Cost Accounting Mcqs - Study For Buddies

Wednesday, January 19, 2022

Cost Accounting Mcqs

S.Y B.COM
SEMESTER - 3

COST ACCOUNTING
(CA)
MCQS - 27 NOVEMBER 2021

1. Which of the following is wider term? 

A. Expenses 
B. Losses 
C. Cost 
D. Assets 

2. This process of charging the whole amount of an item of overhead directly to a department or cost centre is called, __________.  

A. Apportionment 
B. Absorption 
C. Overhead charged 
D. Allocation 

3.  From the following information calculate value of X: X= 4000+20%Y and Y=2600+10%X 

A. 4612 
B. 3061  
C. 2600 
D. 4160 

4. Compute Maximum level of stock based on following information: Re-order level: 300 Units, Economic order quantity: 200 Units, Supply Period: 5 to 15 days, Avg. Consumption: 15 Units per day and Maximum Consumption: 20 Units per day 

A. 425 Units 
B. 450 Units 
C. 400 Units 
D. 500 Units 

5. Under __________items of materials are controlled according to their 'value' or 'financial importance' 

A. ABC Analysis 
B. V.E.D Analysis 
C. EOQ 
D. Fixation of Stock Level  

6. This process of charging the whole amount of an item of overhead directly to a department or cost centre is called __________. 

A. Apportionment 
B. Absorption 
C. Overhead charged 
D. Allocation 

7. Under applied overheads will always result when a predetermined overhead rate is applied and..... 

A. Production is less than defined capacity 
B. Actual overhead costs are more than budgeted overhead cost 
C. Actual overhead incurred is less than applied overhead 
D. Actual overhead incurred is more than applied overhead. 

8. Which of the following is correct way of classifying costs based on behavior? 

A. Material, Labour & Expenses 
B. Direct & Indirect 
C. Production, Administration, Selling, Distribution And Research & Development 
D. Fixed, Variable & Semi- Variable 

9. if absorption rate is Rs. 130 per hour, the production hours are 300 and the under absorption being Rs. 3,000, actual expenses would be: 

A. Rs. 36,000  
B. Rs. 39,000 
C. Rs. 42,000 
D. Rs. 30,000 

10. The time gap between placing an order and receiving the material is known as 

A. Purchase time 
B. Reordering time 
C. Lead time 
D. Emergency delivery time 

11. Assertion (A): Overheads are recovered in costing based on predetermined rates. 
Reason (R): This solves the problem of treatment of underrecovery or over recovery of overheads. Select the correct answers from the options given below - 

A. Both A and R are true 
B. Both A and R are false 
C. A is true, but R is false 
D. A is false, but R is true 

12. About 2025 units are required monthly for a machine. A fixed cost of Rs. 40 per order is incurred for placing an order. The carrying cost of material per unit amounts to Rs. 2.4 per annum. Compute EOQ. 

A. 2025 Units 
B. 900 Units 
C. 500 Units 
D. 1200 Units 

13. Calculate Conversion Cost: Direct material : Rs. 85,000 Direct labour : Rs.80,000 Direct Expenses: Rs. 50,000 Production overhead: Rs. 35,000 Office overhead: Rs. 10,000 Selling overhead : Rs. 5,000  

A. Rs. 2,15,000  
B. Rs. 1,65,000  
C. Rs. 2,50,000  
D. Rs. 2,65,000 

14. Match the followings in respect of reasons of overtime and its accounting treatment 

Reason

Accounting Treatment

(i) Under Staffing

(a) To Costing Profit & loss A/c

(ii) On request of customer

(b) To Normal Wage rate

(iii) Abnormal circumstances

(c) To the Particular Job


A. (i - a), (ii - b), (iii - c) 
B. (i - b), (ii - a), (iii - c) 
C. (i - c), (ii - b), (iii - a) 
D. (i - b), (ii - c), (iii - a) 

15. Calculate Minimum Level. Maximum usage of component: 450 units per week Minimum usage of component: 150 units per week Normal reorder 5 weeks Minimum reorder period: 4 weeks 

A. 2700 units 
B. 1200 units 
C. 1500 units 
D. 900 units 

16. Materials purchased during the month of July-2021 were: 4th July-800 units @ Rs. 20 per unit, 12th July - 1,000 units @ Rs. 30 per unit, 25th July-600 Units @ Rs. 40 per unit. Calculate issue price of material by 'periodic simple average price method' 

A. Rs. 20 per unit 
B. Rs. 40 per unit 
C. Rs. 30 per unit 
D. Rs. 50 per unit 

17. Type of material that classifies as type 'A' material in ABC analysis- 

A. High value, less quantity 
B. High value, more quantity 
C. Low value, more quantity 
D. Low value, less quantity 

18. ________ contains both quantitative and money values of stores items. 

A. Bin Card 
B. Store Card 
C. Stores Ledger 
D. Stock Card 

19. For worker A if Standard Time: 10 Hours, Time Taken: 8 Hours, Wage Rate : Rs. 25. Total Earning Under Halsey Bonus Plan will be Rs. _________. 

A. Rs. 250 
B. Rs. 225 
C. Rs. 200  
D. Rs. 300 

20. On 30.09.2021 Stock as per Stores ledger account was 125 units while stock taking shows Actual Stock of 120 units only. How would you record this transaction in stores ledger on the above date.? 

A. It is shortage so should be recorded as issue of 5 units 
B. It is surplus so should be recorded as receipt of 5 units 
C. It is shortage so should be recorded as receipt of 5 units 
D. It is surplus so should be recorded as issue of 5 units 

21. Factory expenses actually paid Rs. 10,000. Rate of recovery is 30% of direct labour. Direct labour is Rs. 25,000. It shall be _________. 

A. Over absorption Rs. 2,500 
B. Under absorption Rs. 2,500 
C. Actual absorption Rs. 10,000 
D. Under absorption Rs. 5,000 

22. Calculate issue price for 750 units on 07.07.2021 under weighted Average Price: Opening stock as on 01.07.2021, 500 units @ Rs. 20 per unit and Purchases on 05.07.2021, 400 units @ Rs. 21 per unit.

A. Rs. 21
B. Rs. 20.44
C. Rs. 20.50
D. Rs. 20

23. Calculate issue price per 1000 bricks.: Total bricks ordered:5,00,000 Breakage in transit the bricks -1% of the bricks purchased Bricks broke during Loading & Unloading: 2000 Total cost incurred for purchasing 50,000 bricks: 2,25,000 

A. Rs. 450 
B. Rs. 454.55 
C. Rs. 456.39 
D. Rs. 451.81 

24. Actual production on particular day is 120 units, time allowed for 10 units is 1 hour and hourly rate is Rs.4. Calculate Earning under piece rate system. 

A. Rs. 32
B. Rs. 40 
C. Rs. 48 
D. Rs. 45 

25. Weighted Average of 100 units is Rs. 280. Out of it total cost of 40 units is Rs. 10,000. what would be per unit cost of remaining units? 

A. Rs. 300 
B. Rs. 250 
C. Rs. 280 
D. Rs. 480 

26. ________ is a location/person/an item of equipment/group of these for which costs are ascertained and used for the purpose of cost control. 

A. Cost 
B. Cost Centre 
C. Costing 
D. Cost Accounting 

27. Choose the correct sequencing of purchase procedure 
i preparation of purchase order 
ii selection of supplier 
iii receipt of purchase requisition 
iv return of rejected material 

A. 1, 3, 4, 2 
B. 3, 2, 1, 4 
C. 2, 4, 3, 1 
D. 3, 2, 4, 1 

28. The following information is collected from the personnel department of ACC Ltd for the year ending 31st March 2021. Number of workers at the beginning of the year 8,000 and at the end of the year 9,600, number of workers left the company during the year 500, number of workers discharged during the year 100, number of workers replaced due to leaving and discharges 700, and additional workers employed for expansion during the year 1500. You are required to calculate labour turnover rate by using flux method.  

A. Flux method 23.86% 
B. Flux method 14.77% 
C. Flux method 6.82% 
D. Flux method 15.89% 

29. XYZ company is engaging in executing job and its factory overhead costs of three months are as follows: July- Rs. 3000, August - Rs.4200, September Rs. 3,800. Overheads are absorbed based on production. Production units in the month of July - 1000, August - 1500, and September- 3000. Overhead absorption rate is fixed Rs. 2 per unit every month. Find out the amount of overheads under or over absorbed after the end of three months. 

A. Nil 
B. 2200 Over absorbed 
C. 1200 Under absorbed 
D. 1000 under absorbed 

30. Which of the following analysis is used generally for Spare-parts? 

A. ABC Analysis 
B. VED Analysis 
C. Inventory Analysis 
D. PQR Analysis  

31. Standard output for 1 hour is 24 units; actual output produced by Ram for 10 hours is 264 units. Wages rate Rs. 10 per hour. Calculate the amount of bonus and total wages under Emerson's Efficiency Plan. 

A. Total bonus Rs.30, Total wages Rs. 130 
B. Total bonus Rs.20, Total wages Rs. 110 
C. Total bonus Rs.25, Total wages Rs. 130 
D. Total bonus Rs.30, Total wages Rs. 120 

32. Calculate the earnings of Mr. A under Taylor's Differential Piece Rate Plan: Standard output and wages for a month of 25 days is 1,000 units and Rs. 12,500. Mr. A produced 1,100 units during 25 days. 
 
A. Rs. 11000 
B. Rs. 16500  
C. Rs. 12,500 
D. Rs. 13750 

33. For worker A if Standard Time: 10 Hours, Time Taken: 8 Hours, Wage Rate : Rs. 25. Total Earning Under Rowan Bonus Plan will be Rs. _________.

A. Rs. 250 
B. Rs. 200 
C. Rs. 240 
D. Rs. 300 

34. Calculate the EOQ from the following information: Monthly requirement= 1000 units, ordering cost= Rs. 60 per order, Price per unit = Rs. 100 and Inventory carrying cost=15% on average inventory per unit per annum. 

A. 309.84 units 
B. 500 units 
C. 89.44 units 
D. 250.84 units 

35. Perpetual Inventory System is Supplemented by a System of _________ to ensure that Physical Stock Agrees With The Book Record. 

A. VED Analysis  
B. Continuous Stock taking 
C. EOQ Analysis 
D. ABC Analysis 

36. As per the analysis of time card the Gross Earnings of a worker is Rs. 25,000 and deductions are Contribution to PF and ESI Rs. 1,500 and Rs. 600 respectively advance against wages Rs. 800 Co-operatives dues Rs. 2300 and Income tax Rs. 500. It is the practice in the industry to contribute 80% of amount to PF and ESI by the employer. find Total wage cost.  

A. 27100 
B. 22100 
C. 26680 
D. None 

37. From the following information distribute cost of Time Keeping department among various other departments: Total cost of Time keeping department as per primary Distribution: Rs. 10000, Ratio of Stores Requisition: 4:3:2:1, Ratio of Machine Hours: 3:3:2:2, Ratio of No of Employee: 3:4:2:1 and Ratio of Floor area: 5:3:1:1 

A. Rs. 4000, Rs. 3000, Rs. 2000 and Rs. 1000 
B. Rs. 3000, Rs. 3000, Rs. 2000 and Rs. 2000 
C. Rs. 3000, Rs. 4000, Rs. 2000 and Rs. 1000 
D. Rs. 5000, Rs. 3000, Rs. 1000 and Rs. 1000 

38. An analysis of the Time Card of a worker on a machine shows that of the total 24 hours, he worked 22 hours (including 2 hours overtime due to abnormal circumstances) on production and 2 hours was normal Idle Time due to setting up of machine. The wage rate of the worker is Rs. 100 per hour; but overtime is 120 % extra. What is the overtime premium and its treatment? 

A. 240 & Costing profit & loss account 
B. 240 & Factory overheads 
C. 2640 & Direct Wages 
D. 2400 & costing profit & loss account

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