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 to get net purchases?
(A) Purchases returns
(B) Carriage inward
(C) Custom duty
(D) All of the given options
Answer: (A) Purchases returns
Q#6: Given data (WIP + Finished goods + COGS), total manufactured cost is:
(A) Rs. 200,000
(B) Rs. 210,000
(C) Rs. 220,000
(D) Rs. 240,000
Answer: (C) Rs. 220,000
Q#7: If Sales = Rs. 1,200,000 and markup = 20% of cost, Gross profit is:
(A) Rs. 200,000
(B) Rs. 100,000
(C) Rs. 580,000
(D) Rs. 740,000
Answer: (A) 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 of:
(A) Lead time
(B) Re-order level
(C) Maximum consumption
(D) Danger level
Answer: (D) Danger level
Q#10: EOQ = 360 units, order cost Rs.5, carrying cost Rs.0.20, usage is:
(A) 2,592 units
(B) 25,920 units
(C) 18,720 units
(D) 129,600 units
Answer: (A) 2,592 units
Q#11: Material requisition is approved by:
(A) Store manager
(B) Production manager
(C) Supplier manager
(D) Purchase manager
Answer: (B) Production manager
Q#12: Direct labor is 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) Determination of wage rates
(B) Job evaluation
(C) Breaking job into elements
(D) All of the given options
Answer: (D) All of the given options
Q#16: Salary = 10,000 + (5 × 700) is:
(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 formula is:
(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#19: NOT FOH term is:
(A) Factory burden
(B) Factory expenses
(C) Supplementary costs
(D) Conversion costs
Answer: (D) Conversion costs
Q#20: Cost allocation means:
(A) Identifiable with cost centers
(B) Not identifiable costs
(C) Distribution of FOH
(D) None
Answer: (A) Identifiable with cost centers