Cost and Management Accounting 29

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Objective Questions and Answers of MBA: Cost and Management Accounting 29

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 29

Part 29: Objective questions and answers of Cost and Management Accounting

 

Q1. Material control aims at achieving effective ______________ management.

a) Marketing

b) Production

c) Organization

d) Material

e) None of these

 

Q2. Interest on own capital is a:

a) Cash cost

b) Notional cost

c) Sunk cost

d) Part of prime cost

 

Q3. Which of the following is not a production cause of idle capacity?

a) Set-up and change-over time

b) Lack of supervision and instruction

c) Lack of materials and tools

d) Strike

 

Q4. Labour cost control embraces the following activities except:

a) Recruitment and promotion

b) Formulation of wage policy and payment and accounting for wages

c) Allocation of cost

d) Preparation of financial statement

 

Q5. Which of the following inventory valuation methods shows higher profits during the period of rising prices?

a) Fifo method.

b) Lifo method.

c) Weighted average method.

d) Simple average method.

 

Q6. Annual requirement is 7800 units; consumption per week is 150 units. Unit price 5, order cost 10 per order. Carrying cost 1 per unit and lead time is 3 week, the economic order quantity would be.

a) 395 units

b) 300 units

c) 250 units

d) 150 units

 

Q7. Which of the following is / are time based incentive wage plan?

a) Hasley premium plan

b) Hasley weir premium plan

c) Rowan premium plan

d) All of the given options

 

Q8. Which of the following is a mechanical device to record the exact time of the workers?

a) Clock card

b) Store card

c) Token system

d) Attendance register

 

Q9. The economic order quantity can be calculated by

a) Formula method

b) Table method

c) Graph method

d) All of the given

 

Q10. How many units would the company have to sell to attain target profits of 600,000?

a) 48,000 units

b) 88,000 units

c) 106,668 units

d) None of given options

 

Q11. If cost of goods sold = 40,000; gp margin = 20% of sales calculate the gross profit margin.

a) 32,000

b) 48,000

c) 8,000

d) 10,000

 

Q12. If time allowed for a job is 10 hours, time taken for the job is 8 hours and rate of pay is 2 per hour, the bonus to the worker is:

a) 1.20

b) 2.00

c) 3.20

d) None of the above

 

Q13. Xyz ltd has the following alternative planned activity levels:

Level a level b level c

Total costs 1,00,000 1,50,000 2,00,000

Number of units produced 5,000 10,000 15,000 (fixed overhead remains constant over the activity range shown.) The fixed overhead cost per unit is:

a) 20.00

b) 15.00

c) 13.33

d) 10.00

 

Q14. Work cost is the total of

a) Direct cost

b) Indirect cost

c) Variable cost

d) Controllable cost

e) Uncontrollable cost

 

Q15. Stores ledger is maintained in the ______________ department.

a) Cost accounting

b) Stores

c) Purchase

d) Production

e) None of these

 

Q16. Normal stores losses are:

a) Part of prime cost

b) Part of production overheads

c) Part of selling and distribution overheads

d) Written-off to costing and profit and loss account

 

Q17. Depreciation is a:

a) Measure of consumption of assets

b) Process of allocation and not of valuation

c) Wear and tear due to use and/or lapse of time

d) All of the above

 

Q18. Productive causes of idle time include the following except:

a) Power failure

b) Fall in demand

c) Machine breakdown

d) Waiting for materials, tools, instructions, etc.

 

Q19. The cost of goods sold is equal to

a) Total purchases – total sales.

b) Opening stock + total purchase.

c) Opening stock – total purchases +closing stock+ direct costs.

d) Opening stock + total purchases – closing stock + direct costs.

 

Q20. The purposes served by preparation of payroll or wages sheet include:

a) Spreading the volume of work to be done

b) Computation of labour rate for each department

c) Comparing actual wages with budgeted wages for control

d) All of the above

 

Part 29: Objective questions and answers of Cost and Management Accounting

 

Q1. Answer d

 

Q2. Answer b

 

Q3. Answer d

 

Q4. Answer d

 

Q5. Answer a

 

Q6. Answer a

 

Q7. Answer d

 

Q8. Answer a

 

Q9. Answer d

 

Q10. Answer a

 

Q11. Answer d

 

Q12. Answer c

 

Q13. Answer d

 

Q14. Answer d

 

Q15. Answer a

 

Q16. Answer b

 

Q17. Answer d

 

Q18. Answer b

 

Q19. Answer d

 

Q20. Answer d

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