Cost & Management Accounting
Question No: 1
Which of the following cost is linked with the calculation of cost of inventories?
► Product cost
► Period cost
► Both product and period cost
► Historical cost
Question No: 2
You made Rs. 10,000 loan to your cousin's company. At the end of one year, the company returned to you Rs. 10,850. The Rs. 850 is called which one of the following?
► Increases in loan
► Increases in dividends
► An 8.5% return on investment
► All of the given options
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
An average cost is also known as:
► Variable cost
► Unit cost
► Total cost
► Fixed cost
Question No: 5
Finished goods inventory costs represent the costs of goods that are:
► Currently being worked on
► Waiting to be worked on
► Waiting to be sold
► Already delivered to customers
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Question No: 6
Which of the following is deducted from purchases in order to get the value of Net purchases?
► Purchases returns
► Carriage inward
► Custom duty
► All of the given options
Question No: 7
Which of the following is correct?
► Units sold= Opening finished goods units + Units produced – Closing finished goods units
► Units Sold = Units produced + Closing finished goods units - Opening finished goods units
► Units sold = Sales + Average units of finished goods inventory
► Units sold = Sales - Average units of finished goods inventory
Question No: 8
In cost Accounting, normal loss is/are charged to:
► Factory overhead control account
► Work in process account
► Income Statement
► All of the given options
Question No: 9
Material requisition is a document that supports the requirement of the material. This document is sent to store incharge and approved by:
► Store manager
► Production manager
► Supplier manager
► Purchase manager
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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