Q#1: Cost of incoming freight on merchandise is considered as:
(A) Prime costs
(B) Inventoriable costs
(C) Period costs
(D) None of the given options
Answer: (B) Inventoriable costs
Q#2: Net sales = Sales less:
(A) Sales returns
(B) Sales discounts
(C) Sales returns & allowances
(D) Sales returns & allowances and sales discounts
Answer: (D) Sales returns & allowances and sales discounts
Q#3: Cost accounting concepts include all EXCEPT:
(A) Planning
(B) Controlling
(C) Sharing
(D) Costing
Answer: (C) Sharing
Q#4: Cost that changes in proportion to volume:
(A) Fixed cost
(B) Sunk cost
(C) Opportunity cost
(D) None of the given options
Answer: (D) None of the given options
Q#5: Finished goods inventory represents goods:
(A) Being worked on
(B) Waiting to be worked on
(C) Waiting to be sold
(D) Delivered to customers
Answer: (C) Waiting to be sold
Q#6: IASB framework financial statements show:
(A) Financial position
(B) Financial performance
(C) Cash flows
(D) All of the given options
Answer: (D) All of the given options
Q#7: If COGS = Rs. 50,000 and GP margin = 25% of sales, sales are:
(A) Rs. 200,000
(B) Rs. 66,667
(C) Rs. 62,500
(D) Rs. 400,000
Answer: (B) Rs. 66,667
Q#8: Correct formula for units sold:
(A) Opening + Produced – Closing
(B) Produced + Closing – Opening
(C) Sales + Avg inventory
(D) Sales – Avg inventory
Answer: (A) Opening + Produced – Closing
Q#9: Improper inventory measurement causes:
(A) Mismatch of expenses & revenue
(B) Unfair financial statements
(C) Over/under stocking
(D) All of the given options
Answer: (D) All of the given options
Q#10: EOQ usage units =
(A) 2,592 units
(B) 25,920 units
(C) 18,720 units
(D) 129,600 units
Answer: (B) 25,920 units
Q#11: Basic pay + bonus + overtime =
(A) Net pay
(B) Gross pay
(C) Take home pay
(D) All of the given options
Answer: (B) Gross pay
Q#12: Overtime is incurred due to:
(A) Make up lost time
(B) Extra production
(C) Efficiency increase
(D) Both A and B
Answer: (D) Both A and B
Q#13: Best FOH absorption base in mass production:
(A) Units produced
(B) Labour hours
(C) Prime cost
(D) Machine hours
Answer: (D) Machine hours
Q#14: Cost apportionment ensures:
(A) Cost control
(B) Cost tracking
(C) Direct charging
(D) Common costs shared among cost centers
Answer: (D) Common costs shared among cost centers
Q#15: FOH over/under absorbed =
(A) Under applied Rs.1,000
(B) Over applied Rs.1,000
(C) Under applied Rs.11,000
(D) Over applied Rs.38,000
Answer: (B) Over applied Rs.1,000
Q#16: Job order costing aim:
(A) Cost per job
(B) Cost per unit
(C) Job records
(D) All of the given options
Answer: (D) All of the given options
Q#17: Production report excludes:
(A) Units in beginning WIP
(B) Units sold
(C) Ending WIP
(D) Units completed
Answer: (B) Units sold
Q#18: Material unit cost =
(A) Rs.22
(B) Rs.16
(C) Rs.14
(D) Rs.8
Answer: (C) Rs.14
Q#19: Transfer from Dept A to B entry:
(A) Dr WIP A / Cr WIP B
(B) Dr WIP B / Cr WIP A
(C) Dr WIP B / Cr Materials
(D) Dr FG / Cr WIP B
Answer: (B) Dr WIP B / Cr WIP A
Q#20: FIFO stands for:
(A) Final Interest-Free Option
(B) First in First out Method
(C) Fixed Income Financial Operation
(D) None
Answer: (B) First in First out Method
Q#21: FOH variance:
(A) Over applied Rs.4,058
(B) Under applied Rs.2,152
(C) Under applied Rs.4,058
(D) Over applied Rs.2,152
Answer: (A) Over applied Rs.4,058
Q#22: Not part of cost unit:
(A) Advertising expenses
(B) Direct labor
(C) FOH
(D) Raw material
Answer: (A) Advertising expenses
Q#23: Imputed cost is:
(A) Explicit cost
(B) Implicit cost
(C) Firm cost
(D) Period cost
Answer: (B) Implicit cost
Q#24: Credit purchase journal entry:
(A) Inventory Dr / A/P Cr
(B) Purchases Dr / A/P Cr
(C) A/P Dr / Purchases Cr
(D) Inventory Dr / Purchases Cr
Answer: (A) Inventory Dr / A/P Cr
Q#25: EOQ =
(A) 163 units
(B) 1250 units
(C) 5000 units
(D) 160 units
Answer: (A) 163 units
Q#26: Labour hours calculated by all EXCEPT:
(A) Smart card
(B) Time sheet
(C) Store card
(D) Clock card
Answer: (C) Store card
Q#27: Inventory turnover ratio =
(A) 5.0 times
(B) 5.3 times
(C) 6.0 times
(D) 6.4 times
Answer: (C) 6.0 times
Q#28: Effective wage rate = Gross pay ÷
(A) Actual hours worked
(B) Time allowed
(C) Time saved
(D) None
Answer: (A) Actual hours worked
Q#29: Factory overhead cost is:
(A) Direct cost
(B) Prime cost
(C) Conversion cost
(D) Indirect production cost
Answer: (D) Indirect production cost
Q#30: Building depreciation apportioned on:
(A) Capital value
(B) Payroll
(C) Area in sq. feet
(D) Number of workers
Answer: (C) Area in sq. feet
Q#31: Budgeted FOH =
(A) Rs.10,000
(B) Rs.5,000
(C) Rs.70,000
(D) Rs.3,750
Answer: (C) Rs.70,000
Q#32: Cost of production report shows:
(A) Quantities only
(B) Costs only
(C) Purchased units only
(D) Quantities + Costs
Answer: (D) Quantities + Costs
Q#33: Production loss categories include:
(A) Normal loss
(B) Abnormal loss
(C) Unavoidable loss
(D) All of the given options
Answer: (D) All of the given options
Q#34: Rs.1000 cost spread over:
(A) 10 units
(B) 100 units
(C) 90 units
(D) 110 units
Answer: (C) 90 units