Cost Management solved MCQs
1 of 5
1. Which of the following is true of standards?
2. Standards that can be attained only under the best circumstances are referred to as:
3. Which of the following equations can be used to calculate a material price variance?
4. Who is most likely to be held responsible for a material price variance?
5. Which of the following equations can be used to calculate a material quantity variance?
6. To produce a particular batch of product, Falcon Corporation paid its workers 12.00 per hour for 4,000hours of work. The standards for the quantity of work represented by the batch were 12.50 per hour and 4,400 hours. What was the labour efficiency variance?
7. The firm’s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labourhours, at a cost of 1,68,000, for 25,000 units of finished product that require 1 hour of direct labour each, at standard. What is the standard rate per direct-labour hour?
8. Which of the following is not an advantage of standard costing?
9. Which of the following is NOT a criticism of a standard-costing system?
10. The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance?
11. The monetary value attributed to normal losses in a process should be:
12. An abnormal gain in a process occurs in which of the following situations?
13. Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of the following is most likely to be the value at which is debited to the process?
14. Which of the following is the best explanation of the relevance of equivalent production units in process costing?
15. Purchased materials are added in the second department of a three-department process, this order doesnot increase the number of units produced in the second department and would:
16. The physical flow of units into and out of departments is shown on the:
17. Purchased materials are added in the second department of a three-department process; thisincreases the number of units produced in the second department and would always:
18. An equivalent unit of material or conversion cost is equal to:
19. Financial Accounting is concerned with the:
20. The nature of financial accounting is:
21. The main object of cost accounting is:
22. Cost accounting emerged mainly on account of:
23. Advantages of cost accounting system accrue:
24. Cost Accounting is applied to:
25. A colliery company employs:
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