Cost and Management Accounting 18

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Objective Questions and Answers of MBA: Cost and Management Accounting 18

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 18

Part 18: Objective questions and answers of Cost and Management Accounting

 

Q1. ______________ obviates the necessity for the physical checking of all items of stores at the end of the year and thereby avoids dislocation of production.

a) Abc analysis

b) Jit inventory system

c) Ved analysis

d) Perpetual inventory system

 

Q2. For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being rs. 2 per hour, total wages payable under rowan premium plan will be ______

a) 40

b) 37.50

c) 35

d) None of these

 

Q3. ______________ Expenses are excluded from cost.

a) Normal

b) Abnormal

c) Both a & b

d) None of these

 

Q4. Material costs of each job are determined from ______________

a) Material requisition notes

b) Bill of materials

c) Both a & b

d) None of these

 

Q5. If the present cost of the car is rs.1,00,000 residual value at the end of the 5th year is rs.20,000, the monthly depreciation is ______________

a) Rs.20,000

b) Rs.16,000

c) Rs.1,333

d) Rs.17,333

 

Q6. ______________ Budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

a) Sales

b) Production

c) Cash

d) Master

 

Q7. The difference between fixed and variable cost has a special significance in the preparation of

a) Flexible budget

b) Master budget

c) Cash budget

d) Sales budget

 

Q8. Material usage variance=material mix variance + ______________

a) Material yield variance

b) Material cost variance

c) Material price variance

d) Material quantity variance

 

Q9. ______________ is the cost which involves payment to outsiders.

a) Out of pocket cost

b) Imputed cost

c) Notional cost

d) None of these

 

Q10. Inventory turnover ratio = cost of inventory consumed during the period ÷ cost of ________ held during the period

a) Average inventory

b) Minimum inventory

c) Maximum inventory

d) None of these

 

Q11. In service costing, fixed charges are also called as ______________

a) Standing charges

b) Variable charges

c) Fixed charges

d) None of these

 

Q12. When the completion stage of the contract is more than half, the profit to be credited to profit and loss account will be equal to ______________

a) 1/3rd of notional profit x cash received work certified

b) ½ of notional profit x cash received work certified

c) 2/3rd of notional profit x cash received work certified

d) Full notional profit.

 

Q13. ______________ is an extension of job costing.

a) Process costing

b) Batch costing

c) Contract costing

d) Operation costing

e) None of these

 

Q14. Re-ordering level is = maximum consumption x ______________

a) Minimum consumption

b) Maximum re-orders period

c) Minimum re-orders period

d) Both (a) and (b)

e) None of these

 

Q15. Bin card is a record of ______________ only.

a) Quality

b) Quanity

c) Numbers

d) Value

e) None

 

Q16. If fixed costs increased by 31,500 with no other cost or revenue factors changing, the break-even sales in units would be:

a) 34,500

b) 80,500

c) 69,000

d) 94,500

 

Q17. The basic research cost should be treated as:

a) Product cost

b) Production cost

c) Production overhead

d) Period cost

 

Q18. If an item of overhead expenditure is charged specifically to a single department this would be an example of:

a) Apportionment

b) Allocation

c) Re-apportionment

d) Absorption

 

Q19. Analysis of selling and distribution overheads is done by:

a) Nature of expenses and functions

b) Areas, products and salesmen

c) Types of customers and channels of distribution

d) All of the above

 

Q20. Obsolescence is the measure of the loss of value of an asset due to:

a) Technological innovation

b) Changes in market conditions

c) Both (a) and (b) above

d) None of the above

 

Part 18: Objective questions and answers of Cost and Management Accounting

 

Q1. Answer d

 

Q2. Answer b

 

Q3. Answer b

 

Q4. Answer c

 

Q5. Answer c

 

Q6. Answer c

 

Q7. Answer a

 

Q8. Answer a

 

Q9. Answer a

 

Q10. Answer a

 

Q11. Answer a

 

Q12. Answer c

 

Q13. Answer b

 

Q14. Answer b

 

Q15. Answer b

 

Q16. Answer b

 

Q17. Answer c

 

Q18. Answer b

 

Q19. Answer d

 

Q20. Answer c

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