Cost and Managment Accounting Mcqs Essay

7131 Words 29 Pages
1). Fixed cost per unit decreases when:

a. Production volume increases. b. Production volume decreases. c. Variable cost per unit decreases. d. Variable cost per unit increases.

2). Prime cost + Factory overhead cost is:

a. Conversion cost. b. Production cost. c. Total cost. d. None of given option.

3). Find the value of purchases if Raw material consumed Rs. 90,000; Opening and closing stock of raw material is Rs. 50,000 and 30,000 respectively.

a. Rs. 10,000 b. Rs. 20,000 c. Rs. 70,000 d. Rs. 1,60,000

4). If Cost of goods sold = Rs. 40,000 GP Margin = 20% of sales Calculate the Gross profit
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Maximize profits. b. Help in inventory valuation c. Provide information to management for decision making d. Aid in the fixation of selling price

3. The combination of direct material and direct labor is

a. Total production Cost b. Prime Cost c. Conversion Cost d. Total manufacturing Cost

4. The cost expended in the past that cannot be retrieved on product or service

a. Relevant Cost b. Sunk Cost c. Product Cost d. Irrelevant Cost

5. When a manufacturing process requires mostly human labor and there are widely varying wage rates among workers, what is probably the most appropriate basis of applying factory costs to work in process?

a. Machine hours
b. Cost of materials used
c. Direct labor hours
d. Direct labor dollars

6. A typical factory overhead cost is:

a. distribution b. internal audit c. compensation of plant manager d. design

7. An industry that would most likely use process costing procedures is:

a. tires b. home construction c. printing d. aircraft e.
8. Complete the following table

| |Per unit |Total |
|Fixed cost |Increase |Constant |
|Variable cost | | |

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