MGT402 Quiz Cost & Management Accounting [3]

Cost & Management Accounting

Question No: 1
Inventory of Rs. 96,000 was purchased during the year. The cost of goods sold was Rs. 90,000 and the ending inventory was Rs. 18,000. What was the inventory turnover ratio for the year?
► 5.0 times
► 5.3 times
► 6.0 times
► 6.4 times

Question No: 2
Calculate total salary received with the given data.
Salary Rs.5000
Per Piece commission 10 % per piece Unit sold 700 pieces
Price per piece Rs. 10
► Rs. 5,100
► Rs. 5,000
► Rs. 5,600
► Rs. 5,700

Question No: 3
Which of the given statement is CORRECT for Indirect Labor?
► It is charged to factory over head account
► It is charged to work in process
► It is entire production
► It is charged to administrative expenses

Question No: 4
A production worker paid salary of Rs. 700 per month plus an extra Rs. 5 for each unit produced during the month. This labor cost is best described as:
► A fixed cost
► A variable cost
► A semi variable cost
► A step fixed cost

Question No: 5
If absorbed factory overhead is Rs.155,000 and Budgeted factory overhead for actual volume is Rs. 110,000 then difference of both will be:
► Unfavorable Spending variance of Rs. 45,000
► Favorable Spending variance of Rs. 45,000
► Favorable Volume variance of Rs. 45,000
► Favorable Budget variance of Rs. 45,000
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Question No: 6
In case of process costing, the output of existing department will be considered as _____________ for subsequent department.
► Finished product
► Raw material
► Purchases
► Inventory

Question No: 7
With reference to cost of production report, which of the following is NOT included in Quantity Schedule?
► Unit put into process
► Equivalent units produced
► Units transferred out to subsequent department
► Units reconceived from preceding department

Question No: 8
Which of the given cost is NOT required to prepare Cost of Production Report?
► Period cost
► Material cost
► Labour cost
► Factory overhead cost

Question No: 9
Which of the given is CORRECT for accounting entry of closing balance of Work In Process (WIP)?
► WIP a/c Dr and Inventory a/c Cr
► Inventory a/c Dr and WIP a/c Cr
► WIP a/c Dr and payroll a/c Cr
► There is no accounting entry for closing balance of WIP

Question No: 10
Accounting entry of closing balance can be recorded for:
► Income a/c and Expenses a/c
► Liability a/c and Owner’s equity a/c
► Asset a/c and Liability a/c
► Liability a/c and Expenses a/c

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