MGT402 Quiz Cost & Management Accounting [9]

Cost & Management Accounting

Question No: 1
In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to:
? Work in Process Department A and a credit to Work in Process Department B
? Work in Process Department B and a credit to Work in Process Department A
? Work in Process Department B and a credit to Materials
? Finished Goods and a credit to Work in Process Department B

Question No: 2
Which of the following loss is expected in manufacturing process and represents a necessary cost of processing the marketable units?
? Operating loss
? Abnormal loss
? Normal loss
? Extraordinary loss

Question No: 3
A chemical process has no normal wastage of input. In a period, 3,500 Kg of material were in put and there was abnormal loss of 15% of in put. What quantity of good production was achieved?
? 2,175 Kg
? 2,975 Kg
? 3,325 Kg
? 4,425 Kg

Question No: 4
The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize:
? Conversion cost
? FOH cost
? Inventory cost
? Prime cost

Question No: 5
If management decides to buy in large quantities by placing few orders, it means
? Higher carrying cost and lower ordering cost
? Lower carrying cost and lower ordering cost
? Higher carrying cost and higher ordering cost
? Lower carrying cost and higher ordering cost

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Question No: 6
Who issues the Material Requisition form?
? Store incharge
? Work station incharge
? Supplier
? Manager

Question No: 7
Overtime premium which is paid to direct labor is charged to which of the following in head in case of normal circumstances?
? Work in process account
? Entire production
? Factory over head Cost account
? Selling control account

Question No: 8
Depreciation of building expense is an example of factory overhead which is apportioned on the basis of:
? Capital value
? Departmental payroll
? Area in square feet or cubic feet
? Number of workers

Question No: 9
Closing balance of work In Process (WIP) is part of:
? Assets a/c
? Expenses a/c
? Liability a/c
? Owner’s equity a/c

Question No: 10
A company has calculated that volume variance for a given month was favourable.This could have been caused by which of the following factors?
? The number of rejectes were lower than normal
? Machine breakdowns were lower than normal
? Delays were not experienced in the issuing of material to production
? All of the given options




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