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Online MCQ Assignment
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Match the statement in Column I with the appropriate statement in Column II :
Column – I——————————Column – II
(1) Bad Debt is ——————-(A) not a distinct method of Cost Accounting
(2) Flexible Budget is————(B) a method used in Construction Industry
(3) Transfer Price—————–(C) allows goal congruence
(4) Uniform Costing is———–(D) a selling overhead
(5) Contract Costing is———–(E) prepared for different levels of capacity utilization
Answer:
(1) — (D) a selling overhead
(2) — (E) prepared for different levels of capacity utilization
(3) — (C) allows goal congruence
(4) — (A) not a distinct method of Cost Accounting
(5) — (B) a method used in construction industry.
State whether the following statements are True or False :
Q1: Standard Costing may not be suitable for small concerns.
Ans: True
Q2: Cost Accounting is a branch of Financial Accounting.
Ans: False
Q3: Labour Turnover is the movement of people out of the organisation.
Ans: False
Q4: Transfer Pricing has significance for the purpose of measurement of divisional performance.
Ans: True
Q5: Bincard shows the value of a material at any movement of time.
Ans: False
Fill up the blanks suitably :
Q1: ABC analysis is made on the basis ___________.
Ans: consumption value / value of usage
Q2: The success of the ___________ costing is based on mutual belief and understanding.
Ans: uniform
Q3: A Budget is a statement that is always prepared ___________ to a defined period of time.
Ans: prior
Q4:___________ is the difference between the actual sales and the break-even sales.
Ans: Margin of Safety
Q5: Activity Based Costing is based on the identification of ___________.
Ans: activities
In the following cases one out of four answers is correct. You are required to indicate the correct answer and give brief workings
Q1: After inviting tenders for supply of raw materials, two quotations are received as follows— Supplier A Rs.2•20 per unit, Supplier B Rs.2•10 per unit plus Rs.2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—
(a) 22,000 units
(b) 21,000 units
(c) 20,000 units [Ans]
(d) None of the above.
Q2: Normal rate per hour for worker A in a factory is Rs.5.40. Standard time per unit for the worker is one minute. Normal piece rate per unit for the worker is
(a) Rs.0•90
(b) Rs.0•09 [Ans]
(c) Rs.0•11
(d) None of the above
Q3: In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs.3,60,000. Joint costs allocated to product A is
(a) Rs.1,20,000
(b) Rs.1,80,000 [Ans]
(c) Rs.60,000
(d) None of the these
Q4: A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are
(a) 2,81,250
(b) 5,62,500 [Ans]
(c) 1,87,500
(d) None of the above
Q5: The cost per unit of a product manufactured in a factory amounts to Rs.160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs.per unit.
(a) Rs.145
(b) Rs.152 [Ans]
(c) Rs.150
(d) Rs.140