S.Y B.COM
SEMESTER - 3
MID SEMESTER EXAMINATION
COST ACCOUNTING
MCQS - OCTOBER 2017
(1) The difference between the time for which the employees are paid and the employees time booked for the jobs are called as _______.
(A) Abnormal Time
(B) Idle Time
(C) Normal Time
(D) None of (A), (B) & (C)
(2) X Ltd. incurs cost on worker P during a particular month: Basic Wages Rs.10,000 and Dearness Allowance 50% (of basic wages). Both Employer as well as employee each contributes 8% of basic wages to Provident Fund and 2% of basic wages to Employees' State Insurance. The labour cost incurred by X Ltd. on p for a particular month is Rs. _______.
(A) 16,000
(B) 17,000
(C) 15,000
(D) 14,000
(3) Which one of the following is not an unavoidable cause of labour turnover?
(A) Seasonal nature of the business
(B) Illness or accident
(C) Marriage-in case of women workers
(D) Unhealthy working conditions
(4) In a company, the payroll shows 600 employees on 1st Sep, 2017 and 1,000 employees on 30th Sep, 2017. During the Sep, 2017, 100 employees resigned, 20 employees discharged and 80 employees were replaced due to resignations and discharges. The labour turnover under Replacement Method is
(A) 15%
(B) 10%
(C) 25%
(D) 12.5%
(5) An example of direct labour cost is _______.
(A) Director's Salary
(B) Foreman's Wages
(C) Machine Operator's Wages
(D) Salesman's Salary
(6) Under Emerson's efficiency bonus plan, no bonus is payable when efficiency is less than _______.
(A) 83%
(B) 67%
(C) 100%
(D) None of (A), (B) & (C)
(7) ________ represents the resources that have been sacrificed to attain a particular objective.
(A) Abnormal Cost
(B) Cost
(C) Cost Centre
(D) Cost Unit
(8) In an automobile company, assembly shop is called _______.
(A) Service cost centre
(B) personal cost centre
(C) cost unit
(D) Production cost centre
(9) _______ is one of the classifications of costs by nature of traceability to a cost object as per CAS-1.
(A) Fixed Cost
(B) Indirect Expenses
(C) Batch Cost
(D) Operation Cost
(10) Which of the following is the Cost accounting standard on production and operation overheads ?
(A) CAS-1
(B) CAS-3
(C) CAS-6
(D) CAS-7
(11) In assignment of overheads, if the service departments are not inter-dependent, then _______ method will be applied.
(A) Step Ladder Method
(B) Trial and Error Method
(C) Repeated distribution method
(D) None of (A), (B) & (C)
(12) Under simultaneous equation method, two simultaneous equations are formed for
(1) Service department A = 7,020 + 0.20B & (2) B = 9,000 + 0.10A. The total cost of service department A is
(A) Rs.9,900
(B) Rs.16,020
(C) Rs.9,000
(D) Rs.1,980
(13) In a factory, overheads of a department are absorbed at the rate of Rs.5 per machine hour. The total overheads incurred and the machine hours utilized for the department for April, 2017 were Rs. 70,000 and 8,000 hours respectively. On the basis of above information, which one of the following is true ?
(A) Rs.30,000 under absorption
(B) Rs.70,000 over absorption
(C) Rs.30,000 over absorption
(D) Rs.40,000 under absorption
(14) In a manufacturing concern, the estimated factory overheads are Rs.5,00,000 and the estimated labour hours are 50,000 for the year 2016-17. If 1,000 labour hours are used on job on.111, then overheads charged to Job no.111 as per labour hour method is _______.
(A) Rs.25,000
(B) Rs.50,000
(C) Rs.10,000
(D) None of (A), (B) & (C)
(15) Carriage and cartage expenses of indirect material used for manufacturing goods are treated as
(A) Part of production overheads
(B) Direct Cost
(C) Abnormal Cost
(D) All of (A), (B) & (C)
(16) In assignment or distribution of ovarheads to production an service departments, time keeping expense ar assigned on the basis of
(A) Machine Hours
(B) No. of emplayees in each department
(C) No. of machines in each department
(D) Floor Area occupied
(17) In case of Gold jewellery, the cost unit is
(A) Per 5 grams
(B) Per 10 grams
(C) Per 100 grams
(D) Per customer
(18) _______ Is the aggregate of direct material cost, direct employee cost and direct expenses.
(A) Fixed Cost
(B) Overheads
(C) Factory Overheads
(D) Prime Cost
(19) The cost of drawing, design and layout is an example of
(A) Abnormal cost
(B) Indirect Expenses
(C) Indirect Material
(D) Direct Expenses
(20) in case of direct transfer of a material from one job to another within the organization, it is recorded in the store ledger account as
(A) Receipt of materials
(B) Transfer of materials
(C) Issue of materials
(D) None of (A), (B) & (C)
(21) Which of the following is not relating to the material purchase procedure ?
(A) Receiving purchase requisition
(B) Inviting tender from suppliers of material
(C) Issue of material to production department
(D) Preparation and execution of purchase orders
(22) On 29-9-2017, store ledger account shows three lot of material in balance:
1,500 units at Rs.20 each purchased on 25-9-2017, 500 units at Rs.10 each purchased on 27-9-2017 and 1,000 units at Rs.25 each purchased on 28-9-2017. On 30-9-2017, physical stock taking being done and 10 units are found in shortage in store, if a company follows FIFO method as pricing of issue of material, then the shortage of 10 units is recorded in store ledger account as
(A) Receipt: 10 units at Rs 20 each
(B) Receipt: 10 units at Rs.10 each
(C) Issue: 10 units at Rs.25 each
(D) Issue: 10 units at Rs.20 each
(23) In a manufacturing company, rate of consumption of an item of material is 8 to 12 units per day and its supply period is 10 to 20 days. The level at which the storekeeper will initiate the action for replennishments is _______ units.
(A) 240
(B) 80
(C) 160
(D) 120
(24) End product and / or intermediate product units that do meet quality standards is / are referred as
(A) Spoilage
(B)Defectives
(C) Waste
(D) All of (A), (B) & (C)
(25) Vika Ltd. purchases a material in economic order quantity (EOQ) size in a year. The annual ordering and carrying average inventory cost both are amounts to Rs.5,000. The cost of placing an order is Rs.100 each. The carrying cost of average inventory is Rs.2 per unit per annum. The price of the material is Rs.10 per unit. What shall be EOQ (unit) ?
(A) 2,500 units
(B) 1,250 units
(C) 5,000 units
(D) 6,250 units
(26) _______ Of pricing of issue ignores quantity and rate of material in opening balance in the computation of issue rate of a material to be issued to the production department.
(A) Weighted Average Method
(B) Base stock Method
(C) Periodic Weighted Average Method
(D) None of (A), (B) & (C)
(27) The average monthly consumption of a material is 1,200 kgs., costing Rs.500 each. The carrying cost is 2% of the average inventory per annum. The cost of placing an order is Rs.500. If a company purchases the material in economic order quantity, then annual total inventory cost is
(A) Rs.72,12,000
(B) Rs.72,06,000
(C) Rs.72,00,000
(D) Rs.60,00,000
(28) In a company, weekly usage of an item of material is minimum 50 units, average 100 units and maximum 150 units. The Reorder level and the Re-order quantity are 600 units and 300 units respectively. The supply period _______ is 2 to 4 weeks. The maximum level is _______.
(A) 600 units
(B) 1,000 units
(C) 1,200 units
(D) 800 units
(29) Rowan and Halsey bonus plan are introduced in the year ______.
(A) 1891 and 1901 respectively
(B) 1901 and 1891 respectively
(C) 1901 only
(D) 1891 only
(30) The standard time for a job is 24 hours and the hourly rate of wage is Rs.90. The bonus as per Halsey Bonus Plan is Rs.360. Time taken to complete the job is _______ hours.
(A) 16
(B) 08
(C) 24
(D) 04
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