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Thread: MGT 402 cost quiz latest 23 July 2010

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    Icon51 MGT 402 cost quiz latest 23 July 2010

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    Question # 1 of 15 ( Start time: 06:32:55 PM ) Total Marks: 1

    Differential cost has the behavior of ?

    Select correct option:

    Fixed cost

    Step cost

    Variable/semi avriable cost

    All of the given options



    Question # 2 of 15 ( Start time: 06:34:20 PM ) Total Marks: 1

    All Indirect cost is charged/record in the head of

    Select correct option:

    Prime cost

    FOH cost

    Direct labor cost

    None of the given options

    Question # 3 of 15 ( Start time: 06:35:17 PM ) Total Marks: 1

    Which of the following is / are element / s of production payroll?

    Select correct option:

    Direct labor force wages

    Administrative wages

    Selling wages

    All of the given options

    Question # 4 of 15 ( Start time: 06:36:34 PM ) Total Marks: 1

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

    Select correct option:

    Interest

    Insurance

    Opportunity costs

    All of the given options





    Question # 5 of 15 ( Start time: 06:37:55 PM ) Total Marks: 1

    A company needed to produce 340 liters of chemical “X”. There is a normal loss of 10 %( 40 units) of the material put in to the process during the month. The company produced 340 liters of good production. Although there was an abnormal loss of 5 % of the material put into the process which was 20 units. Find out the number of liters put in to process in the beginning?

    Select correct option:

    400 litres

    340 litres

    300 litres

    200 litres





    Question # 6 of 15 ( Start time: 06:39:17 PM ) Total Marks: 1

    Which of the following costs are treated as period costs under direct costing?

    Select correct option:

    Only direct costs

    Fixed selling and administrative expenses

    Fixed manufacturing overhead

    Both fixed manufacturing overhead and fixed selling and administrative expenses



    Question # 7 of 15 ( Start time: 06:40:36 PM ) Total Marks: 1

    Which of the following would be considered to be an investment centre?

    Select correct option:

    Managers have control over marketing

    Management have a sales team

    Management have a sales team and are given a credit control function

    Managers can purchase capital assets and are given a credit control function





    Question # 8 of 15 ( Start time: 06:41:13 PM ) Total Marks: 1

    The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:

    Select correct option:

    Normal capacity

    Designed capacity

    Direct Labor hours

    Machine hours





    Question # 9 of 15 ( Start time: 06:42:30 PM ) Total Marks: 1

    The Economic order quantity can be calculated by:

    Select correct option:

    Formula Method

    Table Method

    Graph Method

    All of the given





    Question # 10 of 15 ( Start time: 06:42:58 PM ) Total Marks: 1

    Cost of Goods Manufactured can be calculated as follow

    Select correct option:

    Total factory Cost Add Opening Work in process inventory Less Closing Work in process inventory

    Total factory Cost Less Opening Work in process inventory Add Closing Work in process inventory

    Total factory Cost Less Opening Work in process inventory Less Closing Work in process inventory

    Total factory Cost Add Opening Work in process inventory Add Closing Work in process inventory





    Question # 11 of 15 ( Start time: 06:44:08 PM ) Total Marks: 1

    When closing stock is over valuate, what would its effect be on profit?

    Select correct option:

    It will Increase the profit

    It will decrease the profit

    No effect on profit

    Cannot be determined





    Question # 12 of 15 ( Start time: 06:45:19 PM ) Total Marks: 1

    Which of the following items of expense are to be add in FOH cost

    Select correct option:

    Rent of factory + Head office rent + salaries to factory watchman

    Rent of factory + factory lighting bill + Directors salaries

    Rent of factory + factory lighting bill + Factory employees salaries

    Head office rent + Factory property tax + Factory small tools





    Question # 13 of 15 ( Start time: 06:46:05 PM ) Total Marks: 1

    Increase in material Inventory means:

    Select correct option:

    The ending inventory is greater than opening inventory

    The ending inventory is less than opening inventory

    Both ending and opening inventories are equal

    Can not be determined



    Question # 14 of 15 ( Start time: 06:47:07 PM ) Total Marks: 1

    Which of the following is an example of Statutory deductions:

    Select correct option:

    Deduction as Income Tax

    Deduction as social security

    Subscriptions to a trade union

    None of the given





    Question # 15 of 15 ( Start time: 06:48:07 PM ) Total Marks: 1

    Planning for future growth is called:

    Select correct option:

    Capital budgeting

    Working capital management

    Financial forecasting

    Budgeting





    Question # 1 of 15 ( Start time: 12:11:38 PM ) Total Marks: 1
    All of the following are terms used to denote Factory Overheads EXCEPT:
    Select correct option:


    Factory burden
    Factory expenses
    Manufacturing overhead
    Conversion costs

    Question # 2 of 15 ( Start time: 12:12:38 PM ) Total Marks: 1
    Closing work in process Inventory of last year:
    Select correct option:


    Is treated as Opening inventory for current year
    Is not carried forward to next year
    Become expense in the next year
    Charge to Profit & Loss account

    Question # 3 of 15 ( Start time: 12:13:58 PM ) Total Marks: 1
    Under/Over applied FOH cost can be adjusted in which of the following:
    Select correct option:


    Entire Production
    Cost of Good sold
    Net Profit
    All of given options

    Question # 6 of 15 ( Start time: 12:17:34 PM ) Total Marks: 1
    Alpha company purchased a machine worth Rs 200,000 in the last year.Now that machine can be use in a new project which company has received this year. Now the cost of that machine is to be called:
    Select correct option:


    Project cost
    Sunk cost
    Opportunity cost
    Relevant cost

    Question # 7 of 15 ( Start time: 12:18:36 PM ) Total Marks: 1
    Which of the following is a point of differentiation between blanket rates and department rates?
    Select correct option:


    Blanket rate is a single overhead rate established for the entire factory
    Department rates are separate overhead rates for all departments of factory through which the products pass
    Department rate is a single overhead rate established for the entire factory
    Blanket rates are separate overhead rates for all departments of factory through which the product passes

    Question # 8 of 15 ( Start time: 12:19:12 PM ) Total Marks: 1
    A spending variance for factory overhead is the difference between actual factory overhead cost and factory overhead cost that should have been incurred for actual hours worked and results from:
    Select correct option:


    Price difference of FOH costs
    Quantity differences of FOH costs
    Price and quantity differences for FOH costs
    Difference caused by production volume var

    Question # 10 of 15 ( Start time: 12:21:34 PM ) Total Marks: 1
    “Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of:
    Select correct option


    Overstocking
    Under stocking
    Replenishment of stock
    Acquisition of stock

    Question # 11 of 15 ( Start time: 12:22:28 PM ) Total Marks: 1
    When two products are manufactured during a common process, the factor that determine whether the products are joint product or one main product and one is by product is the:
    Select correct option:


    Potential marketability for each product
    Amount of work expended in the production of each product
    Relative total sales value of each product
    Management policy

    Question # 12 of 15 ( Start time: 12:23:57 PM ) Total Marks: 1
    All Indirect cost is charged/record in the head of
    Select correct option:


    Prime cost
    FOH cost
    Direct labor cost
    None of the given options

    Question # 13 of 15 ( Start time: 12:25:23 PM ) Total Marks: 1
    The cost of electricity bill of the factory is treated as:
    Select correct option:


    Fixed cost
    Variable cost
    Step cost
    Semi variable cost

    Question # 14 of 15 ( Start time: 12:26:45 PM ) Total Marks: 1
    In which of the following center FOH cost NOT incurred
    Select correct option:


    Production Center
    Service Center
    General Cost Center
    Head Office

    Question # 15 of 15 ( Start time: 12:28:14 PM ) Total Marks: 1
    If joint products are to be processed further beyond the point of separation, costs should be assigned to the products on the basis of:
    Select correct option:


    Adjusted sales value
    Ultimate sales value
    A physical unit of measure
    An engineering analysis



    Question # 1 of 15 ( Start time: 02:01:15 AM ) Total Marks: 1

    Which of the following is to be called product cost

    Select correct option:



    Material cost

    Labor cost

    FOH cost

    All of the given options



    Question # 2 of 15 ( Start time: 02:01:42 AM ) Total Marks: 1

    Which of the following costing method provide the added benefit of usefulness for external reporting purpose?

    Select correct option:



    Absorption costing

    Marginal costing

    Variable costing

    Neither absorption nor marginal costing



    Question # 3 of 15 ( Start time: 02:03:04 AM ) Total Marks: 1

    A method by which the good used are priced out at average cost is known as:

    Select correct option:



    BCVO

    AVCO

    c.FIFO

    LIFO



    Question # 4 of 15 ( Start time: 02:03:37 AM ) Total Marks: 1

    While calculating the EOQ, number of orders is calculated by:

    Select correct option:



    Multiplying the required units with cost per order

    Dividing required unit by ordered quantity

    Multiplying the required units with ordered quantity

    Multiplying the ordered quantity with cost per order



    Question # 5 of 15 ( Start time: 02:04:10 AM ) Total Marks: 1

    A cost unit is

    Select correct option:



    The cost per hour of operating a machine

    The cost per unit of electricity consumed

    A unit of product or services in relation to which costs are ascertained

    A measure of work output in a standard hour



    Question # 6 of 15 ( Start time: 02:04:54 AM ) Total Marks: 1

    Bouch Company has following the data. Units Produced and sold were100,000 @ 100 each. Production Cost per unit Variable cost is Rs.25, Fixed cost is Rs.50,Total cost is Rs.75 What would be the margin of safety ratio?

    Select correct option:



    25%

    33.333%

    66.666%

    75%



    Question # 7 of 15 ( Start time: 02:06:24 AM ) Total Marks: 1

    Which of the following is the main objective of direct material budget?

    Select correct option:



    Determination of minimum and maximum stock level

    Developing purchasing requirements

    Financial Arrangements

    All of the given options



    Question # 8 of 15 ( Start time: 02:07:51 AM ) Total Marks: 1

    Janet sells a product for Rs.6.25 each. The variable cost is Rs.3.75 per unit. Janet's break-even units are 35,000. What is the amount of fixed costs?

    Select correct option:



    Rs. 87,500

    Rs. 35,000

    Rs. 104,750

    Rs.131,250



    Question # 9 of 15 ( Start time: 02:09:18 AM ) Total Marks: 1

    The appropriate journal entry to transfer the cost of completed units from the Work in Process account would involve a credit to Work in Process and a debit to which of the following accounts?

    Select correct option:



    Income Summary

    Raw Materials Inventory

    Finished Goods

    Manufacturing Summary



    Question # 10 of 15 ( Start time: 02:09:49 AM ) Total Marks: 1

    While constructing production budget, numbers of units manufactured are calculated by which of the following formula?

    Select correct option:



    Number of units to be sold + closing units – opening units

    Number of units to be sold - closing units + opening units

    Number of units to be sold - closing units – opening units

    Number of units to be sold + closing units + opening units



    Question # 11 of 15 ( Start time: 02:11:06 AM ) Total Marks: 1

    The Economic order quantity can be calculated by:

    Select correct option:



    Formula Method

    Table Method

    Graph Method

    All of the given



    Question # 12 of 15 ( Start time: 02:11:30 AM ) Total Marks: 1

    Net sales = Sales less:

    Select correct option:



    Sales returns

    Sales discounts

    Sales returns & allowances

    Sales returns & allowances and sales discounts



    Question # 13 of 15 ( Start time: 02:11:43 AM ) Total Marks: 1

    When closing stock is over valuate, what would its effect be on profit?

    Select correct option:



    It will Increase the profit

    It will decrease the profit

    No effect on profit

    Cannot be determined



    Question # 14 of 15 ( Start time: 02:11:56 AM ) Total Marks: 1

    The flux method of labor turnover denotes:

    Select correct option:



    Workers appointed against the vacancy caused due to discharge or quitting of the organization

    Workers appointed in replacement of existing employees

    Workers employed under the expansion schemes of the company

    The total change in the composition of labor force



    Question # 15 of 15 ( Start time: 02:12:23 AM ) Total Marks: 1

    Which of the following loss is expected in manufacturing process and represents a necessary cost of processing the marketable units?

    Select correct option:



    Operating loss

    Abnormal loss

    Normal loss

    Extraordinary loss



    Question # 1 of 15 ( Start time: 02:44:08 AM ) Total Marks: 1

    Generally, the danger level of stock is fixed ________ the minimum level.

    Select correct option:



    Below

    Above

    Equal

    Danger level has no relation to minimum level



    Question # 2 of 15 ( Start time: 02:45:07 AM ) Total Marks: 1

    Loss by fire is an example of:

    Select correct option:



    Normal Loss

    Abnormal Loss

    Incremental Loss

    Can not be determined



    Question # 3 of 15 ( Start time: 02:45:27 AM ) Total Marks: 1

    A company produces two chemicals in a joint process. Chemical A can be sold at split off while chemical B currently cost Rs. 2 per gallon for disposal. If chemical B is further processed, it would cost Rs. 5 per gallon. At what sales price would the company be in different between disposing of chemical B at split off and further processing the chemical?

    Select correct option:



    Rs.3

    Rs.5

    Rs.4

    Rs.7



    Question # 4 of 15 ( Start time: 02:46:48 AM ) Total Marks: 1

    All of the following are cases of labor turnover EXCEPT:

    Select correct option:



    Workers appointed against the vacancy caused due to discharge or quitting of the organization

    Workers employed under the expansion schemes of the company

    The total change in the composition of labor force

    Workers retrenched



    Question # 5 of 15 ( Start time: 02:47:29 AM ) Total Marks: 1

    Which of the following items of expense are to be add in FOH cost

    Select correct option:



    Rent of factory + Head office rent + salaries to factory watchman

    Rent of factory + factory lighting bill + Directors salaries

    Rent of factory + factory lighting bill + Factory employees salaries

    Head office rent + Factory property tax + Factory small tools



    Question # 6 of 15 ( Start time: 02:47:54 AM ) Total Marks: 1

    Which of the following is the best characteristic of a by product:

    Select correct option:



    Is produced from material that would otherwise be of no value

    Has a lower selling price than the main product

    Is created along with the main product, but its sales value does not cover its production cost

    Usually produces a smaller amount of revenue than the main product



    Question # 7 of 15 ( Start time: 02:48:49 AM ) Total Marks: 1

    Which of the following is considered as basic systems of remunerating labor?

    Select correct option:



    Time rate system

    Piece rate system

    Halsey Premium plan

    Both time rate and piece rate system





    Which of the following element must be taken into account while calculating total earnings of a worker under different incentive wage schemes?

    Select correct option:

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    Rate per unit

    Units of production

    Extra time taken by employee to complete the production

    Number of workers employed



    Question # 9 of 15 ( Start time: 02:50:43 AM ) Total Marks: 1

    Which of the following costing method provide the added benefit of usefulness for external reporting purpose?

    Select correct option:



    Absorption costing

    Marginal costing

    Variable costing

    Neither absorption nor marginal costing





    Question # 10 of 15 ( Start time: 02:51:01 AM ) Total Marks: 1

    Which of the following is the best definition of a by-product?

    Select correct option:



    A by-product is a product arising from a process where the wastage rate is higher than a defined level



    A by-product is a product arising from a process where the sales value is insignificant by comparison with that of the main product or products



    A by-product is a product arising from a process where the wastage rate is unpredictable



    A by-product is a product arising from a process where the sales value is significant by comparison with that of the main product or products





    Question # 11 of 15 ( Start time: 02:51:48 AM ) Total Marks: 1

    Which of the following would be considered to be an investment centre?

    Select correct option:



    Managers have control over marketing

    Management have a sales team

    Management have a sales team and are given a credit control function

    Managers can purchase capital assets and are given a credit control function



    Question # 12 of 15 ( Start time: 02:52:39 AM ) Total Marks: 1

    Jones, Industries uses process costing system. In October, the finishing department had 30,000 units in beginning work-in-process, 45,000 units in ending inventory and had 95,000 units transferred in from the previous department. Material is added at the end of the process and conversion costs are added uniformly throughout the process. Beginning work-in-process was 20% complete with respect to conversion costs; ending inventory was 40% complete with respect to conversion costs. If Jones uses FIFO, the equivalent units of production for transferred-in costs, direct material, and conversion costs are:

    Select correct option:



    Material 125,000 units Conversion cost 98,000 units

    Material 125,000 units Conversion cost 45,000 units

    Material 125,000 units Conversion cost 80,000 units

    None of the given options

    Reference:

    Multiple Choice Quiz

    Question#18



    Question # 13 of 15 ( Start time: 02:53:58 AM ) Total Marks: 1

    Amount of Depreciation on fixed assets will be fixed in nature if calculated under which of the following method?

    Select correct option:



    Straight line method

    Reducing balance method

    Some of years digits methods

    Double declining method



    Question # 14 of 15 ( Start time: 02:55:01 AM ) Total Marks: 1

    Taylor's Differential Piece Rate Plan uses-----------piece rates.

    Select correct option:



    Three

    Two

    Four

    Five



    Question # 15 of 15 ( Start time: 02:56:04 AM ) Total Marks: 1

    Reduction of labor turnover, accidents, spoilage, waste and absenteeism are the results of which of the following wage plan?

    Select correct option:



    Piece rate plan

    Time rate plan

    Differential plan

    Group bonus system







    Question # 3 of 15 ( Start time: 03:03:42 AM ) Total Marks: 1

    Direct material opening inventory add net purchases is called

    Select correct option:



    Material consumed

    Material available for use


    Total material purchsed

    Material ending inventory



    Question # 4 of 15 ( Start time: 03:04:14 AM ) Total Marks: 1

    The Process of cost apportionment is carried out so that:

    Select correct option:



    Cost may be controlled

    Cost unit gather overheads as they pass through cost centers

    Whole items of cost can be charged to cost centers

    Common costs are shared among cost centers



    Question # 5 of 15 ( Start time: 03:04:50 AM ) Total Marks: 1

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

    Select correct option:



    The costs charged to the department

    How the costs were assigned to the output?

    The equivalent units of production by the department

    All of the given options



    Question # 6 of 15 ( Start time: 03:05:18 AM ) Total Marks: 1

    The journal entry of purchse of stock under periodic inventory system would be?

    Select correct option:



    Inventory to Cash

    Cash to Purchases

    Purchses to Inventory

    None of the given options



    Question # 7 of 15 ( Start time: 03:05:42 AM ) Total Marks: 1

    Which of the following is NOT true about job order cost sheets?

    Select correct option:



    Job cost sheets contain direct material costs

    Job cost sheets contain actual amounts of factory overhead

    Job cost sheet does not contain conversion cost

    Job cost sheets contain direct labor costs





    Question # 8 of 15 ( Start time: 03:06:11 AM ) Total Marks: 1

    Which of the following costs is part of the prime cost for manufacturing company?

    Select correct option:



    Cost of transporting raw materials from the suppliers premises

    Wages of factory workers engaged in machine maintenance

    Depreciation of truck used for deliveries to customers

    Cost of indirect production materials



    Question # 9 of 15 ( Start time: 03:06:49 AM ) Total Marks: 1

    Costs which are constant for a relevant range of activity and rise to new constant level once that range exceeded is called:

    Select correct option:



    A fixed cost

    A variable cost

    A mixed cost

    A step cost





    Question # 10 of 15 ( Start time: 03:07:20 AM ) Total Marks: 1

    Factory Over head cost includes

    Select correct option:



    Factory Rent

    Property Tax

    Salaries of Factory Clerk

    All of the given



    Question # 11 of 15 ( Start time: 03:07:49 AM ) Total Marks: 1

    A store ledger card is similar to the ________ .

    Select correct option:



    Stock ledger

    Bin card

    Material card

    Purchase requsition card



    Question # 12 of 15 ( Start time: 03:08:04 AM ) Total Marks: 1

    Where the applied FOH cost is less than the actual FOH cost it is:

    Select correct option:



    Unfavorable variance

    Favorable variance

    Normal variance

    Budgeted variance



    Question # 13 of 15 ( Start time: 03:08:43 AM ) Total Marks: 1

    According to IASB framework, Financial statements exhibit to its users the:

    Select correct option:



    Financial position

    Financial performance

    Cash inflow and outflow analysis

    All of the given options



    Question # 14 of 15 ( Start time: 03:09:04 AM ) Total Marks: 1

    Cost of Goods sold budget include(s) all of the following EXCEPT:

    Select correct option:



    Selling & distribution expenses budget

    General & Administrative expenses budget

    Production cost budget

    Cash budget



    Question # 15 of 15 ( Start time: 03:09:50 AM ) Total Marks: 1

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

    Select correct option:



    Interest

    Insurance

    Opportunity costs

    All of the given options
    Last edited by mobeenaslam; 07-31-2010 at 08:48 PM.

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