Cost and Managerial Accounting MCQS With Answers 101 to 110

 

Cost and Managerial Accounting

101. Calculate cost of sales from the following:
Net Works cost: Rs. 2,00,000
Office & Administration Overheads: Rs. 1,00,000
Opening stock of WIP: Rs. 10,000
Closing Stock of WIP: Rs. 20,000
Closing stock of finished goods: Rs. 30,000
There was no opening stock of finished goods.
Selling overheads: Rs. 10,000

1. Rs. 2,70,000
2. Rs. 2,80,000
3. Rs. 3,00,000
4. Rs. 3,20,000

Correct answer: (B)
Rs. 2,80,000

102. In case of rising prices (inflation), FIFO method will:

1. provide lowest value of closing stock and profit
2. provide highest value of closing stock and profit
3. provide highest value of closing stock but lowest value of profit
4. provide highest value of profit but lowest value of closing stock

Correct answer: (B)
provide highest value of closing stock and profit

103. From the following information, calculate the extra cost of material by following EOQ:
Annual consumption: = 45000 units
Ordering cost per order: = Rs. 10
Carrying cost per unit per annum: = Rs. 10
Purchase price per unit = Rs. 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk.

1. No saving
2. Rs. 2,00,000
3. Rs. 2,22,010
4. Rs. 2,990

Correct answer: (D)
Rs. 2,990

104. Calculate workers recruited and joined from the following:
Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80.

1. 112
2. 80
3. 48
4. 64

Correct answer: (A)
112

105. AT Co makes a single product and is preparing its material usage budget for next year. Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year.
Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%
The material usage budget for next year is

1. 8,000 Kg
2. 9,840 kg
3. 10,000 Kg
4. 10,160 Kg

Correct answer: (C)
10,000 Kg

106. BDL Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its sales budget for the same year shows the following sales values.

March	60,000
April	70,000
May	55,000
June	65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 2013 is

1. Rs 60,532
2. Rs 61,120
3. Rs 66,532
4. Rs 86,620

Correct answer: (A)
Rs 60,532

107. A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs?

1. Rs. 120
2. Rs. 2,40,000
3. Rs. 3,00,000
4. Rs. 5,40,000

Correct answer: (C)
Rs. 3,00,000

108. _______________ is also known as working capital ratio.

1. Current ratio
2. Quick ratio
3. Liquid ratio
4. Debt-equity ratio

Correct answer: (A)
Current ratio

109. Following information is available of XYZ Limited for quarter ended June, 2013
Fixed cost Rs. 5,00,000
Variable cost Rs. 10 per unit
Selling price Rs. 15 per unit
Output level 1,50,000 units

What will be amount of profit earned during the quarter using the marginal costing technique?

1. Rs. 2,50,000
2. Rs. 10,00,000
3. Rs. 5,00,000
4. Rs. 17,50,000

Correct answer: (A)
Rs. 2,50,000

110. Element/s of Cost of a product are:

1. Material only
2. Labour only
3. Expenses only
4. Material, Labour and expenses

Correct answer: (D)
Material, Labour and expenses