Cost and Management Accounting 27

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Objective Questions and Answers of MBA: Cost and Management Accounting 27

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 27

Part 27: Objective questions and answers of Cost and Management Accounting

 

Q1. The factors to be taken into consideration in formulating incentive schemes include:

a) Quantity and quality of output

b) Incidence of overhead, and effect upon workers

c) Simplicity and legal provisions

d) All of the above

 

Q2. If there has been an over recovery of overheads, at the end of the accounting period the amount concerned should be?

a) Debited to the company profit and loss account.

b) Credited to the company profit and loss account.

c) Carried forward to the next accounting period as a cost saving.

d) Used to reduce next period's overhead recovery rate.

 

Q3. Cost accountancy is the science, art and ______________ of cost accountant.

a) Profession

b) Management

c) Administration

d) Practice

e) All of these

 

Q4. Depreciation is ______________ expenditure.

a) Variable

b) Fixed

c) Direct

d) Indirect

e) Semi-variable

 

Q5. Which of the following is not relevant cost information in a make or buy decision?

a) Variable cost of making

b) General fixed cost

c) Purchase price

d) Loss of contribution to make the product

 

Q6. The firms monthly cost of production is 1,46,000 at an output level of 8,000 units. If it achieves an output level of 12,000 units it will incur production cost of 1,94,000 cost of production for 15,000 units is

a) 1,80,000

b) 2,00,000

c) 50,000

d) 2,30,000

 

Q7. If you know that with 8 units of output, average fixed cost is 12.50 and average variable cost is 81.25, then total cost at this output level is:

a) 93.75.

b) 97.78.

c) 750.

d) 880.

 

Q8. Types of maintenance include the following except:

a) Routine

b) Overhaul

c) Emergency

d) Periodic

 

Q9. Overtime premium may be treated, depending on the circumstances, as:

a) Part of direct wages

b) Part of production overheads

c) Part of capital order

d) All of the above

 

Q10. Cost of production is equal to

a) Prime costs+ other manufacturing costs.

b) Production costs + administration expenses.

c) Prime costs + manufacturing costs + opening w.i.p – closing w.i.p.

d) None of the above.

 

Q11. Non-monetary incentives may include the following except:

a) Health and safety

b) Housing facilities

c) Education and training

d) Dearness allowance

 

Q12. Which of the following is not a production department?

a) Power department

b) Machining department

c) Refining department

d) Finishing department

 

Q13. Which of the following is/are not associated with ordering costs?

a) Interest

b) Insurance

c) Opportunity costs

d) All of the given options

 

Q14. Which of the following is/are reported in production cost report?

a) The costs charged to the department

b) How the costs were assigned to the output?

c) The equivalent units of production by the department

d) All of the given options

 

Q15. Which of the following is not an assumption of the basic economic-order quantity model?

a) Annual demand is known

b) Ordering cost is known

c) Carrying cost is known

d) Quantity discounts are available

 

Q16. The contribution margin ratio is calculated by using which one of the given formula?

a) (sales – fixed expenses)/sales

b) (sales – variable expenses)/sales

c) (sales – total expenses)/sales

d) None of the given options

 

Q17. ______________ 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.

a) Fifo

b) Weighted average method

c) Most recent price method

d) Lifo

 

Q18. Time study serves the following purposes except:

a) Standardizing jobs, operation etc.

b) Assessing labour time

c) Fixation of factory overhead rate

d) Fixation of wage rates and introduction of incentive schemes

 

Q19. Sales commissions are classified as

a) Prime costs

b) Period costs

c) Product costs

d) Indirect labour

 

Q20. In automobile industry cost unit is

a) Number

b) Automobile quality

c) Number of automobile industry

d) Either (a) or (c)

e) None of these

 

Part 27: Objective questions and answers of Cost and Management Accounting

 

Q1. Answer d

 

Q2. Answer b

 

Q3. Answer d

 

Q4. Answer e

 

Q5. Answer b

 

Q6. Answer d

 

Q7. Answer c

 

Q8. Answer b

 

Q9. Answer d

 

Q10. Answer d

 

Q11. Answer d

 

Q12. Answer a

 

Q13. Answer d

 

Q14. Answer d

 

Q15. Answer d

 

Q16. Answer b

 

Q17. Answer d

 

Q18. Answer c

 

Q19. Answer b

 

Q20. Answer b

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