MGT402 QUIZ # 1

Which of the following is called Non Statutory deductions:
Select correct option:



Subscriptions to a trade union

Contributions by the employee to a pension scheme

Contributions by the employer to a pension scheme

All of the given

Which of the following would be considered to be an investment centre?
Select correct option:



Managers have control over marketing

Management have a sales team

Management have a sales team and are given a credit control function

Managers can purchase capital assets and are given a credit control function

The Inventory Turn over ration is 5 times and numbers of days in a year is 365.Inventory holding period in days would be
Select correct option:



100 days

73 days

50 days

10 days

If, Gross profit = Rs. 40,000 GP Margin = 25% of sales What will be the value of cost of goods sold?
Select correct option:



Rs. 160,000

Rs. 120,000

Rs. 40,000

Can not be determined

Overtime that is necessary in order to fulfill customer orders is called:
Select correct option:



Avoidable overtime

Unavoidable overtime

Premium Overtime

Flex time

Which of the following best describes the manufacturing costs?
Select correct option:



Direct materials, direct labor and factory overhead

Direct materials and direct labor

Direct materials, direct labor, factory overhead, and administrative overhead

Direct labor and factory overhead

From employer point of view, the total cost of wages and salaries is a combination of which of the following?
Select correct option:



Gross wages and salaries+employer's provident fund contributions

Gross wages and salaries+employee's provident fund contributions

Gross wages and salaries + Income Tax deductions

Gross wages and salaries + pension scheme payments

Manufacturing entities classified the inventory in which of three kinds?
Select correct option:



Material inventory,WIP inventory,Finished goods inventory

Material inventory,purchased good inventory,WIP inventory

Material inventory,purchased good inventory,Finished goods inventory

WIP inventory,Finished goods inventory,purchased good inventory

“Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of:
Select correct option:



Overstocking

Under stocking

Replenishment of stock

Acquisition of stock

Opportunity cost is the best example of:
Select correct option:



Sunk Cost

Standard Cost

Relevant Cost

Irrelevant Cost

Which of the following is to be called product cost
Select correct option:



Material cost

Labor cost

FOH cost

All of the given options

If opening inventory of material is Rs.20,000 and closing inventory is Rs. 40,000.the Average inventory amount will be:
Select correct option:



Rs. 40,000

Rs. 30,000

Rs. 20,000

Rs. 10,000

Where the applied FOH cost is greater than the actual FOH cost it is:
Select correct option:



Unfavorable variance

Favorable variance

Normal variance

Budgeted variance

Expensed when the product is sold
Included in the cost of goods sold
Related to specific Period
Not expensed

A method by which the good used are priced out at average cost is known as:
Select correct option:



BCVO

AVCO

c.FIFO

LIFO