Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Maximum Marks: 100
Time Duration: 3 hours
(Answer Question No.1 which is compulsory
and any two of the rest)
Q.1
Which of these is not an objective of cost accounting?
a)
Ascertainment of cost
b)
Determination of selling price
c)
Cost control and cost reduction
d)
assisting shareholders in decision making
Q.2
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 the year will be:
a)
c)
Rs. 5,000
Rs. 15,000
b)
d)
Rs. 55,000
Rs. 65,000
Q.3
Which of the following method is based on the assumption that, latest consignment of a
materials or goods manufactured are exhausted first and the closing stock is valued at
the cost of earliest lot in hand?
a)
FIFO method
b)
Highest-in-first-out-method
c)
Average cost method
d)
LIFO method
Q.4
Which of the following formula is correct for computation of labour efficiency?
a)
Efficiency % =
Time Taken * 100
Standard Time
b)
Efficiency % =
Standard Output * 100
Actual output
c)
Efficiency % =
Standard Output * 100
Standard Time
d)
Efficiency % =
Standard Time * 100
Time Taken
CIMA, London defines…….. as, “the establishment of budgets, standard costs and
actual costs of operations, processes, activities or products; and the analysis of
variances, profitability or the social use of funds”
a)
Management accounting
b)
Standard costing
c)
Budgetary control
d)
Cost accounting
Q.5
Q.6
1
What will be the impact of normal loss on the overall per unit cost?
a)
Per unit cost will increase
b)
Per unit cost will decrease
c)
Per unit cost remain unchanged
d)
Normal loss has no relation to unit cost
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.7
(Maximum usage-Average Usage)*Lead Time= ?
a)
Re-order point
b)
Danger Level
c)
Safety stock level
d)
Reorder Level
Q.8
In contract costing the ……… provides a safeguard against the default risk in the
contracts.
a)
retention money
b)
reserve
c)
national profit
d)
cash received
Following information related to Question 9-10
Excellent Authomobiles distributes its goods to a regional dealer using single lorry. The
dealer’s premises are 40 km away by road. The lorry has a capacity of 10 tonnes and
makes the journey twice a day fully loaded on the outward journey and empty on return
journey. The lorry operates on a five days in a week. The following information is
available for a four weekly period during the year 2014.
Q.9
Q.10
Q.11
Q.12
Petrol consumption: 8 km per liter
Tonne km =?
a)
3,200 tonne km
c)
16,000 tonne km
Petrol cost for the given period=?
a)
5,200
c)
3,400
b)
d)
b)
d)
1,20,000 tonne km
32,000 tonne km
1,969
4,288
Under …….. of inventory valuation, the historical cost of inventory is estimated by
calculating at selling price and then deducting an amount equal to the estimated gross
margin of profit on such stocks.
a)
Simple average price method
b)
Weighted average price method
c)
Adjusted selling price method
d)
Market price method
Tom Ltd. has sales of Rs. 2,00,000 with variable expenses Rs. 1,50,000. Fixed
expenses Rs. 60,000 and an operating loss of Rs. 10,000. How much would Tom Ltd.
have to increase its sales in order to achieve an operating income of 10% of sales?
a)
Rs. 4,00,000
b)
Rs. 2,51,000
c)
Rs. 2,31,000
d)
Rs. 2,00,000
Q.13
KJ Ltd. PAT is Rs. 1,06,000. Its equity share capital is Rs. 3,50,000 of Rs. 10 each. The
market price is Rs. 45. P/E ratio =?
a)
12.87
b)
15.84
c)
14.85
d)
150
Q.14
Which of the following “Cost unit” is not used by the organization engaged in providing
services?
a)
Tonne km
b)
Passenger km
c)
Kilowatt hour
d)
per meter
2
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Professional Factory..... Costing A series
Q.15
Idle time variance is………
a)
Idle time * actual labour
b)
Idle time * standard rate
c)
Idle time * budgeted labour rate
d)
Idle time * historical cost
Q.16
Opening work-in progress: 2,000 units(100% & 60% complete in respect of material &
conversion costs)
Units introduced : 8,000 units
There are 2,000 units in process. (100% & 50% complete in respect of material &
conversion costs) Output transferred to next process in units =?
a) 10,000 units
b)
12,000 units
(c) 8,000 units
d)
6,000 units
Q.17
31.3.2012
31.3.2013
Prov for tax
70,000
100,000
Advance tax
80,000
105,000
Additional inf: During the year, income tax for year 12-13 was assessed at rs 76000. A
cheque of Rs 4000 was recived towards refund. Effect in CFS isa)
OA +5000
b)
OA -5000
c)
OA – 4000
d)
OA + 4000
Q.18
Blanket overhead rate is ……….
a)
One single overhead absorption rate for the whole factory
b)
Rate which is blank or nil rate
c)
Rate in which multiple overhead rates are calculated for each production
department,
d)
Always a machine hour rate
Q.19
A product is completed in three consecutive processes. Details of normal and abnormal
loss are as follows:
Process
I
II
III
Normal loss units
250
470
215
Abnormal loss units
50
35
Abnormal loss value
300
770
Abnormal gain units
70
Abnormal gain value
840
Scrap value per unit of process I,II&III are Rs. 1, Rs.5 & Rs.6 respectively.
Balance of Abnormal gain A/c to be transferred to costing P&L a/c=?
a) Rs. 490
b)
Rs. 810
c ) Rs. 3,890
d)
Rs. 840
3
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Professional Factory..... Costing A series
Q.20
The actual output was 380 kg and actual material cost was Rs. 13,200. Total actual input
was 415 kg. a standard loss of 5% is expected in production. Standard cost of mixture
is:
35% material A @ Rs. 25 per kg.
65% material B @ Rs. 36 per kg.
Material yield variance =?
a)
482 A
b)
650 A
c)
310 F
d)
340 A
Q.21
The difference between the actual price and the standard price, multiplied by the actual
quantity of materials purchased is the ………
a)
Direct materials spending variance
b)
Direct materials volume variance
c)
Direct materials price variance
d)
Direct materials quantity variance
Q.22
Pre-acquisition dividend received credited to investment A/C is 15000 & 25000. Its
effect on CFS
a)
c)
OA-40,000, IA+ 40,000
OA-40,000
b)
d)
OA-25000, IA=40,000
IA+25000
Q.23
Where the scrap possesses some value as a waste product or as raw material for an
earlier process, the value there of is……….
a)
credited to the process account
b)
debited to the process account
c)
credited to costing P&L a/c
d)
credited to cash & Bank a/c
Q.24
The budgeted sales for the next four quarters are Rs. 192,000, Rs. 2,88,000, Rs.
2,88,000 & Rs. 3,36,000, respectively. It is estimated that sales will be paid for as
follows: 75% of the total will be paid in the quarter that the sales were made. Of the
balance 50% will be paid in the quarter after the sale was made. The remaining 50% will
be paid in the quarter after this. The amount of cash received in quarter 3 will be ……..
a)
Rs. 2,76,000
b)
Rs. 1,44,000
c)
Rs. 3,24,000
d)
Rs. 2,40,000
Q.25
In which of the following cost accounting do not have any role?
a)
Price fixation
b)
Inventory control
c)
Service sector
d)
Price earning
Q.26
Standard production =80 units per week. Actual production= 100 units, Piece rate is Rs.
2 per unit. Earning under Merrick Differential Piece Rate System=?
a)
Rs. 240
b)
Rs. 176
c)
Rs. 204
d)
Rs. 192
4
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.27
Match
1)
2)
3)
4)
a)
b)
c)
d)
Q.28
the following
Test of liquidity
Test of profitability
Test of Solvency
Test of Activity
(1)
(2)
(3)
(A)
(D)
(B)
(D)
(A)
(C)
(B)
(C)
(A)
(C)
(A)
(D)
A.
B.
C.
D.
ROI
Debtors turnover
Acid test ratio
Debt equity ratio
(4)
(C)
(B)
(D)
(B)
K Ltd. has debt-to-total assets 0.4. what is its debt-to-equity ratio?
a)
0.2
b)
0.6
c)
0.667
d)
0.333
Following information related to Question 29-30
A lorry starts with a load of 30 tonnes of goods from station A. It unloads 12 tonnes at
Station B and rest of goods at Station C. It reaches back directly to Station A after
getting reloaded with 24 tonnes of goods at Station C. The distance between A to B, B to
C and then from C to A are 120 km, 180 km, and 240 km respectively.
Q.29
Q.30
Q.31
Compute absolute tones km.
a)
12,690
c)
12,600
b)
d)
12,960
12,060
Compute Commercial tonne km.
a)
12,690
c)
12,600
b)
d)
12,960
12,060
Loss on sale of assets (net) 60 & book value of assets sold is 277 .5 effect on CFS is
a)
c)
IA + 217.5
IA + 277.5
b)
d)
IA + 337.5
IA-60
Q.32
……….. is defined as, “the techniques and process of ascertaining costing”.
a)
Cost Accounting
b)
Management accounting
c)
Costing
d)
Cost Ascertainment
Q.33
Proprietary ratio
[Fixed assets/Proprietary fund]
Current assets
Current liabilities
Fixed assets = ?
a)
3,00,000
c)
1,80,000
5
0.6
Rs. 2,00,000
Rs. 80,000
b)
d)
1,60,000
2,40,000
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.34
A company which uses marginal costing has a profit of Rs. 37,500 for a period. Opening
inventory was 100 units and closing inventory was 350 units. The fixed production
overhead absorption rate is Rs. 4 per unit. What is the profit under absorption costing?
a)
Rs. 35,700
b)
Rs. 35,500
c)
Rs. 38,500
d)
Rs. 39,300
Q.35
In which of the following situation ‘Earnings” under the both methods i.e. Halsey Plan
and Rowan Plan will be the same?
a)
When, Time taken= Time saved
b)
When, Time Saved=Zero
c)
When, Time allowed = Time Taken
d)
All of the above
Q.36
The standard raw material cost for producing one unit of a finished product is Rs.
27.standard raw material usage for every unit of finished product is 3 kg. If 200 units
were produced and Rs. 5,518 was paid for 620 kg of raw material then the direct
material price variance is……..
a)
62 F
b)
72 A
c)
100F
d)
100 A
Q.37
Land & building as on 31.3. 2013 is 255,000 & as on 31.3.2012 is 300,000
A piece of land has been sold during the year & profit on sale has been credited to
capital reserve A/C with rs 7500 account Depreciation changed on building during the
year is rs 7500 effect on OA in CFS for profit on sale will be
a)
c)
OA Nil, IA + 50,000
OA-7500 IA+ 45000
b)
d)
OA+ 7500, IA +45000
IA 7500,OA-7500
Q.38
On 31st March, 2015 profit as per financial accounts is Rs. 50,000. A comparison cost
and financial accounts revealed the following:
Value of opening stock:
In cost accounts
1,65,000
In financial accounts
1,45,000
Value of closing stock:
In cost accounts
1,25,500
In Financial accounts
1,32,000
Profit as per cost accounts=?
a) Rs. 76,500
(b)
Rs. 63,500
(c ) Rs. 36,500
d)
Rs. 23,500
Q.39
SZ Ltd. gives the following information:
Fixed assets
10,50,000
Current assets
9,60,000
Current liabilities
4,00,000
Debentures
4,00,000
Reserve to capital
0.21
Reserve = ?
a)
10,00,000
b)
c)
2,10,000
d)
6
12,10,000
1,10,000
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.40
A hotel has a capacity of 100 single rooms and 20 double rooms. Average occupancy of
both single & double rooms is expected to be 80% throughout the year of 365 days. The
rent for double room has been fixed at 125% of the rent of a single room. Hotel wants to
earns a margin of 20% on rooms rent. Total cost for the year is Rs. 1,34,32,000.
Single room rent per day=?
a)
460
b)
575
c)
550
d)
450
Q.41
Capital gearing ratio
Long term debts
Reserve to capital
Reserve =?
a)
8,00,000
c)
3,00,000
0.625
Rs. 5,00,000
0.6
b)
d)
5,00,000
4,00,000
Q.42
_______ may be defined as the technique of presenting cost data wherein variable costs
and fixed costs are shown separately for managerial decision- making.
a)
Direct costing
b)
Absorption costing
c)
Marginal costing
d)
Variance Analysis
Q.43
According to CIMA, a cost which can be influenced by its budget holder is known as……
a)
Controllable costs
b)
Notional costs
c)
Uncontrollable costs
d)
Fixed costs
Q.44
Cost of work certified =?
a)
contract price –cost of work to date-(cost of work uncertified + material in hand
+Plant at site)
b)
cost of work to date + (cost of work uncertified –Material in hand – Plant at site)
c)
cost of work to date + cost of work uncertified
d)
cost of work to date –(cost of work uncertified + Material in hand + Plant at site)
Q.45
Temporary investments as on 31.3.2012 is 5,50,000 & as on 31.3.2013 is 3,70,000.
Investments were sold at book value. Effect on CFS is
a) FA + 180,000
c) OA + 180,000
b) OA + 370,000
d) IA + 180,000
Q.46
Normal rate per hour= Rs. 100, Expected output =25 units per hour, Actual production in
8-hour day= 180 units.
Earning under piece rate system=?
a) Rs. 800
b)
Rs. 45
c) Rs. 745
d)
Rs. 720
Q.47
SS Ltd. has normal monthly machine hour capacity of 100 machines working 8 hours per
day for 25 working days in a month. The budgeted fixed over head is Rs. 1,50,000. The
actual production was 4,500 units. The actual fixed overheads was Rs. 1,60,000.
Expenditure Variance=?
a)
15,000A
b)
10,000A
c)
10,000F
d)
9,000A
7
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Professional Factory..... Costing A series
Q.48
The cost audit order can be given by the Central Government only in respect of Class of
Companies which is required to maintain books of account under the provisions of ……..
of the companies Act, 2013.
a)
Section 148
b)
Section 138
c)
Section 209(1)(d)
d)
Section 128
Q.49
No profit on uncompleted contracts is taken to profit and loss account, if the value of
work in progress is less than……… of contract price.
a)
1/3rd
b)
50%
c)
25%
d)
1/5th
Q.50
Which of the following is not a method of costing?
a)
Marginal costing
b)
Job costing
c)
Process costing
d)
Operating costing
Q.51
Following data pertains to Process II.
Output of Process I = Rs. 28,200(4,700units)
Normal loss = 10% of input
Scrap value per unit = Rs. 5
Direct wages = Rs. 5,000
Direct expenses = Rs. 9,910
Overheads are Rs. 32,000 in total and chargeable as 200% of direct wages.
Output of process II= 4300 units
Value of Abnormal gain of Process II =?
a) Rs. 770
b)
Rs. 480
c)
Rs. 840
d)
Rs. 560
Q.52
Find out the figure from the following data.
Input
SO
AQ
Material A
140
130
Material B
160
285
Total material price variance was 310 F.
a)
43
b)
c)
40
d)
SP
25
36
AP
27
?
34
38
Q.53
Which of the following details are recorded in bin card?
a)
Date of order and suppliers name along with address
b)
Record of quantities only
c)
Record of both quantities & values
d)
All of the above
Following information related to Question 54-57
2 hours allowed to a worker to produce 5 units and wages has been paid @ Rs. 25 per
hour. In a 48 hours week the worker produced 170 units.
Q.54
8
Earning as per Halsey 50% system=?
a)
Rs. 1,450
b)
c)
Rs. 1,940
d)
Rs. 1,553
Rs. 1,428.29
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.55
Q.56
Q.57
Q.58
Earning as per Barth system=?
a)
Rs. 1,450
c)
Rs. 1,940
b)
d)
Rs. 1,553
Rs. 1,428.29
Earning as per Emerson’s Plan=?
a)
Rs. 1,450
c)
Rs. 1,940
b)
d)
Rs. 1,553
Rs. 1,428.29
Earning as per Rowan system=?
a)
Rs. 1,450
c)
Rs. 1,940
b)
d)
Rs. 1,553
Rs. 1,428.29
Book value of furniture sold is rs 5000 Depreciation on furniture for the year. Is 8500 and
loss on sale of furniture is 2000 debited to P&L A/C . Calculate the effect of transaction
on CFS. Opening balance of furniture 90,000, closing balance= 76500
a)
OA + 10500, IA+ 3000
b)
FA-5000, OA + 3000
c)
OA + 2000, IA+ 5000
d)
OA -10500 IA – 3000
Q.59
For contracts which are very near to completion, the profit is ascertained by the
formula……
a)
Estimated profit * (work certified / contract price)
b)
Estimated profit * (work certified / contract price) * (cash received/ work certified)
c)
Estimated profit * (Cash received /work certified) * (cost of work /Total cost of
date)
d)
Any of the above in the absence of specific instruction
Q.60
_________ is form of specific order costing which applies where work is undertaken per
customer’s specific requirement.
a)
Batch costing
b)
Operation costing
c)
Job costing
d)
Composite costing
Q.61
A method of allocating joint costs that uses volume would be the ……….
a)
sales value at the split-off point
b)
net realizable value method
c)
physical measure method
d)
constant gross margin method
Q.62
Explain the important ratio that would be used in following situation:
A bank is approached by a company for a loan of Rs. 50 lakh for working capital
purposes.
a)
capital structure/leverage ratios
b)
profitability ratios
c)
liquidity ratios
d)
activity ratios
9
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Professional Factory..... Costing A series
Q.63
If material price variance is zero then which of the following two variance will be same?
a)
material cost variance & Material usage variance
b)
(a) &(d)
c)
material usage variance & material Mix variance
d)
material sub-usage variance & material yield variance
Q.64
Debenture were redeemed at the beginning of the year 8% debenture as on 1.4.2012 is
300,000 & on 31.3. 2013 is 100,000. Calculate the effect of interest on debentures in
CFS.
a)
c)
OA +24000, FA-24000
OA+ 8000 , FA-8000
b)
d)
OA + 16000 IA -16000
OA -16000 FA +16000
Q.65
Total cost up to date = Rs. 1,50,100
Further estimated cost = Rs. 1,86,475
Contract price = Rs. 4,00,000
Provisions of 2.5% of total cost has to be made for temporary maintenance &
contingencies. Cash received on account was Rs. 1,40,000 representing 80% of the
work certified.
It was decided to take credit of the profit and loss account that proportion of the total
which correspond to the work certified.
Profit to be considered on contract=?
a) Rs. 24,067
b)
Rs. 55,011
c ) Rs. 19,253
d)
Rs. 29,339
Q.66
Contract in which reimbursement is based on actual allowable cost plus as fixed fees is
called………..
a)
special contract
b)
cost plus contract
c)
Regular contract
d)
cost contract
Q.67
The method of applying the same basic costing methods, principles, and techniques to
several undertakings that are in the same industry, trade association or group is known
as………
a)
standard costing
b)
Process costing
c)
Uniform costing
d)
Absorption costing
Q.68
From the information given below calculate the amount of fixed assets.
Fixed assets to proprietors fund
0.75
Net working capital
Rs. 6,00,000
a)
17,50,000
b)
18,00,000
c)
17,00,000
d)
18,50,000
Q.69
Maximum Level = 6,832 units, Re-order level = 6,000 units, Minimum usage= 250 units,
Minimum delivery period = 5 weeks. EOQ/Re-order quantity =?
a)
2,082 units
b)
4,791 units
c)
3,791 units
d)
2,750 units
10
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Professional Factory..... Costing A series
Q.70
Factory overheads of good-luck Ltd. at 55% capacity are Rs. 3,10,000 and at 755
capacity Rs. 3,50,000 for the current year. The following increases in cost are expected
in next year:
Variable factory overheads
5%
Fixed factory overheads
10%
What will be the factory overheads if factory works at 85% capacity next year?
a)
3,98,500
b)
2,98,500
c)
5,98,200
d)
3,48,250
Q.71
Z Ltd. using WAC method gives the following particulars for Process A:
Work-in-progress opening balance on :500 units (100% & 60% complete in respect of
material & conversion costs)
Units introduced: 19,500 units
Normal loss = 5% of total input
Units scrapped = 1,400 units,
Work-in process closing balance = 400 units. (100% & 50% complete in respect of
material & conversion costs)
Equivalent units in respect of conversion cost=?
a)
20,000 units
b)
19,000 units
c)
18,200 units
d)
18,800 units
Q.72
Cost accounting system can be installed without management accounting.
a)
False
b)
True
c)
Partly incorrect
d)
None of the above
Q.73
Two products P and Q are obtained in a crude form and required further processing at a
cost of Rs. 5 for P and Rs. 4 Q per unit before sale. Assuming a net margin of 25% on
cost, their sale prices are fixed at Rs. 13.75 and Rs. 8.75 per unit respectively. During
the period, the joint cost was Rs. 88,000 and the outputs were: P-8,000 units, Q-6,000
units. NRV method is adopted to allocate joint cost.
Joint cost per unit of P & Q =?
a)
Rs. 4 &Rs.8
b)
Rs.13 & Rs.8
c)
Rs. 8 & Rs. 4
d)
Rs. 8 & Rs. 5
Q.74
N Ltd. gives the following information:
Current ratio
2.8
Total assets
Rs. 60,00,000
Fixed assets
Rs. 32,00,000
Current liabilities
=?
a)
28,00,000
b)
10,00,000
c)
18,00,000
d)
12,00,000
Q.75
……… is basically recording the details of work done and the time spent by workers on
each job or process.
a)
Time keeping
b)
time booking
c)
Time spending
d)
Idle time register
11
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Professional Factory..... Costing A series
Q.76
Which of the following costs are not relevant for special decisions?
a)
avoidable costs
b)
incremental cost
c)
sunk cost
d)
marginal cost
Q.77
In costing an account giving details of cost of production, cost of sales and profit made
during a particular period is called………
a)
Cost sheet
b)
Income statement
c)
Production account
d)
Goods Produced account
Q.78
Recent budget prepared by G Ltd. show that in section cost is Rs. 5,000 at a capacity
level of 2,500 units out of which 25% is semi-variable. What will be inspection cost at
1,750 level of activity?
a)
6,125
b)
4,625
c)
3,875
d)
3,625
Q.79
The model and formula of EOQ was developed by ………. In 1913.
a)
F.W.Taylor
b)
F.Wilson Harris
c)
F.Walter Harris
d)
F.W.Marshall
Q.80
J sell a product for Rs. 6.25. the variable costs are Rs. 3.75. J’s break-even units are
35,000. What is the amount of fixed costs?
a)
Rs. 87,500
b)
Rs. 35,000
c)
Rs. 1,31,250
d)
Rs. 1,04,75
Q.81
Standard costing is ………
a)
Costing method
c)
costing classification
b)
d)
Costing technique
costing absoption
Q.82
……… are those items, which are moving at a slow rate and this may arise due to
general depression in demand due to keen competition.
a)
Dormant stocks
b)
Written –off stocks
c)
Slow moving stocks
d)
any of the above
Q.83
Normally delivery takes place in 6 days, 3 day stock will be safety stock. Average
consumption per day 150 units. Minimum consumption per day is 75 units. Re-order
Point=?
a)
1,125 units
b)
675 units
c)
900 units
d)
1,350 units
Q.84
The dividend payout ratio describes:…….
a)
The proportion of earnings paid as dividends
b)
The relationship of dividends per share to market price per share
c)
The percentage change in dividends this year compared to last year
d)
Dividends as a percentage of the price/earning ratio
Q.85
Calculate ROL, when usage = 50 units -150 units per month. Lead time= 4-6weeks.
a)
207
b)
900
c)
300
d)
600
12
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.86
Equivalent cost per unit for material = Rs. 10.75 per unit.
Equivalent units = 10,000
Current cost of material = Rs. 1,00,000
Cost of material in opening WIP= Rs ?
a)
Rs. 8,000
b)
Rs. 7,500
c)
Rs. 9,000
d)
Rs. 10,750
Q.87
In marginal costing stock are valued at……..
a)
fixed cost
b)
Semi variable cost
c)
variable cost
d)
Market price
Q.88
Costs of direct material, direct labour and direct expenses can be directly allocated or
indentified with a particular cost centres or a cost unit are the examples of ……..
a)
Common costs
b)
Indirect costs
c)
Differential costs
d)
Traceable costs
Q.89
In ‘make or buy’ decisions, it is profitable to buy from outside only when the suppliers
price is below the firm’s own……….
a)
Variable cost
b)
fixed cost
c)
Variable plus fixed cost
d)
identifiable cost
Q.90
The total cost for producing 10 items is Rs. 15 and that for producing 15 items is Rs. 20.
What is the fixed cost?
a)
Rs. 10
b)
Rs. 15
c)
Rs. 5
d)
none of the above
Q.91
On 31st March, 2015 profit as per financial accounts is Rs. 1,47,458. A Comparison cost
and financial accounts revealed the following:
Works overhead recovered in cost accounts amounted to Rs. 28,450 while the actual
amount of these expenses was Rs. 21,390 only.
Actual office expenses for the period were Rs. 19,850, whereas the office overhead
recovered in cost accounts amounted to Rs. 14,500.
Profit as per cost accounts=?
a) Rs. 1,35,048
b)
Rs. 1,59,868
(c) Rs. 1,49,168
d)
Rs. 1,45,748
Q.92
Joint cost are allocated to which of the following products?
By-product
Scrap
a)
Yes
Yes
b)
Yes
No
c)
No
No
d)
No
Yes
Q.93
A company makes a single product which it sells for Rs. 2 per unit. Fixed costs are Rs.
13,000 per month. The contribution / sales ratio is 40%. Sales revenue is Rs. 62,500.
What is the margin of safety (in units)?
a)
15,000
b)
16,250
c)
30,000
d)
31,250
13
Chinmay Tutorials [9929277130/0141-2741111]
Professional Factory..... Costing A series
Q.94
G Ltd. has total current liabilities of Rs. 2,000 and an inventory of Rs. 1,000. If its current
ratio is 2.5, then what is its quick ratio?
a)
2.0
b)
2.5
c)
3.0
d)
3.5
Q.95
Which of the following budgets should be produced first?
a)
production budget
b)
purchases budget
c)
master budget
d)
sales budget
Q.96
A favourable variance occurs when……..
a)
actual costs are less than static costs
b)
standard costs are less than actual costs
c)
standard cost are less than static costs
d)
actual costs are less than standard costs
Q.97
Absorption costing is also called:………
a)
variable costing
b)
c)
marginal costing
d)
Q.98
Q.99
Total costing
Activity based costing
Material Usage Variance = Material Mix variance + ………..
a)
material Yield Variance
b)
Material cost variance
c)
Material Price variance
d)
Material Quantity variance
……… represents the unusable loss, which can be sold. It is a residue, which is
measurable and has a minor value.
a)
Waste
b)
Scrap
c)
Spoilage
d)
Defective
Q.100 NS Ltd gives the following information :
Current ratio
2.4
Quick ratio
1.0
Stock
Rs. 5,60,000
Current assets =?
a)
9,60,000
b)
6,90,000
c)
4,00,000
d)
4,60,000
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