Match the statement in Column I with the appropriate statement in Column II:
|Column I||Column II|
|(i) Apportionment of Overheads|
(ii) Equivalent Production
(iii) Point Ranking Method
(iv) Output Costing
(v) Non Integrated Accounts
|(A) Job Evaluation|
(B) Reciprocal Method
(C) Cost Ledger Accounts
(D) Process Costing
(E) Coal Ind
|Column I||Column II|
State whether the following statements are True or False :
Q1: Fixed cost per unit remains constant irrespective of the number of units of output.
Q2: An efficient worker always gets more bonus under Rowan Plan than under 50% Halsey Plan.
Q3: A bin card shows the quantity and value of a stores item.
Q4: Cost Ledger Control Account is maintained in the costing books while General Ledger Adjustment Account is maintained in the financial books.
Q5: In LIFO method of valuing inventory, the company has to suffer loss due to accumulation of old stocks and consequent spoilage and obsolescence.
Fill up the blanks suitably:
Q1:_____________centre is defined as a business entity’s segment by which both revenues are earned and costs are incurred.
Q2:__________ Level of stores inventory is maximum usage multiplied by maximum lead time.
Q3: The most appropriate cost unit for pricing and costing goods transport is ________.
Q4: Where the production is as per the requirements of the customers, ___________is the method of costing used.
Ans: Job Costing
Q5: Where there are two raw materials A and B, and the total material mix variance is favourable and if A has a favourable mix variance, then B will have a mix variance that is ____________.
In the following cases one out of four answers is correct. You are required to indicate the correct answer and give brief workings
Q1: T Ltd. uses pre-determined overhead rate of Rs.15 per labour hour. The actual labour hours are 5750 and the actual overhead cost is Rs.85,000. There is
(a) Rs.1,250 over absorption +
(b) Rs.1,250 under absorption
(c) Rs.1,000 over absorption
(d) Rs.1,000 under absorption
Q2: A chemical process has a normal yield of 90%. In a period, 5000 kgs of material were introduced and there was an abnormal loss of 150 kgs. The quantity of good production is
(a) 4850 kgs
(b) 4650 kgs
(c) 4500 kgs
(d) 4350 kgs [Ans]
Q3: If break-even sales is 60% of current sales and profit is Rs.60,000, then the amount of contribution will be
(c) Rs.1,50,000 [Ans]
Q4: The following information is given for the next year: Budgeted Sales = 5,00,000 units Finished Goods: Closing Stock = 1,50,000 units; Opening Stock = 80,000 units. Equivalent units of WIP: Closing Stock= 60,000 units; Opening Stock = 50,000units. The number of equivalent units produced would be
(a) 5,80,000 units [Ans]
(b) 5,50,000 units
(c) 5,00,000 units
(d) 5,75,000 units
Q5: A production process has the capacity to produce either 4,000 units of A or 3,500 units of B or 5,000 units of C. Only one product can be made in a production period. The contributions per unit of A, B and C are Rs. 10, Rs. 11 and Rs. 8 respectively. The opportunity cost of A would be
(d) Rs.40,000 [Ans]