Q#1: Cost accountants are concerned with ratios relating to profits and manufacturing costs, including:
(A) Gross mark up rate
(B) Inventory turnover ratio
(C) Cost of goods sold to sales ratio
(D) All of the given options
Answer: (D) All of the given options
Q#2: Rs. 850 earned on Rs. 10,000 loan is:
(A) Increase in loan
(B) Increase in dividends
(C) 8.5% return on investment
(D) All of the given options
Answer: (C) 8.5% return on investment
Q#3: Given formula belongs to:
(A) Rowan Plan
(B) Halsey Premium Plan
(C) Halsey Weir Plan
(D) Merrick’s differential system
Answer: (A) Rowan Plan
Q#4: Chief financial officer is also known as:
(A) Controller
(B) Staff accountant
(C) Auditor
(D) Finance director
Answer: (D) Finance director
Q#5: Cost that changes with volume is:
(A) Fixed cost
(B) Sunk cost
(C) Opportunity cost
(D) None of the given options
Answer: (D) None of the given options
Q#6: Costs changing with alternatives are called:
(A) Relevant costs
(B) Differential costs
(C) Target costs
(D) Sunk costs
Answer: (B) Differential costs
Q#7: Period cost is:
(A) Direct materials
(B) Indirect materials
(C) Factory utilities
(D) Administrative expenses
Answer: (D) Administrative expenses
Q#8: NOT a period cost:
(A) Indirect materials
(B) Administrative salaries
(C) Advertising costs
(D) Selling costs
Answer: (A) Indirect materials
Q#9: Total production cost =
(A) Prime cost + Factory overhead
(B) Conversion cost + Direct material
(C) Direct material + Direct labor + FOH
(D) All of the given options
Answer: (C) Direct material + Direct labor + FOH
Q#10: Inventory method not recommended under IAS 2:
(A) LIFO
(B) FIFO
(C) Weighted average
(D) Both LIFO & FIFO
Answer: (A) LIFO
Q#11: EOQ is a point where:
(A) Ordering cost = Carrying cost
(B) Ordering cost higher
(C) Ordering cost lower
(D) Total cost maximum
Answer: (A) Ordering cost = Carrying cost
Q#12: Normal loss is charged to:
(A) Factory overhead control account
(B) Work in process account
(C) Income statement
(D) All of the given options
Answer: (A) Factory overhead control account
Q#13: Material requisition approved by:
(A) Store manager
(B) Production manager
(C) Supplier manager
(D) Purchase manager
Answer: (B) Production manager
Q#14: Total salary =
(A) Rs. 3,500
(B) Rs. 13,500
(C) Rs. 10,000
(D) Rs. 6,500
Answer: (B) Rs. 13,500
Q#15: Total pay =
(A) Rs. 800
(B) Rs. 500
(C) Rs. 1,300
(D) Rs. 300
Answer: (C) Rs. 1,300
Q#16: Best FOH absorption base in mass production:
(A) Units produced
(B) Labor hours
(C) Prime cost
(D) Machine hours
Answer: (A) Units produced
Q#17: NOT included in FOH:
(A) Indirect material
(B) Indirect labor
(C) Indirect expense
(D) Direct labor
Answer: (D) Direct labor
Q#18: Cost apportionment refers to:
(A) Non-identifiable costs
(B) Distribution among cost centers
(C) Total FOH distribution among cost centers
(D) None
Answer: (C) Total FOH distribution among cost centers
Q#19: FOH difference minimal when based on:
(A) Normal capacity
(B) Designed capacity
(C) Direct labor hours
(D) Machine hours
Answer: (A) Normal capacity
Q#20: Completed units transferred to:
(A) Income summary
(B) Raw materials
(C) Finished goods
(D) Manufacturing summary
Answer: (C) Finished goods
Q#21: Transfer from Dept A to B:
(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#22: Expected loss in manufacturing process is:
(A) Operating loss
(B) Abnormal loss
(C) Normal loss
(D) Extraordinary loss
Answer: (C) Normal loss
Q#23: Good production =
(A) 2,175 Kg
(B) 2,975 Kg
(C) 3,325 Kg
(D) 4,425 Kg
Answer: (C) 3,325 Kg
Q#24: Cost of goods available for sale =
(A) Rs. 1,390,000
(B) Rs. 1,490,000
(C) Rs. 1,500,000
(D) Rs. 1,590,000
Answer: (B) Rs. 1,490,000
Q#25: EOQ minimizes:
(A) Conversion cost
(B) FOH cost
(C) Inventory cost
(D) Prime cost
Answer: (C) Inventory cost