Cost and Managerial Accounting MCQS With Answers

 

Cost and Managerial Accounting

91. Conversion cost includes cost of converting ______________ into ______________

1. Raw material, WIP
2. Raw material, Finished goods
3. WIP, Finished goods
4. Finished goods, Saleable goods

Correct answer: (B)
Raw material, Finished goods

92. Stores Ledger 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: (A)
Quantitative as well as value wise records of material received, issued and balance;

93. Calculate the value of closing stock from the following according to LIFO 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: (B)
Rs. 805

94. If overtime is resorted to at the desire of the customer, then the overtime premium:

1. should be charged to costing profit and loss account;
2. should not be charged at all
3. should be charged to the job directly
4. should be charged to the highest profit making department

Correct answer: (C)
should be charged to the job directly

95. Which of the following is not a method of cost absorption?

1. Percentage of direct material cost
2. Machine hour rate
3. Labour hour rate
4. Repeated distribution method

Correct answer: (D)
Repeated distribution method

96. Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?

1. Rs. 6562.50
2. Rs. 12,250.00
3. Rs. 14,437.50
4. Rs. 25,375.00

Correct answer: (C)
Rs. 14,437.50

97. Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information.

Miles travelled	636,500
Tonnes carried	2,479
Number of drivers	20
Hours worked by drivers	35,520
Tonnes miles carried	375,200
Cost incurred	562,800

1. Rs .88
2. Rs 1.50
3. Rs 15.84
4. Rs28, 140

Correct answer: (B)
Rs 1.50

98. A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

1. Master budget
2. Zero base budget
3. Functional budget
4. Flexible budget

Correct answer: (D)
Flexible budget

99. The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to Rs. 70,000 then amount charge from Profit and Loss Account will be:

1. Rs. 55,000
2. Rs. 85,000
3. Rs. 45,000
4. Rs. 1,85,000

Correct answer: (B)
Rs. 85,000

100. Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

1. can not
2. can
3. may or may not
4. must

Correct answer: (A)
can not