MGT402 Quiz Cost & Management Accounting [5]

Cost & Management Accounting

Question No: 1
Which of the following would be considered as factory overhead using a job order cost system?
► Direct materials
► Direct labor
► Depreciation on factory buildings
► Salesperson's salary

Question No: 2
At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT:
► Number of units in the beginning work in process
► Number of units sold
► Number of units in the ending work in process and their estimated stage of completion
► Number of units completed

Question No: 3
In order to compute equivalent units of production, which of the following must be reasonably estimated?
► Units
► The percentage of completion
► Direct material cost
► Units started and completed

Question No: 4
When 10,000 ending units of work-in-process are 30% completed as to conversion, it means:
► 30% of the units are completed
► 70% of the units are completed
► Each unit has been completed to 70% of its final stage
► Each of the units is 30% completed

Question No: 5
LG has incurred cost of Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost for material?
► Rs. 22
► Rs. 16
► Rs. 14
► Rs. 8
**********************************************************************

**********************************************************************

Question No: 6
A chemical process has normal wastage of 10% of input. In a period, 2,500 Kg of material were input and there was abnormal loss of 75 Kg. What quantity of good production was achieved?
► 2,175 kg
► 2,250 kg
► 2,425 kg
► 2,500 kg

Question No: 7
If the cost per equivalent unit is Rs. 1.60. The equivalent units of output are 50,000. The WIP closing stock is 10,000 units, 40% completed. What will be the value of closing stock?
► Rs. 9,600
► Rs. 80,000
► Rs. 16,000
► Rs. 6,400

Question No: 8
Which of the given cost does not become the part of cost unit?
► Advertising expenses
► Direct labor cost
► Factory overhead cost
► Cost of raw material

Question No: 9
Which of the given cost becomes the part of cost unit?
► Direct material cost
► Factory overhead
► Direct labor cost
► All of the given options

Question No: 10
The main difference between the profit center and investment center is:
► Decision making
► Revenue generation
► Cost incurrence
► Investment




***********************************************************************

***********************************************************************