| 1. |
When amount deposited in a bank is withdrawn for financing a project, the losses of interest on bank deposits will be refered to as________ |
| A. | replacement cost |
| B. | pre production cost |
| C. | opprotunity cost |
| D. | sunk cost |
| Answer» C. opprotunity cost | |
| 2. |
If there is increase in the size of inventory orders, total annual ordering cost will ____________ |
| A. | increase |
| B. | decrease |
| C. | remain same |
| D. | change depending on other factors |
| Answer» B. decrease | |
| 3. |
Normal Ideal time______________ |
| A. | can not be avoided |
| B. | can be controlled |
| C. | can be minimised |
| D. | can be avoided |
| Answer» A. can not be avoided | |
| 4. |
The distribution of overheads alloted to particular department or cost center over the units produced is called _____________ |
| A. | absorption |
| B. | allocation |
| C. | departmentalisation |
| D. | apportionment |
| Answer» A. absorption | |
| 5. |
Prime cost + Over heads = __________ |
| A. | cost of sales |
| B. | works cost |
| C. | total cost |
| D. | cost of production |
| Answer» C. total cost | |
| 6. |
Notional interest charged to owner for drawings income credited only in _____________ |
| A. | debtors accounts |
| B. | cost accounts |
| C. | final accounts |
| D. | profit and loss accounts |
| Answer» B. cost accounts | |
| 7. |
A cost unit is _____________ |
| A. | a major of work output in a standard hour |
| B. | the cost per unit of electricity consumed |
| C. | a unit of product or service in relation to which costs are ascertained |
| D. | the costs per hour of operating a machine |
| Answer» C. a unit of product or service in relation to which costs are ascertained | |
| 8. |
Material controls involves control over _____________ |
| A. | issue of material |
| B. | consumption of material |
| C. | purchase, storage and issue of materials |
| D. | purchase of material |
| Answer» C. purchase, storage and issue of materials | |
| 9. |
An employee is eligible for getting overtime wage if he/ she works for more than ____________ |
| A. | 6 hours a day |
| B. | 12 hours a day |
| C. | 9 hours a day |
| D. | 8 hours a day |
| Answer» C. 9 hours a day | |
| 10. |
If an item of overhead expenditure is charges specifically to a single department this would be an example of ____________ |
| A. | absorption |
| B. | apportionment |
| C. | reapportionment |
| D. | allocation |
| Answer» D. allocation | |
| 11. |
The variables production overheads shall be absorbed in production cost based on ______________ capacity |
| A. | normal |
| B. | current |
| C. | super normal |
| D. | actual |
| Answer» D. actual | |
| 12. |
The basic rule of preparing the reconciliation statement is _______________ |
| A. | do as all has done |
| B. | do as i have done |
| C. | do as the other has done |
| D. | do as you had done |
| Answer» C. do as the other has done | |
| 13. |
The three major elements of product costs are all except____________ |
| A. | factory overhead |
| B. | indirect labour |
| C. | direct material |
| D. | direct labour |
| Answer» B. indirect labour | |
| 14. |
Material requisition is meant for _____________ |
| A. | purchase of material |
| B. | sales of material |
| C. | storage of material |
| D. | supply of materials from stores |
| Answer» D. supply of materials from stores | |
| 15. |
Halsey premium plan is ____________ |
| A. | individual incentive scheme |
| B. | group incentive scheme |
| C. | differential piece wage system |
| D. | time and piece wage system |
| Answer» A. individual incentive scheme | |
| 16. |
Which of the following is not a means whereby factory overheads can be charged out to production ? |
| A. | over time rate |
| B. | blanket rate |
| C. | machine hour rate |
| D. | direct labour rate |
| Answer» C. machine hour rate | |
| 17. |
Subsidy receivable with respect to any material shall be __________cost of material |
| A. | reduced from |
| B. | added to |
| C. | divided to |
| D. | multiplied to |
| Answer» A. reduced from | |
| 18. |
____________ may be valued on a FIF basis in cost accouts and LIFO basis in financial accounts. |
| A. | direct expenses |
| B. | administrative expenses |
| C. | raw materials |
| D. | labour |
| Answer» C. raw materials | |
| 19. |
Indirect cost are known as ______ |
| A. | variable cost |
| B. | overheads |
| C. | none of the above |
| D. | fixed cost |
| Answer» B. overheads | |
| 20. |
Material is issued by store keeper against _____________ |
| A. | material requisition |
| B. | purchase requisition |
| C. | material order |
| D. | goods received notes |
| Answer» A. material requisition | |
| 21. |
Number of methods avaliable for calculation of labour turn over is ________________ |
| A. | forth |
| B. | three |
| C. | five |
| D. | two |
| Answer» B. three | |
| 22. |
Which of the following bases is not a appropriate for apportionment of transport department cost ? |
| A. | crane value |
| B. | crane hours |
| C. | truck milage |
| D. | truch value |
| Answer» A. crane value | |
| 23. |
Labour costs __________Salaries and wages paid to temporary employees. |
| A. | written |
| B. | includes |
| C. | mentioned |
| D. | excludes |
| Answer» B. includes | |
| 24. |
Which of the following is not an example of marketing overheads ? |
| A. | salaries of sales staff |
| B. | secondary packing charges |
| C. | salary of the foreman |
| D. | publicity expenses |
| Answer» C. salary of the foreman | |
| 25. |
The document which is prepared after receiving and inspecting material _____________ |
| A. | goods received note |
| B. | inventory record |
| C. | material record note |
| D. | bill of material |
| Answer» A. goods received note | |