a cost of living bonus of 25 per hour worked. He is given an 8 hours task
to perform, which he accomplishes in 6 hours. He is allowed 40% of the time saved as premium bonus.
What would be his total earning for that task? Show Answer