Question No: 1 ( Marks: 1 ) - Please choose one
Cost of incoming freight on merchandise to be sold to customers by a retail chain would be considered by that merchandiser to be:
► Prime costs
► Inventoriable costs
► Period costs
► None of the given options

Question No: 2 ( Marks: 1 ) - Please choose one
Net sales = Sales less:
► Sales returns
► Sales discounts
► Sales returns & allowances
► Sales returns & allowances and sales discounts

Question No: 3 ( Marks: 1 ) - Please choose one
Cost accounting concepts include all of the following EXCEPT:
► Planning
► Controlling
► Sharing
► Costing

Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following is a cost that changes in proportion to changes in volume?

► Fixed cost
► Sunk cost
► Opportunity cost
► None of the given options

Question No: 5 ( Marks: 1 ) - Please choose one
Finished goods inventory costs represent the costs of goods that are:
► Currently being worked on
► Waiting to be worked on
► Waiting to be sold
► Already delivered to customers

Question No: 6 ( Marks: 1 ) - Please choose one
According to IASB framework, Financial statements exhibit its users the:
► Financial position
► Financial performance
► Cash inflow and outflow analysis
► All of the given options

Question No: 7 ( Marks: 1 ) - Please choose one
If, COGS = Rs. 50,000
GP Margin = 25% of sales
What will be the value of Sales?
► Rs. 200,000
► Rs. 66,667
► Rs. 62,500
► Rs. 400,000

Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is correct?
► Units sold= Opening finished goods units + Units produced Closing finished goods units
► Units Sold = Units produced + Closing finished goods units - Opening finished goods units
► Units sold = Sales + Average units of finished goods inventory
► Units sold = Sales - Average units of finished goods inventory

Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following would be the effect, if inventory is not properly measured?
► Expenses and revenues cannot be properly matched
► Unfair position in Financial Statements
► Inventory items show under or over stocking
► All of the given options

Question No: 10 ( Marks: 1 ) - Please choose one
If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units?
► 2,592 units
► 25,920 units
► 18,720 units
► 129,600 units

Question No: 11 ( Marks: 1 ) - Please choose one
Basic pay + bonus pay + overtime payment is called:
► Net pay
► Gross pay
► Take home pay
► All of the given options

Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is a reason for the overtime to be incurred?
► Make up for lost time
► Produce more of the product than anticipated
► Increase efficiency of the workers
► Both for make up of lost time and produced more product than anticipated

Question No: 13 ( Marks: 1 ) - Please choose one
Where there is mass production of homogeneous units or where few products are produced in batches, which of the following cost driver would be regarded as best base for the determination of Factory overhead absorption rate?
► Number of units produced
► Labor hours
► Prime cost
► Machine hours

Question No: 14 ( Marks: 1 ) - Please choose one
The Process of cost apportionment is carried out so that:

► 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 No: 15 ( Marks: 1 ) - Please choose one
Nelson Company has following FOH detail.
Budgeted (Rs.) Actual (Rs.)
Production Fixed overheads 36,000 39,000
Production Variable overheads 9,000 12,000
Direct labor hours 18,000 20,000

What would be the amount of under/over applied FOH

► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000

Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following would be considered a major aim of a job order costing system?
► To determine the costs of producing each job
► To compute the cost per unit
► To include separate records for each job to track the costs
► All of the given options

Question No: 17 ( Marks: 1 ) - Please choose one
At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT:
► Number of units in the beginning work in process
► Number of units sold
► Number of units in the ending work in process and their estimated stage of completion
► Number of units completed

Question No: 18 ( Marks: 1 ) - Please choose one
LG has incurred cost of Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost for material?
► Rs. 22
► Rs. 16
► Rs. 14
► Rs. 8

Question No: 19 ( Marks: 1 ) - Please choose one
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
► Work in Process Department A and a credit to Work in Process Department B
► Work in Process Department B and a credit to Work in Process Department A
► Work in Process Department B and a credit to Materials
► Finished Goods and a credit to Work in Process Department B

Question No: 20 ( Marks: 1 ) - Please choose one
FIFO is the abbreviation of:
► Final Interest-Free Option
► First in First out Method
► None of the given options
► Fixed income Financial Operations

Question No: 21 ( Marks: 1 ) - Please choose one
A company applied overheads on machine hours which were budgeted at 11,250 with overhead of Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692. Overhead were?

► Over applied by Rs.4, 058
► Under applied by Rs.2, 152
► Under applied by Rs.4, 058
► Over applied by Rs.2, 152

Question No: 22 ( Marks: 1 ) - Please choose one
Which of the given cost does not become the part of cost unit?
► Advertising expenses
► Direct labor cost
► Factory overhead cost
► Cost of raw material

Question No: 23 ( Marks: 1 ) - Please choose one
Imputed cost is also called
► Explicit cost
► Implicit cost
► Firm cost
► Period cost

Question No: 24 ( Marks: 1 ) - Please choose one
The journal entry of Material purchase on credit under perpetual inventory system is:



► Inventory account (Dr) Material account (Cr)
► Account payable (Dr.) Purchases account (Cr)
► Inventory account (Dr) Account payable account (Cr)
► Purchases account (Dr) Accounts payable account (Cr)

Question No: 25 ( Marks: 1 ) - Please choose one
The annual demand for a stock item is 2,500 units. The cost of placing an order is Rs. 80 and the cost holding an item in stock is for one year is Rs. 15.
Required: What is the EOQ?
► 163 units
► 1250 units
► 5,000 units
► 160 units

Question No: 26 ( Marks: 1 ) - Please choose one
Working hours of labor can be calculated with the help of all EXCEPT:




► Smart card
► Time sheet
► Store card
► Clock card

Question No: 27 ( Marks: 1 ) - Please choose one
Inventory of Rs. 96,000 was purchased during the year. The cost of goods sold was Rs. 90,000 and the ending inventory was Rs. 18,000. What was the inventory turnover ratio for the year?
► 5.0 times
► 5.3 times
► 6.0 times
► 6.4 times

Question No: 28 ( Marks: 1 ) - Please choose one
Gross pay ____________ =Effective wage rate
► Actual hours worked
► Time allowed
► Time saved
► None of the given options

Question No: 29 ( Marks: 1 ) - Please choose one
Which of the given statement is CORRECT for factory overhead cost?




► It is direct production cost.
► It is prime cost.
► It is conversion cost.
► It is an indirect production cost.

Question No: 30 ( Marks: 1 ) - Please choose one
Depreciation of building expense is an example of factory overhead which is apportioned on the basis of:




► Capital value
► Departmental payroll
► Area in square feet or cubic feet
► Number of workers

Question No: 31 ( Marks: 1 ) - Please choose one
Budgeted fixed factory overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 30,000 and variable rate Rs. 8.00 per hour.
Required:
Identify the amount of Budgeted Factory overhead.
► Rs. 10,000
► Rs. 5, 000
► Rs. 70,000
► Rs. 3,750

Question No: 32 ( Marks: 1 ) - Please choose one
Cost of production report summarizes data of:

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► Quantities produced by producing department only
► Cost incurred by producing department only
► Quality of purchased units only
► Quantities produced and Cost incurred by producing department

Question No: 33 ( Marks: 1 ) - Please choose one
Production process may result into spoiled or lost units. This lost unit may result into which of the following category/categories?




► Normal loss
► Abnormal loss
► Unavoidable loss
► All of the given options

Question No: 34 ( Marks: 1 ) - Please choose one
It is assumed that Rs. 1,000 incurred to produce 100 units but after inspection it came to know that 10 units were lost. Then Rs. 1,000 will be spread over:



► 10 units
► 100 units
► 90 units
► 110 units

Question No: 35 ( Marks: 3 )
What is the justification of spreading the cost of lost units over the remaining goods units?

Question No: 36 ( Marks: 5 )
The higher rate of labor turnover results in increased cost of production. Discuss the Effect of Labor Turnover.


Question No: 37 ( Marks: 5 )
PA limited operates a job costing system. The company standard sale price is predetermined Rs. 505 based on cost plus 20% profit margin. The estimated cost for Job # 141 is as follows:

Direct material 5 meters@ Rs.20 per meter
Direct labor 14 hours@ Rs. 8.00 per hour

Production overhead for the year are budgeted to be Rs.200,000 and are to be recovered on the basis of the total 40,000 direct labor hour for the year.
Required:
v Calculate Cost of Goods Sold for job # 141
v Calculate amount of profit for job #141