MGT402 Quiz Cost & Management Accounting [8]

Cost & Management Accounting

Question No: 1
EOQ is a point where:
► Ordering cost is equal to carrying cost
► Ordering cost is higher than carrying cost
► Ordering cost is lesser than the carrying cost
► Total cost is maximum

Question No: 2
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: 3
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: 4
If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
What will be the total Salary?
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500

Question No: 5
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

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Question No: 6
Where there is mass production of homogeneous units or where few products are produced in batches, which of the following cost driver would be regarded as best base for the determination of Factory overhead absorption rate?
► Number of units produced
► Labor hours
► Prime cost
► Machine hours

Question No: 17
Which of the following is NOT included under the head of FOH cost?
► Indirect Material
► Indirect Labor
► Indirect Expense
► Direct labor

Question No: 8
The term Cost apportionment is referred to:
► The costs that can not be identified with specific cost centers.
► The total cost of factory overhead needs to be distributed among specific cost centers but must be divided among the concerned department/cost centers.
► The total cost of factory overhead needs to be distributed among specific cost centers.
► None of the given options

Question No: 9
The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:
► Normal capacity
► Designed capacity
► Direct Labor hours
► Machine hours

Question No: 10
The appropriate journal entry to transfer the cost of completed units from the Work in Process account would involve a credit to Work in Process and a debit to which of the following accounts?
► Income Summary
► Raw Materials Inventory
► Finished Goods
► Manufacturing Summary

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