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When amount deposited in a bank is withdrawn for financing a project, the losses of interest on bank deposits will be refered to as________ |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 |