Mega File for Mgt 402 Quiz 1 & 2 110 % Sure Mcqs bu studiesguruz

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1/875

Mgt 402 online quiz 1

Arslan rao

Question # 1 of 15 ( Start time: 05:28:04 PM ) Total Marks: 1

Which of the following is considered as basic systems of remunerating labor?

Select correct option:

Time rate system

Piece rate system

Halsey Premium plan

Both time rate and piece rate system


A method by which the first goods to be received are said to be the first to by sold


LIFO

AVCO

FIFO

WASH


Overtime that is necessary in order to fulfill customer orders is called:


Avoidable overtime

Unavoidable overtime

Premium Overtime

Flex time


__________ is the time worked over and above the employee's basic working week.


Flex time

Overtime

Shift allowance

Commission



2/875

Differential cost has the behavior of ?


Fixed cost

Step cost

Variable/semi avriable costAll of the given options


High labor turnover is NOT desirable because:


It denotes the instability of the labor force

It is an indication of high labor cost

It shows frequent changes in the labor force

All of the given options


Closing work in process Inventory of last year:


Is treated as Opening inventory for current year

Is not carried forward to next year

Become expense in the next year

Charge to Profit & Loss account


Sales are Rs. 450,000. Beginning finished goods were Rs. 23,000. Ending finished goods areRs. 30,000. The cost of goods sold is Rs. 300,000. What is the cost of goods manufactured?


Rs. 323,000

Rs. 330,000

Rs. 293,000

None of the given options


The main difference between the profit center and investment center is:


Decision making

Revenue generation

Cost incurrence

Investment



3/875

Which of the following is an example of Statutory deductions:


Deduction as Income Tax

Deduction as social security

Subscriptions to a trade unionNone of the given


Costs which are constant for a relevant range of activity and rise to new constant level once

that range exceeded is called:


A fixed cost

A variable cost

A mixed cost

A step cost


If opening inventory of material is Rs.20,000 and closing inventory is Rs. 40,000.the

Average inventory amount will be:


Rs. 40,000

Rs. 30,000

Rs. 20,000

Rs. 10,000


The cost of electricity bill of the factory is treated as:


Fixed cost

Variable cost

Step cost

Semi variable cost


A cost unit isSelect correct option:

The cost per hour of operating a machine

The cost per unit of electricity consumed

A unit of product or services in relation to which costs are ascertained

A measure of work output in a standard hour


4/875


The Process of cost apportionment is carried out so that:


Cost may be controlled

Cost unit gather overheads as they pass through cost centersWhole items of cost can be charged to cost centers

Common costs are shared among cost centers


In cost Accounting, abnormal loss is charged to:


Factory overhead control account

Work in process account

Income Statement

Entire production


The flux method of labor turnover denotes:


Workers appointed against the vacancy caused due to discharge or quitting of the

organization

Workers appointed in replacement of existing employees

Workers employed under the expansion schemes of the company

The total change in the composition of labor force


Which of the following is sales force payroll incentive?


Commission

Shift allowance

Over time payment

Bonus


The supervisor salary is treated as:


Direct labor cost

Indirect labor cost

Conversion cost



5/875


Generally, the danger level of stock is fixed ________ the minimum level.


BelowAbove

Equal

Danger level has no relation to minimum level


The abbreviation LIFO is:


Large integrated financial organization

Least interesting financial option

The last in first out methodNone of the given options


Gross pay includes which of the following items?


Basic pay + bonus pay

Overtime payment + shift allowances

Rent and conveyance allowances



__________ is the time worked over and above the employee's basic working week.


Flex time

Overtime

Shift allowance

Commission


Which of the following cost is used in the calculation of cost per unit?Select correct option:

Total production cost

Cost of goods available for sales

Cost of goods manufactured

Cost of goods Sold


6/875


From employer point of view, the total cost of wages and salaries is a combination of which

of the following?


Gross wages and salaries+employer's provident fund contributionsGross wages and salaries+employee's provident fund contributions

Gross wages and salaries + Income Tax deductions

Gross wages and salaries + pension scheme payments


Store incharge after receiving the material as per the goods received note, places the

material at its location and makes an entry in_________ .


Bin Card

Store Ledger CardStock Ledger



Which of the following items of expense are to be add in FOH cost


Rent of factory + Head office rent + salaries to factory watchman

Rent of factory + factory lighting bill + Directors salaries

Rent of factory + factory lighting bill + Factory employees salaries

Head office rent + Factory property tax + Factory small tools


Direct materials cost is Rs. 80,000. Direct labor cost is Rs. 60,000. Factory overhead is Rs.

90,000. Beginning goods in process were Rs. 15,000. The cost of goods manufactured is Rs.

245,000. What is the cost assigned to the ending goods in process?


Rs. 45,000

Rs. 15,000

Rs. 30,000

There will be no ending Inventory


A method by which the good used are priced out at average cost is known as:


BCVO

AVCO


7/875

c.FIFO

LIFO


When FOH is under applied and charged to Net profit , the treatment would be:


Under applied Add net profit

Under applied Less net profit

Under applied Less operating expense



When prices are rising over time, which of the following inventory costing methods willresult in the lowest gross margin/profits?


FIFOLIFO

Weighted AverageCannot be determined

Question # 2 of 15 ( Start time: 06:02:55 PM ) Total Marks: 1In which of the following would there be a difference between financial and managerial

accounting?Select correct option:

Users of the information

Purpose of the informationFlexibility of practices



Net sales = Sales less:Select correct option:

Sales returns

Sales discounts

Sales returns & allowancesSales returns & allowances and sales discounts


Working hours of labor can be calculated with the help of all except:Select correct option:

Smart card

Time sheet

Clock cardStore card



8/875

Which of the following cost is used in the calculation of cost per unit?


Total production cost

Cost of goods available for salesCost of goods manufactured

Cost of goods Sold


Cost accounting concepts include all of the following EXCEPT:Select correct option:

Planning

ControllingSharing

Costing





Least interesting financial optionThe last in first out method



Under LIFO method the value of issues is close to:Select correct option:

Second hand price

Current market priceHistorical costAll of given options


Which of the following is/are not associated with ordering costs?Select correct option:

InterestInsurance

Opportunity costsAll of the given options

Question # 10 of 15 ( Start time: 06:05:32 PM ) Total Marks: 1PVC company has ordering quantity 10,000 units.They have storage capacity 20,000units,The average inventory would be:


20,000

5,00010,000

25,000


9/875


According to IASB framework, Financial statements exhibit to its users the:Select correct option:

Financial position

Financial performanceCash inflow and outflow analysis



Taylor's Differential Piece Rate Plan uses-----------piece rates.Select correct option:

Three

TwoFour

Five

Question # 13 of 15 ( Start time: 06:07:00 PM ) Total Marks: 1The FIFO inventory costing method (when using a perpetual inventory system) assumesthat the cost of the earliest units purchased is allocated in which of the following ways?


First to be allocated to the ending inventory

Last to be allocated to the cost of goods soldLast to be allocated to the ending inventory

First to be allocated to the cost of good sold

Question # 14 of 15 ( Start time: 06:07:31 PM ) Total Marks: 1In furniture manufacturing use of nail, pins, glue, and polish which use to increase its

esteem value that cost is treated as:Select correct option:

Direct material costIndirect material cost

FOH costPrime cost

Question # 15 of 15 ( Start time: 06:07:46 PM ) Total Marks: 1While deducting Income Tax from the gross pay of the employee, the employer acts as a

(an) _________________for Income Tax Department.Select correct option:

Agent of his own CompanyPaid tax collection agentUnpaid tax collection agent


The flux method of labor turnover denotes:



10/875

Workers appointed against the vacancy caused due to discharge or quitting of the

organization

Workers appointed in replacement of existing employees

Workers employed under the expansion schemes of the company

The total change in the composition of labor force

Question # 2 of 20 ( Start time: 10:49:18 AM ) Total Marks: 1

A store ledger card is similar to the ________ .


Stock ledger

Bin card

Material card

Purchase requsition card


Cost accounting concepts include all of the following EXCEPT:



11/875

Planning

Controlling

Sharing

Costing


Generally, the danger level of stock is fixed ________ the minimum level.


Below

Above

Equal



Which of the following cost has both features fixed and variable?


Step fixed cost

Fixed cost


12/875

Variable cost

Semi variable cost


Net sales = Sales less:


Sales returns

Sales discounts

Sales returns & allowances

Sales returns & allowances and sales discounts


All of the following are essential requirements of a good wage system EXCEPT:


Reduced overhead costs

Reduced per unit variable cost

Increased production

Increased operating costs


13/875


Which of the following would be considered to be an investment centre?


Managers have control over marketing

Management have a sales team

Management have a sales team and are given a credit control function

Managers can purchase capital assets and are given a credit control function


All of the following are terms used to denote Factory Overheads EXCEPT:


Factory burden

Factory expenses

Manufacturing overhead

Conversion costs



14/875

Direct material opening inventory add net purchases is called


Material consumed

Material available for use

Total material purchsed

Material ending inventory


Costs which are constant for a relevant range of activity and rise to new constant level

once that range exceeded is called:


A fixed cost

A variable cost

A mixed cost

A step cost


Which of the following is / are element / s of production payroll?



15/875

Direct labor force wages

Administrative wages

Selling wages



Cost of finished goods inventory is calculated by:


Multiplying units of finished goods inventory with the cost per unit

Dividing units of finished goods inventory with the cost per unit

Dividing per unit cost with finished goods inventory

Deducting total cost from finished goods inventory


The journal entry of purchse of stock under periodic inventory system would be?


Inventory to Cash


16/875

Cash to Purchases

Purchses to Inventory



An organistation sold units 4000 and have closing finished goods 3500 units and

opening finished goods units were 1000.The quantity of unit produced would be:


7500 units

6500 units

4500 units

8500 units


Under Periodic Inventory system Purchase of inventory is treared as:


Assets

Expense


17/875

Income

Liability





Least interesting financial option

The last in first out method



Gross pay less deductions represents all except:


Net pay

Take home pay

Total pay

Other income


18/875


Under LIFO method the value of issues is close to:


Second hand price

Current market price

Historical cost

All of given options


EOQ is the order quantity that _________ over our planning horizon


Minimizes total ordering costs

Minimizes total carrying costs

Minimizes total inventory costs

Minimize the required safety stock


19/875




Direct labor cost

Indirect labor cost

Conversion cost


MC090408226 : Shafqat Manzoor

Quiz Start Time: 05:55 PM

Time Left89

sec(s)


In order to ensure efficient functioning of the stores department and


20/875

steady flow of materials to the production departments, the

restocking of stores is duty of:


Managers

Storekeeper

Production In charge

Sales supervisor

Click here to Save Answ er & Move to Next Question



Time Left86

sec(s)


What will be the impact of normal loss on the overall per unit cost?



21/875

Per unit cost will increase

Per unit cost will decrease

Per unit cost remain unchanged

Normal loss has no relation to unit cost




Time Left85

sec(s)


Which of the following statement measures the financial position of

the entity on particular time?


Income Statement


22/875

Balance Sheet

Cash Flow Statement

Statement of Retained Earning




Time Left87

sec(s)


According to IASB framework, Financial statements exhibit to its

users the:


Financial position

Financial performance


23/875

Cash inflow and outflow analysis





Time Left87

sec(s)


Gross pay less deductions represents all except:


Net pay

Take home pay

Total pay

Other income


24/875




Time Left88

sec(s)


Where the applied FOH cost is less than the actual FOH cost it is:


Unfavorable variance

Favorable variance

Normal variance

Budgeted variance



25/875



Time Left86

sec(s)


If a predetermined FOH rate is not applied and the volume of

production is reduced from the planned capacity level, the cost per

unit expected to:


Remain unchanged for fixed cost and increase for variable cost

Increase for fixed cost and remain unchanged for variable cost

Increase for fixed cost and decrease for variable cost

Decrease for both fixed and variable costs


MC090408226 : Shafqat Manzoor Time Left 88


26/875


sec(s)


Cost of Goods Manufactured can be calculated as follow


Total factory Cost Add Opening Work in process inventory Less

Closing Work in process inventory

Total factory Cost Less Opening Work in process inventory Add


Total factory Cost Less Opening Work in process inventory Less


Total factory Cost Add Opening Work in process inventory Add



MC090408226 : Shafqat Manzoor Time Left 87


27/875


sec(s)


The Process of cost apportionment is carried out so that:



Cost unit gather overheads as they pass through cost centers

Whole items of cost can be charged to cost centers





Time Left89

sec(s)


28/875


Which of the following statement is TRUE about FOH applied rates?


They are used to control overhead costs

They are based on actual data for each period

They are predetermined in advance for each period

None of the given


A high inventory turnover may indicate:


An efficient use of the investment in inventory

A high risk of stock-outs

Stock position of store room



29/875

Increase in material Inventory means:


The ending inventory is greater than opening inventory

The ending inventory is less than opening inventory

Both ending and opening inventories are equal

Can not be determined

Net Income before Interest and tax is also called:


Operating Income/Profit

Gross Profit

Marginal Income

Other Income

Inventory turnover ratio can be calculated as follow?



30/875

Cost of goods sold/Average inventory

Gross profit/Average inventory

Cost of goods sold/sale

Cost of goods sold/Gross profit

Gross pay includes which of the following items?


Basic pay + bonus pay

Overtime payment + shift allowances

Rent and conveyance allowances


A method by which the good used are priced out at average cost is

known as:


BCVO


31/875

AVCO

c.FIFO

LIFO

Which of the following is to be called product cost


Material cost

Labor cost

FOH cost


Cost of goods sold can be calculated as follow


Cost of goods manufactured Add Opening finished goods

inventory Less Closing finished goods inventory

Cost of goods manufactured Less Opening finished goods

inventory Less Closing finished goods inventory


32/875

Cost of goods manufactured Less Opening finished goods

inventory Add Closing finished goods inventory

Cost of goods manufactured Add Opening finished goodsinventory Add Closing finished goods inventory

main purpose of cost accounting is to


Maximize profits

Help in inventory valuation

Provide information to management for decision making

Aid in the fixation of selling price



Sales returns

Sales discounts



33/875




Sales returns

Sales discounts



According to IASB framework, Financial statements exhibit to its

users the:


Financial position




Cost accounting department prepares _____________ that helps the


34/875

in preparing final accounts.


Cost sheets

Cost of goods sold statement

Cost of production Report

Material requisition form



Is treated as Opening inventory for current year

Is not carried forward to next year



Which of the following element must be taken into account while

calculating total earnings of a worker under different incentive wage

schemes?


35/875


Rate per unit

Units of production

Extra time taken by employee to complete the production

Number of workers employed




Income Statement

Balance Sheet

Cash Flow Statement


Which of the following statement measures the financial position ofthe entity on particular time?



36/875

Income Statement

Balance Sheet

Cash Flow Statement


Which of the following is correct for maximum level?


Reorder level (Minimum consumption x Lead time) + EOQ

(Maximum consumption x Lead time) (Minimum consumption x

Lead time) + EOQ

[(Maximum consumption - Minimum consumption) Lead time]+ EOQ


When FOH is Over applied and charged to Net profit through income

statement, the treatment would be



37/875

Under applied Add in net profit

Under applied Less from net profit

Under applied Less from operating expense


While calculating the EOQ, number of orders is calculated by:


Multiplying the required units with cost per order

Dividing required unit by ordered quantity

Multiplying the required units with ordered quantity

Multiplying the ordered quantity with cost per order

main difference between the profit center and investment center is:


Decision making

Revenue generation


38/875

Cost incurrence

Investment

Which of the following best describes the manufacturing costs?


Direct materials, direct labor and factory overhead

Direct materials and direct labor

Direct materials, direct labor, factory overhead, and

administrative overhead

Direct labor and factory overhead



Direct labor cost

Indirect labor cost

Conversion cost


39/875


When prices are rising over time, which of the following inventory

costing methods will result in the lowest gross margin/profits?


FIFO

LIFO

Weighted Average

Cannot be determined

Which of the following is/are not associated with ordering costs?


Interest

Insurance

Opportunity costs


Which of the following is correct?


40/875


Units sold=Opening finished goods units + Units produced

Closing finished goods units

Units Sold = Units produced + Closing finished goods units -

Opening finished goods units

Units sold = Sales + Average units of finished goods inventory

Units sold = Sales - Average units of finished goods inventory

Manufacturing entities classified the inventory in which of three

kinds?


Material inventory,WIP inventory,Finished goods inventory

Material inventory,purchased good inventory,WIP inventory

Material inventory,purchased good inventory,Finished goods

inventory

WIP inventory,Finished goods inventory,purchased good inventory

Cost of Goods Manufactured can be calculated as follow


41/875


Total factory Cost Add Opening Work in process inventory Less


Total factory Cost Less Opening Work in process inventory Add


Total factory Cost Less Opening Work in process inventory Less


Total factory Cost Add Opening Work in process inventory Add


_______ are future costs that effect the current management

decision.


Sunk Cost

Standard Cost

Relevant Cost

Irrelevant Cost

From employer point of view, the total cost of wages and salaries is a


42/875

combination of which of the following?


Gross wages and salaries+employer's provident fund contributions

Gross wages and salaries+employee's provident fund contributions

Gross wages and salaries + Income Tax deductions

Gross wages and salaries + pension scheme payments

A standard rate is paid to the employee when he completed his job:


In time less than the standard

In standard time

In time more than standard

Both in standard time and more than the standard time

If labor is satisfied with high wages it may ultimately lead to:



43/875

Increased production and productivity

Increased efficiency

Reduced labor and overhead costs


Costs which are constant for a relevant range of activity and rise to

new constant level once that range exceeded is called:


A fixed cost

A variable cost

A mixed cost

A step cost

What will be the impact of normal loss on the overall per unit cost?


Per unit cost will increase


44/875

Per unit cost will decrease

Per unit cost remain unchanged

Normal loss has no relation to unit cost

What was the inventory turnover ratio?

3.57 times

3.67 times

3.85 times

5.36 times

f opening inventory of material is Rs.20,000 and closing inventory is Rs.40,000.the Average inventory amount will be:


Rs. 40,000

Rs. 30,000

Rs. 20,000

Rs. 10,000

40000+20000=60000/2=30,000


45/875

A method by which the good used are priced out at average cost is

known as:


BCVO

AVCO

c.FIFO

LIFO

Weighted average also called AVCO pge42



Units sold=Opening finished goods units + Units produced Closing

finished goods units pge37

Units Sold = Units produced + Closing finished goods units - Opening

finished goods units




Net sales = Sales less:Select correct option:

Sales returns

Sales discounts


46/875




Which of the following costs is part of the prime cost for

manufacturing company?


Cost of transporting raw materials from the suppliers premisesWages of factory workers engaged in machine maintenance

Depreciation of truck used for deliveries to customers

Cost of indirect production materials


A cost unit is




A unit of product or services in relation to which costs are

ascertained pge 06

A measure of work output in a standard hour


Sales are Rs. 450,000. Beginning finished goods were Rs. 23,000.


47/875

Ending finished goods are Rs. 30,000. The cost of goods sold is Rs.

300,000. What is the cost of goods manufactured?


Rs. 323,000

Rs. 330,000

Rs. 293,000

None of the given options 30,00,00+ 30,000 23000 = 307000

Question # 8 of 15 ( Start time: 12:59:33 PM ) Total Marks: 1Amount of net purchase can be calculated as follow


Purchase of direct material add trade discount less purchase return

add carriage inward less other material handling cost

Purchase of direct material less trade discount l add purchase return

add carriage inward less other material handling costPurchase of direct material less trade discount less purchase return

less carriage inward add other material handling cost

Purchase of direct material less trade discount less purchase return

add carriage inward add other material handling cost


According to IASB framework, Financial statements exhibit to itsusers the:


Financial position


48/875





EOQ is a point where:


Ordering cost is equal to carrying cost page57

Ordering cost is higher than carrying cost

Ordering cost is lesser than the carrying cost

Total cost is maximum




Second hand price

Current market priceHistorical cost


Last In First Out (LIFO):

This method assumes that the goods received most recently in the

stores or produced recently

are the first ones to be delivered to the requisitioning department.

The older inventory, therefore, is left over at the end pge 42


49/875




Interest

Insurance

Opportunity costs



The main purpose of cost accounting is to


Maximize profits

Help in inventory valuation

Provide information to management for decision making





Cost of goods manufactured Add Opening finished goods inventoryLess Closing finished goods inventory

Cost of goods manufactured Less Opening finished goods inventory

Less Closing finished goods inventory



50/875

Add Closing finished goods inventory

Cost of goods manufactured Add Opening finished goods inventory Add

Closing finished goods inventory


In which of the following would there be a difference between

financial and managerial accounting?


Users of the informationPurpose of the information

Flexibility of practices


uestion # 1 of 15 ( Start time: 03:16:06 PM ) Total Marks: 1

If, Sales = Rs. 800,000 appli Markup = 25% of cost What would be the

value of Gross profit?


Rs. 200,000

Rs. 160,000

While calculating the EOQ, number of orders is calculated by:



51/875

Multiplying the required units with cost per order

Dividing required unit by ordered quantity

Multiplying the required units with ordered quantity

Multiplying the ordered quantity with cost per order






Rs. 323,000

Rs. 330,000

Rs. 293,000


By useing table method where-------------- is equal,that point is called

Economic order quanity.


Ordering cost

Carrying costOrdering and carrying cost

Per unit order cost


52/875




Ordering cost is equal to carrying cost




Question # 11 of 15 ( Start time: 03:29:44 PM ) Total Marks: 1Cost of finished goods inventory is calculated by:


Multiplying units of finished goods inventory with the cost per unit

Dividing units of finished goods inventory with the cost per unit

Dividing per unit cost with finished goods inventory

Deducting total cost from finished goods inventory


Which of the following is indirect cost?


The depreciation of machinery

The overtime premium incurred at the specific request of a customer

The hire of tools for a specific job



53/875


The components of the prime cost are: prime

cost and conversion cost 3rd


Direct Material + Direct Labor + Other Direct Cost

Direct Labor + Other Direct Cost + FOH

Direct Labor + FOH










Taking steps for the fresh purchase of those stocks which have beenexhausted and for which requisitions are to be honored in future is an

easy explanation of:



54/875

Overstocking

Under stocking

Replenishment of stock

Acquisition of stock

If opening inventory of material is Rs.20,000 and closing inventory is

Rs. 40,000.the Average inventory amount will be:


Rs. 40,000

Rs. 30,000

Rs. 20,000

Rs. 10,000

entities classified the inventory in which of three kinds?


Material inventory,WIP inventory,Finished goods inventory

Material inventory,purchased good inventory,WIP inventory

Material inventory,purchased good inventory,Finished goods inventory

WIP inventory,Finished goods inventory,purchased good inventory

A cost unit is



55/875



A unit of product or services in relation to which costs are

ascertainedA measure of work output in a standard hour

Which of the following is to be called product cost


Material costLabor cost

FOH cost



Ending finished goods are Rs. 30,000. The cost of goods sold is Rs.300,000. What is the cost of goods manufactured?


Rs. 323,000

Rs. 330,000

Rs. 293,000


Sales = Rs. 800,000 appli Markup = 25% of cost What would be the

value of Gross profit?



56/875

Rs. 200,000

Rs. 160,000

Rs. 480,000Rs. 640,000




Income Statement

Balance Sheet

Cash Flow Statement


The components of the prime cost are:


Direct Material + Direct Labor + Other Direct Cost

Direct Labor + Other Direct Cost + FOH

Direct Labor + FOH


Gross profit = Rs. 40,000 GP Margin = 25% of sales What will be thevalue of cost of goods sold?


Rs. 160,000


57/875

Rs. 120,000

Rs. 40,000


Weighted average cost per unit is calculated by which of the following

formula?


Cost of goods issued/number of units issued

Total cost/total unitsCost of goods manufactured/closing units

Cost of goods sold/total units

If, COGS = Rs. 50,000 GP Margin = 25% of sales What will be the value

of Sales?


Rs. 200,000

Rs. 66,667

Rs. 62,500


f, Sales = Rs. 600,000 Markup = 20% of cost What would be the valueof Gross profit?


Rs. 200,000


58/875

Rs. 100,000

Rs. 580,000

Rs. 740,000

The danger Level can be calculated ?


Average consumption x Lead time to get urgent supplies

Normal consumption x Lead time to get urgent supplies

Maximum consumption x Lead time to get urgent suppliesMinimum consumption x Lead time to get urgent supplies










Which of the following costs is part of the prime cost for

manufacturing company?



59/875

Cost of transporting raw materials from the suppliers premises

Wages of factory workers engaged in machine maintenance

Depreciation of truck used for deliveries to customers

Cost of indirect production materials






Rs. 323,000

Rs. 330,000

Rs. 293,000



Amount of net purchase can be calculated as follow


Purchase of direct material add trade discount less purchase return

add carriage inward less other material handling cost

Purchase of direct material less trade discount l add purchase returnadd carriage inward less other material handling cost


less carriage inward add other material handling cost


60/875


add carriage inward add other material handling cos









Second hand price

Current market price

Historical cost


Marks: 1

Marks: 1



Interest

Insurance

Opportunity costs



61/875




Cost of goods manufactured Add Opening finished goods inventory





Add Closing finished goods inventory

Cost of goods manufactured Add Opening finished goods inventory Add

Closing finished goods inventory


In which of the following would there be a difference between

financial and managerial accounting?



Purpose of the information

Flexibility of practices


Byer produced 20,000 units and their total factory cost was Rs.

450,000,other cost like property tax on factory bulding was Rs. 10,000


62/875

included in that cost till year ended the cost of per unit would be:


Rs.22.5Rs.23.5

Rs.24.5

Rs.26.5

Direct material opening inventory add net purchases is called


Material consumed

Material available for use

Total material purchsed

Material ending inventory

An organistation sold units 4000 and have closing finished goods 3500

units and opening finished goods units were 1000.The quantity of unit

produced would be:


7500 units

6500 units

4500 units

8500 units


63/875

Where the applied FOH cost is greater than the actual FOH cost it is:


Unfavorable varianceFavorable variance

Normal variance

Budgeted variance

If, COGS = Rs. 70,000 GP Margin = 30% of sales What will be the

value of Sales?Select correct option:

Rs. 200,000

Rs. 66,667

Rs. 100,000

Rs. 62,500








64/875

he abbreviation LIFO is:


Large integrated financial organizationLeast interesting financial option

The last in first out method


Direct materials cost is Rs. 80,000. Direct labor cost is Rs. 60,000.

Factory overhead is Rs. 90,000. Beginning goods in process were Rs.15,000. The cost of goods manufactured is Rs. 245,000. What is the

cost assigned to the ending goods in process?


Rs. 45,000

Rs. 15,000

Rs. 30,000

Non of thz

The Term Maximum Level Represents:


The maximum stock level indicates the maximum quantity of an item of

material which can be held in stock at any time.


material which cannot be held in stock at any time.


65/875

The Average stock level indicates the maximum quantity of an item of


The Available stock level indicates the maximum quantity of an item of


The main purpose of cost accounting is to


Maximize profits

Help in inventory valuationProvide information to management for decision making


When FOH is under applied and charged to Net profit , the treatment

would be:


Under applied Add net profit

Under applied Less net profit

Under applied Less operating expense






66/875




Units sold = Sales + Average units of finished goods inventoryUnits sold = Sales - Average units of finished goods inventory



Is treated as Opening inventory for current yearIs not carried forward to next year



The Term Maximum Level Represents:





material which cannot be held in stock at any time.

The Average stock level indicates the maximum quantity of an item of


The Available stock level indicates the maximum quantity of an item of



67/875

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M GT402 Onl ine Quiz#28 Qui zzes Attempt & SolvedBy H afi z Sal man M ajeed

Question # 1 of 15 ( Start time: 05:52:27 PM ) Total Marks: 1The main purpose of cost accounting is to


Maximize profitsHelp in inventory valuationProvide information to management for decision making


Question # 2 of 15 ( Start time: 05:52:43 PM ) Total Marks: 1Consider the following data for the month of May: Sales 150 units,Opening units 120units,Closing 80 units Based on the data, production in May will have to be?


150 units50 units

190 units110 units


While transporting petrol, a little quantity will be evaporated; such kind of loss is termedas:Select correct option:

Normal LossAbnormal Loss

It is incremental lossIt can not be abnormal loss




Units sold=Opening finished goods units + Units produced Closing finished goodsunits

Units Sold = Units produced + Closing finished goods units - Opening finished goodsunits

Units sold = Sales + Average units of finished goods inventoryUnits sold = Sales - Average units of finished goods inventory


68/875


69/875

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Rs. 200,000

Rs. 160,000Rs. 480,000

Rs. 640,000

Question # 10 of 15 ( Start time: 06:00:49 PM ) Total Marks: 1Amount of net purchase can be calculated as follow


Purchase of direct material add trade discount less purchase return add carriage inward

less other material handling costPurchase of direct material less trade discount l add purchase return add carriage inward

less other material handling costPurchase of direct material less trade discount less purchase return less carriage inward

add other material handling cost

Purchase of direct material less trade discount less purchase return add carriage inwardadd other material handling cost


Contribution margin contributes to meet which one of the following options?Select correct option:

Variable cost

Fixed costOperating costNet Profit

Question # 12 of 15 ( Start time: 06:01:37 PM ) Total Marks: 1Increase in material Inventory means:


The ending inventory is greater than opening inventoryThe ending inventory is less than opening inventory



Question # 13 of 15 ( Start time: 06:01:53 PM ) Total Marks: 1The Process of cost apportionment is carried out so that:


Cost may be controlledCost unit gather overheads as they pass through cost centers

Whole items of cost can be charged to cost centers


70/875

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A cost centre isSelect correct option:

A unit of product or service in relation to which costs are ascertained

An amount of expenidure attributable to an activityA production or service location,function,activity or item of equipment for which costs

are accumulated

A centre for which an indvidual budget is drawn up

Question # 15 of 15 ( Start time: 06:02:34 PM ) Total Marks: 1Reduction of labor turnover, accidents, spoilage, waste and absenteeism are the results ofwhich of the following wage plan?


Piece rate planTime rate plan

Differential planGroup bonus system


A spending variance for factory overhead is the difference between actual factoryoverhead cost and factory overhead cost that should have been incurred for actual hoursworked and results from:


Price difference of FOH costs

Quantity differences of FOH costsPrice and quantity differences for FOH costs

Difference caused by production volume variations


When two products are manufactured during a common process, the factor that determinewhether the products are joint product or one main product and one is by product is the:Select correct option:

Potential marketability for each productAmount of work expended in the production of each product

Relative total sales value of each productManagement policy


71/875

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Which of the following is called Non Statutory deductions:Select correct option:

Subscriptions to a trade union

Contributions by the employee to a pension schemeContributions by the employer to a pension scheme

All of the given


While constructing a Break even chart, the gap between sales line and variable cost lineshows which of the following?


Fixed cost

Break even pointContribution margin

Variable cost

Question # 5 of 15 ( Start time: 06:16:23 PM ) Total Marks: 1When 10,000 ending units of work-in-process are 30% completed as to conversion, itmeans:


30% of the units are completed70% of the units are completed

Each unit has been completed to 70% of its final stageEach of the unit is 30% completed

Question # 6 of 15 ( Start time: 06:16:47 PM ) Total Marks: 1Which of the following is true when piece rate system is used for wage determination?


worker is paid on the basis of time taken by him to perform the work

worker is paid on the basis of productionPiece rate system is more beneficial than a guaranteed minimum wage systemNone of the given options

Question # 7 of 15 ( Start time: 06:17:03 PM ) Total Marks: 1Which of the following would be considered to be an investment centre?


Managers have control over marketing


72/875


73/875

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Question # 12 of 15 ( Start time: 06:20:46 PM ) Total Marks: 1In which of the following would there be a difference between financial and managerial

accounting?Select correct option:


Purpose of the informationFlexibility of practicesAll of the given options


Which of the following is true of the budgeting process?Select correct option:

The cash budget has an effect on all operating budgetsOperating budgets must be prepared before the cash budget can be prepared

Financial budgets must be prepared before operating budgets can be preparedBudgets can be prepared in any order as long as they are all completed

Question # 14 of 15 ( Start time: 06:22:20 PM ) Total Marks: 1In which of the following way the last month closing inventory figure will be treated?


Will not be carried forwardAs opening inventory of next month

As closing inventory of next monthAs units sold for the same months

Question # 15 of 15 ( Start time: 06:23:46 PM ) Total Marks: 1An assumption of CVP analysis is that a change in total costs is caused because of a

change in which of the following factor?Select correct option:

Direct labor costThe number of units soldSales commission per unitDirect material cost


Which of the following is a point of differentiation between blanket rates and departmentrates?



74/875

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Blanket rate is a single overhead rate established for the entire factoryDepartment rates are separate overhead rates for all departments of factory through

which the products passDepartment rate is a single overhead rate established for the entire factory

Blanket rates are separate overhead rates for all departments of factory through whichthe product passes

Question # 2 of 15 ( Start time: 06:54:54 PM ) Total Marks: 1Overtime that is necessary in order to fulfill customer orders is called:


Avoidable overtimeUnavoidable overtimePremium Overtime

Flex time

Question # 3 of 15 ( Start time: 06:55:29 PM ) Total Marks: 1Variable costing is also known as:


Indirect Costing

Direct Costing

Marginal CostingBoth Direct Costing & Marginal Costing

Question # 4 of 15 ( Start time: 06:56:02 PM ) Total Marks: 1If, COGS = Rs. 70,000 GP Margin = 30% of sales What will be the value of Sales?Select correct option:

Rs. 200,000

Rs. 66,667Rs. 100,000

Rs. 62,500

Question # 5 of 15 ( Start time: 06:56:43 PM ) Total Marks: 1All of the following are terms used to denote Factory Overheads EXCEPT:Select correct option:

Factory burden

Factory expensesManufacturing overhead

Conversion costs


75/875


76/875

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It denotes the instability of the labor force

It is an indication of high labor costIt shows frequent changes in the labor force


Question # 11 of 15 ( Start time: 07:01:43 PM ) Total Marks: 1Of the following manufacturing operations, which is the best suited to the utilization of ajob order system?


Soft drink bottling operationCrude oil refiningPlastic molding operation

Cement Production

Question # 12 of 15 ( Start time: 07:02:38 PM ) Total Marks: 1The difference over the period of time between actual and applied FOH will usually be

minimal when the predetermined overhead rate is based on:Select correct option:

Normal capacity

Designed capacityDirect Labor hoursMachine hours

Question # 13 of 15 ( Start time: 07:03:00 PM ) Total Marks: 1If joint products are to be processed further beyond the point of separation, costs should

be assigned to the products on the basis of:Select correct option:

Adjusted sales value

Ultimate sales value

A physical unit of measureAn engineering analysis


PVC company has ordering quantity 10,000 units.They have storage capacity 20,000units,The average inventory would be:


20,000


77/875

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5,000

10,00025,000


Which of the following best describes piece rate system?Select correct option:

The increased volume of production results in decreased cost of productionThe increased volume of production in minimum time

Establishment of fair standard ratesHigher output is a result of efficient management

Question # 1 of 15 ( Start time: 07:12:04 PM ) Total Marks: 1Loss by fire is an example of:



Incremental LossCan not be determined


The appropriate journal entry to transfer the cost of completed units from the Work inProcess account would involve a credit to Work in Process and a debit to which of thefollowing accounts?


Income Summary

Raw Materials InventoryFinished Goods

Manufacturing Summary


Which of the following manufacturers is most likely to use a job order cost accountingsystem?Select correct option:

A soft drink producerA flour mill

A textile millA builder of offshore oil rigs


78/875


79/875

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BCVOAVCO

c.FIFOLIFO


Which of the following is/are reasons of abnormal loss?Select correct option:

Defective material usedMachine breakdown

Poor workmanshipsAll of the given

Question # 11 of 15 ( Start time: 07:16:29 PM ) Total Marks: 1Which of the following best describes piece rate system?


The increased volume of production results in decreased cost of productionThe increased volume of production in minimum timeEstablishment of fair standard rates

Higher output is a result of efficient management

Question # 12 of 15 ( Start time: 07:16:40 PM ) Total Marks: 1Which one of the following factors would cause budgeted revenue to be less than the

expected demand?Select correct option:

Excess capacity existsAbundant resources are available

Demand exceeds capacityExcess supply of labor exists

Question # 13 of 15 ( Start time: 07:18:08 PM ) Total Marks: 1Which of the following is/are not associated with ordering costs?Select correct option:

InterestInsurance

Opportunity costsAll of the given options


80/875


81/875

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Ordering cost is higher than carrying costOrdering cost is lesser than the carrying cost


Question # 4 of 15 ( Start time: 07:49:39 PM ) Total Marks: 1The difference over the period of time between actual and applied FOH will usually be

minimal when the predetermined overhead rate is based on:Select correct option:

Normal capacityDesigned capacity

Direct Labor hoursMachine hours

Question # 5 of 15 ( Start time: 07:50:02 PM ) Total Marks: 1Working hours of labor can be calculated with the help of all except:


Smart cardTime sheetClock card

Store card

Question # 6 of 15 ( Start time: 07:50:28 PM ) Total Marks: 1Which of the following is called Non Statutory deductions:


Subscriptions to a trade union

Contributions by the employee to a pension schemeContributions by the employer to a pension scheme

All of the given


The main purpose of cost accounting is toSelect correct option:

Maximize profits

Help in inventory valuationProvide information to management for decision making




82/875


83/875


84/875


85/875

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Cost of production Report

Material requisition form

Question # 6 of 15 ( Start time: 08:09:13 PM ) Total Marks: 1FOH applied rate of Rs. 5.60 per machine hour. During the year the FOH to Rs.275,000

and 48,000 machine hours were used. Which one of following statement is correct?Select correct option:

Overhead was under-applied by Rs.6,200Overhead was over-applied by Rs.6,200


Question # 7 of 15 ( Start time: 08:10:37 PM ) Total Marks: 1A cost centre is


A unit of product or service in relation to which costs are ascertainedAn amount of expenidure attributable to an activity

A production or service location,function,activity or item of equipment for which costsare accumulatedA centre for which an indvidual budget is drawn up

Question # 8 of 15 ( Start time: 08:10:46 PM ) Total Marks: 1Which of the following element must be taken into account while calculating totalearnings of a worker under different incentive wage schemes?


Rate per unit

Units of productionExtra time taken by employee to complete the production

Number of workers employed


If, Gross profit = Rs. 40,000 GP Margin = 20% of sales What will be the value of cost ofgoods sold?Select correct option:

Rs. 160,000Rs. 120,000

Rs. 40,000Rs. 90,000


86/875

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The Process of cost apportionment is carried out so that:Select correct option:


Cost unit gather overheads as they pass through cost centersWhole items of cost can be charged to cost centers



Loss by fire is an example of:Select correct option:


Incremental LossCan not be determined


The abbreviation LIFO is:Select correct option:


Least interesting financial optionThe last in first out methodNone of the given options

Question # 13 of 15 ( Start time: 08:13:14 PM ) Total Marks: 1When a budget is administered wisely, it will


Discourage managers and employeesProvide a framework for performance evaluation

Eliminate coordination and communication between subunits

Discourage strategic planning

Question # 14 of 15 ( Start time: 08:14:34 PM ) Total Marks: 1Alpha company purchased a machine worth Rs 200,000 in the last year.Now that

machine can be use in a new project which company has received this year. Now the costof that machine is to be called:


Project cost


87/875


88/875


89/875

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Agent of his own Company

Paid tax collection agentUnpaid tax collection agent


Question # 9 of 15 ( Start time: 08:32:02 PM ) Total Marks: 1If, Sales = Rs. 800,000 appli Markup = 25% of cost What would be the value of Gross

profit?Select correct option:

Rs. 200,000Rs. 160,000

Rs. 480,000Rs. 640,000

Question # 10 of 15 ( Start time: 08:32:29 PM ) Total Marks: 1Gross pay includes which of the following items?


Basic pay + bonus payOvertime payment + shift allowancesRent and conveyance allowances


Question # 11 of 15 ( Start time: 08:32:38 PM ) Total Marks: 1Which of the following is to be called product cost


Material cost

Labor costFOH cost



Which of the following costs are treated as period costs under direct costing?Select correct option:

Only direct costs

Fixed selling and administrative expensesFixed manufacturing overhead

Both fixed manufacturing overhead and fixed selling and administrative expenses



90/875


91/875

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Below

AboveEqual


Question # 3 of 15 ( Start time: 08:43:54 PM ) Total Marks: 1If one would prepare a graph with a horizontal axis representing units of production and avertical axis representing per-unit production cost, how would a line representing fixed

production cost is drawn?Select correct option:

As a horizontal lineAs a vertical line

As a straight line sloping upward to the rightAs a straight line sloping downward to the right


The difference over the period of time between actual and applied FOH will usually beminimal when the predetermined overhead rate is based on:Select correct option:

Normal capacityDesigned capacityDirect Labor hours

Machine hours


In comparing common cost and joint cost:Select correct option:

The terms can be correctly used interchangeably

Both have the same objective of assigning production cost to cost center

They differ since common cost products or services have been obtained separatelyCommon cost is sometime used as Joint cost


All of the following are essential requirements of a good wage system EXCEPT:Select correct option:

Reduced overhead costs

Reduced per unit variable cost


92/875


93/875

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Budgeted salesBreak Even sales

Margin of safetyContribution margin


Which of the following is a characteristic of process cost accounting system?Select correct option:

Material, Labor and Overheads are accumulated by ordersCompanies use this system if they process custom orders

Opening and Closing stock of work in process are related in terms of completed unitsOnly Closing stock of work in process is restated in terms of completed units

Question # 13 of 15 ( Start time: 08:47:30 PM ) Total Marks: 1FOH applied rate of Rs. 5.60 per machine hour. During the year the FOH to Rs.275,000

and 48,000 machine hours were used. Which one of following statement is correct?Select correct option:


Overhead was under-applied by Rs.7,200

Overhead was over-applied by Rs.7,200


Which of the following is considered as basic systems of remunerating labor?Select correct option:

Time rate systemPiece rate system

Halsey Premium planBoth time rate and piece rate system

Question # 15 of 15 ( Start time: 08:48:01 PM ) Total Marks: 1A company has calculated that volume variance for a given month was unfavorable. Thiscould have been caused by which of the following factors?Select correct option:

The number of rejected units was higher than normal

Machine breakdowns were higher than normalDelays were experienced in the issuing of material to production



94/875


95/875


96/875


97/875


98/875

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