Cost and Managerial Accounting MCQS With Answers 71 to 80

 

Cost and Managerial Accounting

71. ____________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.

1. Cash Budget
2. Capital Expenditure Budget
3. Sales Budget
4. Overhead Budget

Correct answer: (A)
Cash Budget

72. If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average Collection Period will be

1. 30 days
2. 61 days
3. 90 days
4. 120 days

Correct answer: (B)
61 days

73. Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:-

1. Rs. 2,500
2. Rs. 2,000
3. Rs. 4,000
4. Rs. 3,500

Correct answer: (A)
Rs. 2,500

74. Responsibility Centre can be categorised into:

1. Cost Centres only
2. Profit Centres only
3. Investment Centres only
4. Cost Centres, Profit Centres and Investment Centres

Correct answer: (D)
Cost Centres, Profit Centres and Investment Centres

75. Calculate the prime cost from the following information:
Direct material purchased: Rs. 1,00,000
Direct material consumed: Rs. 90,000
Direct labour: Rs. 60,000
Direct expenses: Rs. 20,000
Manufacturing overheads: Rs. 30,000

1. Rs. 1,80,000
2. Rs. 2,00,000
3. Rs. 1,70,000
4. Rs. 2,10,000

Correct answer: (C)
Rs. 1,70,000

76. Bin Card is a

1. Quantitative as well as value wise records of material received, issued and balance;
2. Quantitative record of material received, issued and balance
3. Value wise records of material received, issued and balance
4. a record of labour attendance

Correct answer: (B)
Quantitative record of material received, issued and balance

77. Calculate EOQ (approx.) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs. 10 per order
Purchase price: Rs. 100 per unit
Carrying cost: 5%

1. 310
2. 400
3. 290
4. 300

Correct answer: (A)
310

78. Calculate the value of closing stock from the following according to Weighted Average method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units

1. Rs. 765
2. Rs. 805
3. Rs. 786
4. Rs. 700

Correct answer: (C)
Rs. 786

79. Labour turnover means:

1. Turnover generated by labour
2. Rate of change in composition of labour force during a specified period
3. Either of the above
4. Both of the above

Correct answer: (B)
Rate of change in composition of labour force during a specified period

80. Overhead refers to:

1. Direct or Prime Cost
2. All Indirect costs
3. only Factory indirect costs
4. Only indirect expenses

Correct answer: (B)
All Indirect costs