Cost and Management Accounting 28

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Objective Questions and Answers of MBA: Cost and Management Accounting 28

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 28

Part 28: Objective questions and answers of Cost and Management Accounting

 

Q1. Out of pocket payment involves payment to

a) Managers

b) Promoters

c) Directors

d) Shareholders

e) Outsiders

 

Q2. Raymond corporation estimates factory overhead of 345,000 for next fiscal year. It is estimated that 60,000 units will be produced at a material cost of 575,000. Conversion will require 34,500 direct labor hours at a cost of 10 per hour, with 25,875 machine hours. Foh rate on the bases on budgeted production would be?

a) 5.75 per unit

b) 6.65 per unit

c) 6.0 per unit

d) 1 per unit

 

Q3. Which of the following is/are the basic object/s of job analysis?

a) Determination of wage rates

b) Ascertain the relative worth of each job

c) Breaking up job into its basic elements

d) All of the given options

 

Q4. The unavoidable causes of labour turnover include the following except:

a) Personal betterment

b) Dissatisfaction with the job

c) Illness

d) Retirement

 

Q5. Group bonus schemes are generally suitable where:

a) Output depends on individual efforts

b) Output of individual workers can be measured easily

c) It is necessary to create a collective interest in the work

d) Normal loss rate is high

 

Q6. Some overhead charges tend to vary almost directly, some tend to remain constant while some again vary in part with the volume and in part remain constant. This statement describes sequentially the following:

a) Variable, fixed and semi-variable overheads

b) Fixed, semi-variable and variable overheads

c) Semi-variable, variable and fixed overheads

d) Variable, semi-variable and fixed overheads

 

Q7. A method of dealing with overheads involves spreading common costs over cost centres on the basis of benefit received. This is known as

a) Overhead absorption

b) Overhead apportionment

c) Overhead identification

d) Overhead analysis

 

Q8. The short run is a time period in which:

a) All resources are fixed.

b) The level of output is fixed.

c) The size of the production plant is variable.

d) Some resources are fixed and others are variable

 

Q9. When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin/profits?

a) Fifo

b) Lifo

c) Weighted average

d) Cannot be determined

 

Q10. If, cogs = 50,000 gp margin = 25% of sales what will be the value of sales?

a) 200,000

b) 66,667

c) 62,500

d) None of the given options

 

Q11. While preparing the cost of goods sold and income statement, the over applied foh is;

a) Add back, subtracted

b) Subtracted, add back

c) Add back, add back

d) Subtracted, subtracted

 

Q12. Percentage of margin of safety can be calculated in which one of the following ways?

a) Based on budgeted sales

b) Using budget profit

c) Using profit & contribution ratio

d) All of the given options

 

Q13. The difference between gate time and time booked for jobs in respect of a worker in due to the following reasons except:

a) Change-over time

b) Illness

c) Waiting for materials, instructions, etc.

d) Breakdown of machine

 

Q14. The authorized heads of deduction from wages payable include the following except:

a) Car allowance

b) Income tax

c) Provident fund

d) Employees'state insurance

 

Q15. Cost unit in a college may be

a) Teacher

b) Non teacher staff

c) Student

d) Number of departments

e) None of these

 

Q16. ______________ represents that quantity of material which is normally ordered when a particular material reaches the ordering level.

a) Eoq

b) Boq

c) Ebq

d) Re-order period

e) All of these

 

Q17. About 50 items are required every day for a machine. A fixed cost of 50 per order is incurred for placing an order. The inventory carrying cost per item amounts to re. 0.02 per day. The lead period is 32 days. Compute reorder level.

a) 1,200 items

b) 1,400 items

c) 1,600 items

d) 1,800 items

 

Q18. Regular maintenance expenses are:

a) Capitalized

b) Part of manufacturing overheads

c) Written-off to costing profit and loss account

d) Part of prime cost

 

Q19. At the start of the quarter there were 14,630 workers. 750 employees left during the quarter while 600 joined the organization during the same period. Using the flux method, the labour turnover was:

a) 5.13%

b) 9.23%

c) 9.32%

d) 9.28%

 

Q20. Favorable conditions for the operation of piece rates include:

a) Homogeneous products

b) Long, uninterrupted run of production

c) Inspection

d) High proportion of indirect labour

 

Part 28: Objective questions and answers of Cost and Management Accounting

 

Q1. Answer e

 

Q2. Answer a

 

Q3. Answer b

 

Q4. Answer b

 

Q5. Answer c

 

Q6. Answer a

 

Q7. Answer b

 

Q8. Answer d

 

Q9. Answer b

 

Q10. Answer b

 

Q11. Answer b

 

Q12. Answer d

 

Q13. Answer b

 

Q14. Answer a

 

Q15. Answer c

 

Q16. Answer d

 

Q17. Answer c

 

Q18. Answer b

 

Q19. Answer d

 

Q20. Answer b

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