MGT402 Mid Term 2009

Cost

If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units?► 2,592 units► 25,920 units► 18,720 units► 129,600 unitsAns: A is correct optionWhen purchases are added to raw material opening Inventory, we get the value of:► Material consumed.► Material available for use.► Material needed.► Raw material ending inventory.Ans: B is correct optionA cost that has been incurred but cannot be changed by present or future decisions is called:► Sunk cost► Differential cost► Opportunity cost► Marginal costAns: A is correct optionIn the process costing when material is issued for production to department no1.what would be the journal entry Passed?► W.I.P (Dept-I)To Material a/c► W.I.P (Dept-ii)To Material a/c► Material a/cTo W.I.P (Dept-ii)► W.I.P (Dept-ii)o FOH applied.Ans: A is correct optionThe Process of cost apportionment is carried out so that:► Cost may be controlled► Cost unit gather overheads as they pass through cost centers► Whole items of cost can be charged to cost centers► Common costs are shared among cost centersAns: D is correct option The flux method of labor turnover denotes:► Workers employed under the expansion schemes of the company► The total change in the composition of labor force► Workers appointed against the vacancy caused due to discharge or quitting of the organization► Workers appointed in replacement of existing employeesAns: B is correct optionIf EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units?► 2,592 units► 25,920 units► 18,720 units► 129,600 unitsAns: A is correct optionWhen purchases are added to raw material opening Inventory, we get the value of:► Material consumed.► Material available for use.► Material needed.► Raw material ending inventory.Ans: B is correct optionCost accounting concepts include all of the following EXCEPT:► Planning► Controlling► Sharing► CostingAns: C is correct optionIncrease in material Inventory means:1. The ending inventory is greater than opening inventory2. The ending inventory is less than opening inventory3. Both ending and opening inventories are equal4. Can not be determinedAns: A is correct optionAccording to IASB framework, Financial statements exhibit to its users the:1. Financial position2. Financial performance3. Cash inflow and outflow analysis4. All of the given optionsAns: B is correct optionIf Sales = Rs. 800,000 appli Markup = 25% of cost What would be the value of Gross profit?Select correct option:1. Rs. 200,0002. Rs. 160,0003. Rs. 480,0004. Rs. 640,000Ans: B is correct optionWhich of the following cost is used in the calculation of cost per unit?Select correct option:1. Total production cost2. Cost of goods available for sales3. Cost of goods manufactured4. Cost of goods SoldAns: C is correct option Manufacturing entities classified the inventory in which of three kinds?Select correct option1. Material inventory, WIP inventory, finished goods inventory2. Material inventory, purchased good inventory, WIP inventory3. Materialinventory, purchased good inventory, finished goods inventory4. WIP inventory, Finished goods inventory, purchased good inventoryAns: A is correct optionCost of finished goods inventory is calculated by: Select correct option:1. Multiplying units of finished goods inventory with the cost per unit2. Dividing units of finished goods inventory with the cost per unit3. Dividing per unit cost with finished goods inventory4. Deducting total cost from finished goods inventoryAns: A is correct optionIf, COGS = Rs. 50,000 GP Margin = 25% of sales What will be the value of Sales? Select correct option:1. Rs. 200,0002. Rs. 66,6673. Rs. 62,5004. None of the given optionsAns: B is correct option17- If, Sales = Rs. 800,000, Markup = 25% of cost, what would be the value of Grossprofit?a) Rs. 200,000b) Rs. 160,000c) Rs. 480,000d) Rs. 640,000Ans: B is correct option20- In cost Accounting, abnormal loss is charged to:a) Factory overhead control accountb) Work in process accountc) Income Statementd) All of the given optionsAns: B is correct optionLong question is about Job order costing