Q#1: What was the inventory turnover ratio?
(A) 3.57 times
(B) 3.67 times
(C) 3.85 times
(D) 5.36 times
Answer: (B) 3.67 times
Q#2: The chief financial officer is also known as the:
(A) Controller
(B) Staff accountant
(C) Auditor
(D) Finance director
Answer: (D) Finance director
Q#3: A typical factory overhead cost is:
(A) Distribution
(B) Internal audit
(C) Compensation of plant manager
(D) Design
Answer: (C) Compensation of plant manager
Q#4: Which of the following is a period cost?
(A) Direct materials
(B) Indirect materials
(C) Factory utilities
(D) Administrative expenses
Answer: (D) Administrative expenses
Q#5: Which of the following is deducted from purchases in order to get the value of Net purchases?
(A) Purchases returns
(B) Carriage inward
(C) Custom duty
(D) All of the given options
Answer: (A) Purchases returns
Q#6: What will be the value of total manufactured cost?
(A) Rs. 200,000
(B) Rs. 210,000
(C) Rs. 220,000
(D) Rs. 240,000
Answer: (B) Rs. 210,000
Q#7: If Sales = Rs. 1,200,000 and Markup = 20% of cost, Gross profit will be:
(A) Rs. 200,000
(B) Rs. 100,000
(C) Rs. 580,000
(D) Rs. 740,000
Answer: (C) Rs. 200,000
Q#8: Weighted average rate per unit is calculated by:
(A) Cost of goods issued/number of units issued
(B) Total cost/total units
(C) Cost of goods manufactured/closing units
(D) Cost of goods sold/total units
Answer: (B) Total cost/total units
Q#9: Average consumption × Emergency time is formula for:
(A) Lead time
(B) Re-order level
(C) Maximum consumption
(D) Danger level
Answer: (D) Danger level
Q#10: EOQ usage in units (same standard question):
(A) 2,592 units
(B) 25,920 units
(C) 18,720 units
(D) 129,600 units
Answer: (B) 25,920 units
Q#11: Material requisition is approved by:
(A) Store incharge
(B) Production manager
(C) Supplier manager
(D) Purchase manager
Answer: (B) Production manager
Q#12: Direct Labor is an element of:
(A) Prime cost
(B) Conversion cost
(C) Total production cost
(D) All of the given options
Answer: (D) All of the given options
Q#13: Basic pay + bonus + overtime is called:
(A) Net pay
(B) Gross pay
(C) Take home pay
(D) All of the given options
Answer: (B) Gross pay
Q#14: Payslip contains all EXCEPT:
(A) Gross pay
(B) Deductions
(C) Net pay
(D) Tax rebates
Answer: (D) Tax rebates
Q#15: Basic object of job analysis is:
(A) Wage determination
(B) Job evaluation
(C) Job breakdown
(D) All of the given options
Answer: (D) All of the given options
Q#16: Total salary (10,000 + 5×700):
(A) Rs. 3,500
(B) Rs. 13,500
(C) Rs. 10,000
(D) Rs. 6,500
Answer: (B) Rs. 13,500
Q#17: Rowan premium plan bonus formula:
(A) (Time saved/time allowed) × 100
(B) (Time allowed/time saved) × 100
(C) (Actual time/time allowed) × 100
(D) (Time allowed/actual time) × 100
Answer: (A) (Time saved/time allowed) × 100
Q#18: Labor turnover EXCEPT:
(A) Replacement workers
(B) Expansion workers
(C) Change in labor force
(D) Retrenched workers
Answer: (B) Expansion workers
Q#19: NOT a factory overhead term:
(A) Factory burden
(B) Factory expenses
(C) Supplementary cost
(D) Conversion costs
Answer: (D) Conversion costs
Q#21: Cost apportionment is:
(A) Non-identifiable costs
(B) FOH distributed among departments
(C) Total FOH distribution
(D) None
Answer: (B) FOH distributed among departments
Q#22: Repeated distribution method:
(A) Until values become very small
(B) Very large
(C) Small
(D) None
Answer: (A) Until values become very small
Q#23: FOH applied rates are:
(A) Used for control
(B) Actual basis
(C) Predetermined in advance
(D) None
Answer: (C) Predetermined in advance
Q#24: FOH applied rate:
(A) Rs.2.00 per hour
(B) Rs.2.50 per hour
(C) Rs.2.55 per hour
(D) Rs.0.50 per hour
Answer: (A) Rs.2.00 per hour
Q#25: FOH under/over applied:
(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 by Rs.1,000
Q#26: Capacity variance arises due to:
(A) Absorbed FOH vs budgeted FOH
(B) Absorption rate difference
(C) Budgeted vs actual FOH
(D) None
Answer: (A) Absorbed FOH vs budgeted FOH
Q#27: TRUE statement:
(A) Job order used for many products
(B) Costs traced to departments
(C) Service only uses job costing
(D) Process costing used for many products
Answer: (A) Job order used for many products
Q#28: Aim of job order costing:
(A) Job cost determination
(B) Unit cost
(C) Separate job records
(D) All
Answer: (D) All
Q#29: Process costing EXCEPT:
(A) Beverages
(B) Food
(C) Hospitality
(D) Petroleum
Answer: (C) Hospitality
Q#30: NOT in production report:
(A) Beginning WIP
(B) Units sold
(C) Ending WIP
(D) Completed units
Answer: (B) Units sold
Q#31: Best for continuous production:
(A) Job order
(B) Process costing
(C) Standard costing
(D) Actual costing
Answer: (B) Process costing
Q#32: Material unit cost:
(A) Rs.22
(B) Rs.16
(C) Rs.14
(D) Rs.8
Answer: (D) Rs.8
Q#33: Inventory turnover ratio:
(A) 5.0
(B) 5.3
(C) 6.0
(D) 6.4
Answer: (B) 5.3 times