MIDTERM EXAMINATION
Spring 2010
MGT402- Cost & Management Accounting (Session - 4)
Time: 60 min
Marks: 47
Student Info | |
StudentID: | |
Center: | OPKST |
ExamDate: | 5/26/2010 12:00:00 AM |
For Teacher's Use Only | |||||||||
Q No. | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total |
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Q No. | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | |
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Q No. | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | |
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Q No. | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | |
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Q No. | 33 | 34 | 35 | 36 | 37 | ||||
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Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following is added in purchases in order to get the value of Net purchases? ► Purchases returns
► Carriage inward
► Trade discount
► Rebates
Question No: 2 ( Marks: 1 ) - Please choose one
If, Gross profit = Rs. 40,000GP Margin = 25% of sales
What will be the value of cost of goods sold?
► Rs. 160,000
► Rs. 120,000
► Rs. 40,000
► Can not be determined
Question No: 3 ( Marks: 1 ) - Please choose one
Cost of finished goods inventory is calculated by: ► Deducting total cost from finished goods inventory
► Multiplying units of finished goods inventory with the cost per unit
► Dividing units of finished goods inventory with the cost per unit
► Multiplying total cost with finished goods inventory
Question No: 4 ( Marks: 1 ) - Please choose one
Financial statements are prepared: ► Only for publicly owned business organizations
► For corporations, but not for sole proprietorships or partnerships
► Primarily for the benefit of persons outside of the business organization
► Depending upon only the need of the decision maker
Question No: 5 ( Marks: 1 ) - Please choose one
Over which of the following is the manager of the Profit center likely to have control?I. Selling process
II. Controllable costs
III. Apportioned head office costs
IV. Capital investment in the center
► I, II and III
► I, II and IV
► I and II
► I, II, III and IV
Question No: 6 ( Marks: 1 ) - Please choose one
While transporting petrol, a little quantity will be evaporated; such kind of loss is termed as: ► Normal Loss.
► Abnormal Loss.
► Incremental Loss.
► Incremental abnormal loss.
Question No: 7 ( Marks: 1 ) - Please choose one
While deducting Income Tax from the gross pay of the employee, the employer acts as a (an) _________________for Income Tax Department. ► Agent of his own company
► Paid tax collection agent
► Unpaid tax collection agent
► None of the given options
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is a cost that changes in proportion to changes in volume? ► Fixed cost
► Sunk cost
► Opportunity cost
► None of the given options
Question No: 9 ( Marks: 1 ) - Please choose one
The salary of factory clerk is treated as: ► Direct labor cost
► Indirect labor cost
► Conversion cost
► Prime cost
Question No: 10 ( Marks: 1 ) - Please choose one
Period costs are: ► Expensed when the product is sold
► Included in the cost of goods sold
► Related to specific period
► Not expensed
Question No: 11 ( Marks: 1 ) - Please choose one
Weighted average rate per unit is calculated by which of the following formula? ► Cost of goods issued/number of units issued
► Total cost/total units
► Cost of goods manufactured/closing units
► Cost of goods sold/total units
Question No: 12 ( Marks: 1 ) - Please choose one
A store sells five cases of soda each day. Ordering costs are Rs. 8 per order, and soda costs Rs. 3 per case. Orders arrive four days from the time they are placed. Daily holding costs are equal to 5% of the cost of the soda. What is the EOQ for soda? ► 4 cases
► 8 cases
► 10 cases
► 23 cases
Question No: 13 ( Marks: 1 ) - Please choose one
Direct Labor is an element of: ► Prime cost
► Conversion cost
► Total production cost
► All of the given options
Question No: 14 ( Marks: 1 ) - Please choose one
Basic pay + bonus pay + overtime payment is called: ► Net pay
► Gross pay
► Take home pay
► All of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
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 employees
Question No: 16 ( Marks: 1 ) - Please choose one
All of the following are cases of labor turnover EXCEPT: ► Workers appointed against the vacancy caused due to discharge or quitting of the organization
► Workers employed under the expansion schemes of the company
► The total change in the composition of labor force
► Workers retrenched
Question No: 17 ( Marks: 1 ) - Please choose one
Nelson Company has following FOH detail. Budgeted (Rs.) Actual (Rs.)
Production Fixed overheads 36,000 39,000
Production Variable overheads 9,000 12,000
Direct labor hours 18,000 20,000
What would be the amount of under/over applied FOH
► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000
Question No: 18 ( Marks: 1 ) - Please choose one
In a job-order cost system, indirect labor costs would be recorded as a debit to: ► Finished Goods
► Manufacturing Overhead
► Raw Materials
► Work in Process
Question No: 19 ( Marks: 1 ) - Please choose one
A direct cost is identified by which of the following feature? ► Its behavior
► Its traceability
► Its controllability
► Its relevance
Question No: 20 ( Marks: 1 ) - Please choose one
The following information is available for ABC Co. Marketing expenses | Rs. 300,000 |
Ending inventory of finished goods | Rs. 90,000 |
The cost of goods sold | 500 % of Marketing expense |
The cost of goods available for sale | ? |
► Rs. 300,000
► Rs. 1,590,000
► Rs. 90,000
► Rs. 390,000
Question No: 21 ( Marks: 1 ) - Please choose one
The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize: ► Conversion cost
► FOH cost
► Inventory cost
► Prime cost
Question No: 22 ( Marks: 1 ) - Please choose one
If management decides to buy in large quantities by placing few orders, it means ► Higher carrying cost and lower ordering cost
► Lower carrying cost and lower ordering cost
► Higher carrying cost and higher ordering cost
► Lower carrying cost and higher ordering cost
Question No: 23 ( Marks: 1 ) - Please choose one
Under Financial Accounting, what will be the impact of abnormal loss on the overall per unit cost? ► Per unit cost remain unchanged
► Abnormal loss has no relation to unit cost
► Per unit cost will increase
► Per unit cost will decrease
Question No: 24 ( Marks: 1 ) - Please choose one
Consider the given information.Estimated FOH | Rs. 100,000 |
Estimated Direct labour hours | 50,000 Hours |
Over applied FOH | Rs. 50,000 |
Under applied FOH | Rs. 15,000 |
Overhead absorption rate | ? |
► Rs. 2.00
► Rs. 1.00
► Rs. 0.30
► Rs. 5.00
Question No: 25 ( Marks: 1 ) - Please choose one
Blanket rate is also known as: ► Plant wide rate
► Departmental rate
► Over head absorption rate
► Factory overhead rate
Question No: 26 ( Marks: 1 ) - Please choose one
Budgeted factory overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 25,000 and variable rate Rs. 2.00 per hour. Required:
Identify the amount of Budgeted Fixed Factory overhead.
► Rs. 65,000
► Rs.15, 000
► Rs. 20,000
► Rs. 12,500
Question No: 27 ( Marks: 1 ) - Please choose one
Job Code XYZ required total cost direct labour was Rs. 3,500 and direct labour was paid hourly @ Rs. 18. Production overhead was estimated at rate of Rs. 15 per direct labour hour. Required:
Identify factory overhead cost with the help of above data.
► Rs. 2917 Approximately
► Rs. 194 Approximately
► Rs. 233 Approximately
► Rs. 270Approximately
Question No: 28 ( Marks: 1 ) - Please choose one
How costs can be accumulated in process-costing systems? ► Costs can be accumulated by product nature
► Costs can be accumulated by job nature
► Costs can be accumulated by department
► All of the given options
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the given cost is NOT appeared in Cost of Production Report to calculate total cost? ► Material cost
► Labour cost
► Factory overhead cost
► None of the given options
Question No: 30 ( Marks: 1 ) - Please choose one
Department I of ABC manufacturing Company transferred 18,000 units to next department and unit cost of material, Labour and FOH is Rs. 2.00, Rs. 5.00 and Rs. 2.50 respectively. Identify the cost transferred to next department with the help of given data.
► Rs. 36,000
► Rs. 45,000
► Rs. 90,000
► Rs. 171,000
Question No: 31 ( Marks: 1 ) - Please choose one
D Corporation uses process costing to calculate the cost of manufacturing Crunchies. During the month 12,500 units were completed and transferred out. 1,500 units remained in work in process at 25 percent completed. Required: Identify how many equivalent units were produced?
► 12,500 units
► 12,875 units
► 14,250 units
► 12,125 units
Question No: 32 ( Marks: 1 ) - Please choose one
If a company uses a predetermined rate for the application of factory overhead, the idle capacity variance is the: ► Difference of absorbed factory overhead and budgeted factory overhead for capacity attained
► Over or under applied variable cost element of overheads
► Difference in budgeted costs and actual costs of fixed overheads items
► Difference in budgeted cost and actual costs of variable overheads items
Question No: 33 ( Marks: 1 ) - Please choose one
Identify the FOH rate on the basis of machine hour?Budgeted production overheads | Rs.280,000 |
actual machine hours | 70,000 hours |
Actual production overheads | Rs.295,000 |
► Rs. 4.00
► Rs. 4.08
► Rs. 4.210
► Rs. 4.35
Question No: 34 ( Marks: 1 ) - Please choose one
Overhead absorption rate (OAR) can be calculated as: ► Direct labor cost /Direct Labor hours
► Estimated FOH/ Direct Labor hours
► Prime cost/ Estimated FOH
► Prime cost/ Direct labor cost
Question No: 35 ( Marks: 3 )
Barley Ltd produces a certain food item in a manufacturing process. On 1st November there was no opening stock in process. During November, 700 units of material were put in to process, with a cost of Rs, 20,000. Direct labor cost in November was Rs.15; 000.production overhead is absorbed at the rate of 300% of direct labor costs. Closing stock on 30th November consisted of 200 units which were 100% completed as to materials and 80% completed as to labor and over head.Required: Calculate the quantity of units completed and transfer-out
Question No: 36 ( Marks: 5 )
The higher rate of labor turnover results in increased cost of production. Discuss the Effect of Labor Turnover.Question No: 37 ( Marks: 5 )
| | Units |
Units transferred to next department | 40,000 |
Units still in process (all material, 2/3 labour & FO H) | 8,000 |
Abnormal loss (1/2 complete as to material, Labour and FOH) | 1,000 |
Following costs were added during the process.
Materials | Rs.40,500 |
Labour | 101,700 |
Factory overhead | 50,500 |
Required:
You are required to calculate equivalent units of material, labour and factory overhead and unit cost of material, labour and factory overhead.
Another Paper
We had to determine equivalent production from given data - 3 marks
Advantages n disadavantages of group bonus schemes -5marks
Prepare quantity schedule n find equivalent production from given data - 5marks
Another Paper
total questions : 37
MCQs :35
Long questions : 3 (5 marks each)
Q1. What is cost processing and what are its characteristics?
Q2. What is group incentive system, explain?
Q3. A numerical question to find out I dont remember what?
Another Paper
We had to determine equivalent production from given data - 3 marks
Advantages n disadavantages of group bonus schemes -5marks
Prepare quantity schedule n find equivalent production from given data - 5marks
Another Paper
total questions : 37
MCQs :35
Long questions : 3 (5 marks each)
Q1. What is cost processing and what are its characteristics?
Q2. What is group incentive system, explain?
Q3. A numerical question to find out I dont remember what?
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