MGT402 Quiz Cost & Management Accounting [1]

Question No: 1
Which of the following product cost is Included in prime cost and conversion cost?
► Direct labor
► Manufacturing overhead
► Direct material
► Work in Process

Question No: 2
Over which of the following is the manager of the Profit center likely to have control?
I. Selling process
II. Controllable costs
III. Apportioned head office costs
IV. Capital investment in the center
► I, II and III
► I, II and IV
► I and II
► I, II, III and IV

Question No: 3
Machine lubricant used on processing equipment in a manufacturing plant would be classified as a:
► Period cost (manufacturing overhead)
► Period cost (Selling, General & Admin)
► Product cost (manufacturing overhead)
► Product cost (Selling, General & Admin)

Question No: 4
Which of the following costs would NOT be a period cost?
► Indirect materials
► Administrative salaries
► Advertising costs
► Selling costs

Question No: 5
Which of the following is CORRECT to calculate cost of goods manufactured?
► Direct labor costs plus total manufacturing costs
► The beginning work in process inventory plus total manufacturing costs and subtract the ending work in process inventory
► Beginning raw materials inventory plus direct labor plus factory overhead
► Conversion costs and work in process inventory adjustments results in cost of goods manufactured


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Question No: 6
While calculating the EOQ, carrying cost is taken as the:
► %age of unit cost
► %age of ordering cost
► %age of annual required units
► Total unit cost

Question No: 7
If, Wage rate Rs. 100/hr
Working hours 8 hours
Shift allowance Rs. 500
Total pay will be:
► Rs. 800
► Rs. 500
► Rs. 1,300
► Rs. 300

Question No: 8
All of the following are avoidable causes of labor turnover EXCEPT:
► Personal betterment of worker
► Dissatisfaction with job
► Bad working conditions
► Long and odd working hours

Question No: 9
The term cost allocation is described as:

► The costs that can be identified with specific cost centers.
► The costs that can not be identified with specific cost centers.
► The total cost of factory overhead needs to be distributed among specific cost enters.
► None of the given options

Question No: 10
Over applied FOH will always result when a predetermined FOH rate is applied and:
► Production is greater than defined capacity
► Actual overhead costs are less than budgeted
► Budgeted capacity is less than normal capacity
► Actual overhead incurred is less than applied Overhead

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