Description : Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item ... the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment
Last Answer : Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
Description : Which of the following would explain an adverse variable production overhead efficiency variance? 1. Employees were of a lower skill level than specified in the standard 2. Unexpected idle time resulted from a series of machine breakdown 3. ... b) (1) and (2) (c) (2) and (3) (d) (1) and (3)
Last Answer : (d) (1) and (3)
Description : Labour turnover means: (a) Turnover generated by labour (b) Rate of change in composition of labour force during a specified period (c) Either of the above (d) Both of the above
Last Answer : (b) Rate of change in composition of labour force during a specified period
Description : In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint ... 20,000 (b) Rs. 60,000 (c) Rs. 1,80,000 (d) None of the these
Last Answer : (c) Rs. 1,80,000
Description : A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000
Last Answer : 5,40,000
Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units
Last Answer : (b) 3,000 units
Description : State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units (a) (1) only (b) (1) and (2) only (c) (2) only (d) (2) and (3) only
Last Answer : (b) (1) and (2) only
Description : A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job? (a) Rs 489 (b) Rs 606 (c) Rs 996 (d) Rs 1300
Last Answer : (b) Rs 606
Description : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only
Last Answer : (c) (1) and (3) only
Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease
Last Answer : (a) 10.1% decrease
Description : The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?
Last Answer : (a) Rs 1.20
Description : Service departments costs should be allocated to: (a) Only Service departments (b) Only Production departments (c) Both Production and service departments (d) None of the production and service departments
Last Answer : (c) Both Production and service departments
Description : Overhead refers to: (a) Direct or Prime Cost (b) All Indirect costs (c) only Factory indirect costs
Last Answer : (b) All Indirect costs
Description : Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs
Last Answer : (c) Both of the above
Description : Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs
Last Answer : (b) Not relevant for decision making
Description : How many units must be sold if company wants to achieve a profit of Rs. 11,000 for the year? (a) 2,500 units (b) 9,833 units (c) 10,625 units (d) 13,409 units
Last Answer : (d) 13,409 units
Description : 6. Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are ... have successfully passed the quality control check. The production budget for X for March, in units is:
Last Answer : (d) 16,000
Description : BDL Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its sales budget for the same year shows the following sales values. Rs March 60,000 April 70,000 May 55,000 June 65,000 40% ... 2013 is (a) Rs 60,532 (b) Rs 61,120 (c) Rs 66,532 (d) Rs 86,620
Last Answer : (a) Rs 60,532
Description : A signed undertaking from one party containing a promise to pay a stated sum to a specified person or a company is known as ________ A. Power of Attorney B. Promissory Note C. Purchasing Power Parity D. None of the Above
Last Answer : B. Promissory Note Explanation: A promissory note is a legal instrument in which one party (the maker or issuer) promises in writing to pay a determinate sum of money to the other (the payee)
Description : In responsibility cost accounting the costs in focus are A. Controllable costs B. Uncontrollable costs C. Both a and b D. None of the above
Last Answer : A. Controllable costs
Description : When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is — (a) 20% (b) 30% (c) 25% (d) 40%.
Last Answer : (c) 25%
Description : In element-wise classification of overheads, which one of the following is not included — (a) Fixed overheads (b) Indirect labour (c) Indirect materials (d) Indirect expenditure.
Last Answer : (a) Fixed overheads
Description : Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost ... be:- (a) Rs. 2,500 (b) Rs. 2,000 (c) Rs. 4,000 (d) Rs. 3,500
Last Answer : (a) Rs. 2,500
Description : The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then Break Even Point in Rs. will be (a) Rs. 9,00,000 (b) Rs. 18,00,000 (c) Rs. 5,00,000 (d) None of the above
Last Answer : (b) Rs. 18,00,000
Description : Following information is available of XYZ Limited for quarter ended June, 2013 Fixed cost Rs. 5,00,000 Variable cost Rs. 10 per unit Selling price Rs. 15 per unit Output level 1,50,000 units
Last Answer : (a) Rs. 2,50,000
Description : The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs. 5,000 then profit earned during ... (a) Rs. 5,000 (b) Rs. 55,000 (c) Rs. 15,000 (d) Rs. 65,000
Last Answer : (c) Rs. 15,000
Description : The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge ... a) Rs. 55,000 (b) Rs. 85,000 (c) Rs. 45,000 (d) Rs. 1,85,000
Last Answer : (b) Rs. 85,000
Description : . If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be (a) 30 days (b) 61 days (c) 90 days (d) 120 days
Last Answer : (b) 61 days
Description : For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet of Xerox Limited as under: Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of ... Stock Turnover Ratio will be :- (a) 8 times (b) 6 times (c) 9 times (d) 10 times
Last Answer : (a) 8 times
Description : Statutory cost audit are applicable only to: (a) Firm (b) Company
Last Answer : (b) Company
Description : _________ is also known as working capital ratio. (a) Current ratio (b) Quick ratio ((c) Liquid ratio (d) Debt-equity ratio
Last Answer : (a) Current ratio
Description : ___________ is a summary of all functional budgets in a capsule form. (a) Functional Budget (b) Master Budget (c) Long Period Budget (d) Flexible Budget
Last Answer : (b) Master Budget
Description : A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as: (a) Master budget (b) Zero base budget ((c) Functional budget (d) Flexible budget
Last Answer : (d) Flexible budget
Description : In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. (a) Fixed Cost (b) Variable Cost (c) Total Cost (d) Prime Cost
Last Answer : (b) Variable Cost
Description : The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit. (a) Rs. 145 (b) Rs. 150
Last Answer : (c) Rs. 152
Description : A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of ... (a) 2,81,250 (b) 1,87,500 (c) 5,62,500 (d) None of the above
Last Answer : (c) 5,62,500
Description : After inviting tenders for supply of raw materials, two quotations are received as follows- Supplier P Rs. 2.20 per unit, Supplier Q Rs. 2.10 per unit plus Rs. 2,000 fixed charges irrespective of the units ordered. The ... (a) 22,000 units (b) 20,000 units (c) 21,000 units (d) None of the above.
Last Answer : (b) 20,000 units
Description : Capital gearing ratio is ___________. (a) Market test ratio (b) Long-term solvency ratio (c) Liquid ratio (d) urnover ratio
Last Answer : (b) Long-term solvency ratio
Description : It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? (a) 8,788 units (b) 11,600 units (c) 11,885 units (d) 12,397 units
Last Answer : (c) 11,885 units
Description : What is the company's breakeven point: (a) 8,000 units b) 8,333 units (c) 10,000 units (d) 10,909 units
Last Answer : (d) 10,909 units
Description : A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units
Last Answer : (a) 20%
Description : The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs. 3900 The room servicing cost per occupied room- ... (a) Rs 3.25 (b) Rs 5.00 (c) Rs 97.50 (d) Rs 150.00
Last Answer : (b) Rs 5.00
Description : Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information. Miles travelled 636,500 Tonnes carried 2,479 Number of drivers 20 Hours worked by drivers 35,520 Tonnes miles ... 800 (a) Rs .88 (b) Rs 1.50 (c) Rs 15.84 (d) Rs28, 140
Last Answer : (d) Rs28, 140
Description : Which of the following organisations should not be advised to use service costing? (a) Distribution service (b) Hospital(c) Maintenance division of a manufacturing company (d) A light engineering company
Last Answer : (d) A light engineering company
Description : . A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)? (a) Rs 8.25 (b) Rs 8.80 (c) Rs 11.00 (d) Rs 14.67
Last Answer : (a) Rs 8.25
Description : In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units
Last Answer : (d) Credited with the full production cost of the abnormal loss units
Description : Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs ... 6562.50 (b) Rs. 12,250.00 (c) Rs. 14,437.50 (d) Rs. 25,375.00
Last Answer : (a) Rs 142,485
Description : In process costing, a joint product is (a) a product which is later divided into many parts (b) a product which is produced simultaneously with other products and is of similar value to ... simultaneously with other products but which is of a greater value than any of the other products.
Last Answer : (b) a product which is produced simultaneously with other products and is of similar value to at least one of the other products.
Description : A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order ... 5), (3), (2) (d) (4), (5), (3), (1), (2)
Last Answer : (b) (1), (5), (3), (4), (2)
Description : Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year. 60% 70% 80% Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production ... activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300
Last Answer : (b) Rs 370,300