Cost and Managment Accounting Mcqs

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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 margin.

a. Rs. 32,000
b. Rs. 48,000
c. Rs. 8,000
d. Rs. 10,000

5).______________ method assumes that the goods received most recently in the stores or produced recently are the first ones to be delivered to the requisitioning department.

a. FIFO
b. Weighted average method
c. Most recent price method
d. LIFO

Fill in the blanks: (5 x 1)

1). Indirect cost that is incurred in producing product or services but which can not traced in full.

2 Sunk cost is the cost that incurred or expended in the past which can not be retrieved.

3). Conversion cost = Direct Labor + FOH

4). If cost of goods sold Rs. 20,000 and Sales Rs. 50,000 then Gross Markup Rate is 150%

5). Under Perpetual system, a complete and continuous record of movement of each inventory item is maintained.

1. Cost of production report is a _________________.

a. Financial statement
b. Production process report
c. Order sheet
d. None of given option.

2. There are ___________ parts of cost of production report.

a. 4
b. 5
c. 6 ( 6th is concerned with calculation of loss)
d. 7

3. Which one of the organization follows the cost of production report _________________?

a. Textile unit
b. Chartered accountant firm
c. Poultry forming
d. None of the given option.

4. _____________________ part of cost of production report explains the cost incurred during the process.

a. Quantity schedule
b. Cost accounted for as follow
c. Cost charge to the department
d. None of given option

Solve the question 5 to 7. If units put in the process 7,000, units completed and transfer out 5,000. Units still in process (100% Material, 50% Conversion cost). 500 units were lost. Cost incurred during the process Material and Labor Rs. 50,000 and 60,000.

5. Find the number of units that will appear in quantity schedule

a. 5,750
b. 7,000
c. 5,000
d. 6,500

6. Find the value of per unit cost of both material and conversion cost

a. Material 7.69; Conversion cost 10.43
b. Material 7.14; Conversion cost 10.43
c. Material 7.14; Conversion cost 9.23
d. None of given option

7. Find the value of cost transferred to next department:

a. Rs. 57,500
b. Rs. 50,000
c. Rs. 70,000
d. None of given option.

8. In case of second department find the increase of per unit cost in case of unit lost. Cost received from previous department is Rs. 1,40,000.

a. 1.43
b. (2.13)
c. 1.54
d. 1.67

9. Opening work in process inventory can be calculated under

a. FIFO and Average costing
b. LIFO and Average costing
c. FIFO and LIFO costing
d. None of given option

10 _________________ needs further processing to improve its marketability.

a. By product
b. Joint Product
c. Augmented product
d. None of the given option

Choose one of the best choices.

1. Jan 1; finished goods inventory of Manuel Company was $3, 00,000. During the year Manuel’s cost of goods sold was $19, 00,000, sales were $2, 000,000 with a 20% gross profit. Calculate cost assigned to the December 31; finished goods inventory.

a. $...
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