MGT402 Current Quiz

Question # 1 of 15

Which of the following cost is used in the calculation of cost per unit?



Select correct option:
Total production cost
Cost of goods available for sales
Cost of goods manufactured
Cost of goods Sold


Question # 2 of 15

Which of the following is the best definition of a by-product?

Select correct option:
A by-product is a product arising from a process where the wastage rate is higher than a defined level
A by-product is a product arising from a process where the sales value is insignificant by comparison with that of the main product or products
A by-product is a product arising from a process where the wastage rate is unpredictable

A by-product is a product arising from a process where the sales value is significant by comparison with
that of the main product or products

Question # 3 of 15

The abbreviation LIFO is:

Select correct option:
Large integrated financial organization
Least interesting financial option
The last in first out method
None of the given options

Question # 4 of 15
Which of the following statements is/are correct?

Select correct option:
A by-product is a product produced at the same time as other products which has a
relatively low volume compared with the other products
.
Since a by-product is a saleable item it should be separately costed in the process
account,and should absorb some of the process costs.

Cost incurred prior to the point of separation are known as common or joint costs.
A by-product is a product produced at the same time as other products which has a
relatively high volume compared with the other products.


Question # 5 of 15
Examples of industries that would use process costing include all of the following EXCEPT


Select correct option:
Beverages
Food
Hospitality
Petroleum


Question # 6 of 15

Under LIFO method the value of issues is close to:
Select correct option:
Second hand price
Current market price
Historical cost
All of given options

Question # 7 of 15

Cost of Goods Manufactured can be calculated as follow


Select correct option:
Total factory Cost Add Opening Work in process inventory Less Closing Work in
process inventory
Total factory Cost Less Opening Work in process inventory Add Closing Work in
process inventory
Total factory Cost Less Opening Work in process inventory Less Closing Work in
process inventory
Total factory Cost Add Opening Work in process inventory Add Closing Work in process
Inventory

Question # 8 of 15

The Term Maximum Level Represents:

Select correct option:
The maximum stock level indicates the maximum quantity of an item of material which
can be held in stock at any time.
The maximum stock level indicates the maximum quantity of an item of material which
cannot be held in stock at any time.
The Average stock level indicates the maximum quantity of an item of material which
can be held in stock at any time.
The Available stock level indicate

Question # 9 of 15

Cost accounting department prepares _____________ that helps the in preparing final accounts.

Cost sheets

Cost of goods sold statement

Cost of production Report

Question # 10 of 15

The main purpose of cost accounting is to
Select correct option:
Maximize profits
Help in inventory valuation
Provide information to management for decision making
Aid in the fixation of selling price

Question # 11 of 15

The Term Mimimum Level Represents.

Select correct option:
This represents the quantity below which the stock of any item should not be allowed to
Fall
This represents the quantity below which the stock of any item should be allowed to fall
This is the estimated time period in number of days or in weeks or in months.
This is the Lead time period in number of days or in weeks or in months.
Question # 12 of 15

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

Question # 13 of 15

The components of the prime cost are:

Select correct option:
Direct Material + Direct Labor + Other Direct Cost
Direct Labor + Other Direct Cost + FOH
Direct Labor + FOH
None of the given options

Question # 14 of 15

Which of the following would be considered a major aim of a job order costing system?

Select correct option:
To determine the costs of producing each job or lot
To compute the cost per unit
To include separate records for each job to track the costs
All of the given options

Question # 15 of 15

Select correct option:
worker is not penalized even if his performance does not exceed 80 per cent of the High
Task.
worker is not penalized even if his performance does not exceed 70 per cent of the High
Task.
worker is not penalized even if his performance does not exceed 50 per cent of the High
Task.
worker is not penalized even if his performance does not exceed 30 per cent of the High
Task.:

Another Quiz

Question # 1 of 15 ( Start time: 09:26:58 PM ) Total Marks: 1
While constructing a Break even chart, the gap between sales line and variable cost line shows which of the following?
Select correct option:

Fixed cost
Break even point
Contribution margin
Variable cost

Question # 2 of 15 ( Start time: 09:27:17 PM ) Total Marks: 1
Over applied FOH will always result when a predetermined FOH rate is applied and:
Select correct option:

Production is greater than defined capacity
Actual overhead costs are less than budgeted overhead
Budgeted capacity is less than normal capacity
Actual overhead incurred is less than applied Overhead

Question # 3 of 15 ( Start time: 09:27:47 PM ) Total Marks: 1
Consider the following data for the month of May: Sales 150 units,Opening units 120 units,Closing 80 units Based on the data, production in May will have to be?
Select correct option:

150 units
50 units
190 units
110 units

Question # 4 of 15 ( Start time: 09:27:54 PM ) Total Marks: 1
In which of the following would there be a difference between financial and managerial accounting?
Select correct option:

Users of the information
Purpose of the information
Flexibility of practices
All of the given options

Question # 5 of 15 ( Start time: 09:28:09 PM ) Total Marks: 1
Taylor's Differential Piece Rate Plan uses-----------piece rates.
Select correct option:

Three
Two
Four
Five

Question # 6 of 15 ( Start time: 09:28:23 PM ) Total Marks: 1
Consider the following data for the month of April: Closing stock 80 units,Production 280 units,Sales 330 units Based on the data, the opening stock for April will have to be:
Select correct option:

50 units
410 units
70 units
130 units

Question # 7 of 15 ( Start time: 09:29:26 PM ) Total Marks: 1
Which of the following is / are element / s of production payroll?
Select correct option:

Direct labor force wages
Administrative wages
Selling wages
All of the given options

Question # 8 of 15 ( Start time: 09:29:43 PM ) Total Marks: 1
The point at which joint product costs become separately identifiable is known as the:
Select correct option:

Split-off point
Relative sales value point
Joint processing cost
None of the given options

Question # 9 of 15 ( Start time: 09:29:59 PM ) Total Marks: 1
While calculating the EOQ, number of orders is calculated by:
Select correct option:

Multiplying the required units with cost per order
Dividing required unit by ordered quantity
Multiplying the required units with ordered quantity
Multiplying the ordered quantity with cost per order

Question # 10 of 15 ( Start time: 09:30:30 PM ) Total Marks: 1
The Process of cost apportionment is carried out so that:
Select correct option:

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 centers

Question # 11 of 15 ( Start time: 09:30:38 PM ) Total Marks: 1
The Term Mimimum Level Represents.
Select correct option:

This represents the quantity below which the stock of any item should not be allowed to fall
This represents the quantity below which the stock of any item should be allowed to fall
This is the estimated time period in number of days or in
weeks or in months.
This is the Lead time period in number of days or in
weeks or in months.

Question # 12 of 15 ( Start time: 09:31:00 PM ) Total Marks: 1
The components of the prime cost are:
Select correct option:

Direct Material + Direct Labor + Other Direct Cost
Direct Labor + Other Direct Cost + FOH
Direct Labor + FOH
None of the given options

Question # 13 of 15 ( Start time: 09:31:24 PM ) Total Marks: 1
Which one of the following factors would cause budgeted revenue to be less than the expected demand?
Select correct option:

Excess capacity exists
Abundant resources are available
Demand exceeds capacity
Excess supply of labor exists

Question # 14 of 15 ( Start time: 09:31:35 PM ) Total Marks: 1
A method by which the first goods to be received are said to be the first to by sold
Select correct option:

LIFO
AVCO
FIFO
WASH

Question # 15 of 15 ( Start time: 09:32:15 PM ) Total Marks: 1
Which of the following statement is TRUE about FOH applied rates?
Select correct option:

They are used to control overhead costs
They are based on actual data for each period
They are predetermined in advance for each period
None of the given