Costing SEM V
Important Objectives
1) ________ of
the following items is not included in preparation of cost sheet.
(a) Sales
commission
(b) Interest paid
(c)
Depreciation on plant and machinery
(d)
carriage inward
2) A company
has to pay Rs 10,000 per unit royalty to the designer of a product which it
manufacturers and sells. The royalty charges would be classified as a ____ .
(a) Direct expense
(b)
Production overhead
(c)
Administrative overhead
(d)
Selling overhead
3) Prime cost
is ––––––––– .
(a) Total direct costs only
(b)
Total indirect costs only
(c) Total
non production costs
(d)
Total production costs
4) ________ of
the following is not a component of prime cost.
(a) Direct
materials
(b)
Direct labour
(c) Direct
expenses
(d) indirect overheads
5) Overheads
consist of all the following except ______
(a)
Indirect materials
(b)
Factory utilities
(c) Direct labour
(d)
Indirect labour
6) –––––––––
is most likely to a fixed cost.
(a)
Cost of Material
(b)
Labour
(c) Rent
(d)
Commission
7) ______ of
the following is not an element of works overhead
(a) Sales manager’s salary
(b)
Plant manager’s salary
(c)
Factory repairman’s wages
(d)
Product inspector’s salary
8) Director’s
remuneration and expenses form a part of ______
(a)
Production overhead
(b) Administrative
overhead
(c)
Selling overhead
(d)
Distribution overhead
9) Which of
the following is NOT a selling overheads
(a) Insurance to cover sold goods while in
transit
(b)
Royalty on sales
(c)
carriage outward
(d)
distribution of samples
10) In the cost
sheet, Income from sale of empty containers used for dispatch of the goods
produced shall be ________
(a) added
to cost of production
(b) deducted from cost
of production
(c) added
to sales
(d)
ignored
11) In the cost
sheet, abnormal costs like accidents shall be _______
(a) added
to cost of production
(b)
deducted from cost of production
(c)
deducted from sales
(d) ignored
12) Direct
materials + Direct labour + Direct expenses = ---------
(a) Work
cost
(b)
cost of Production
(c) Cost
of sales
(d) Prime cost
13) Prime cost +
Factory overheads = ---------
(a) Fixed
cost
(b) Works cost
(c) Cost
of production
(d)
Cost of goods sold
14) The opening
stock of finished good is Rs 50,000, closing stock of finished goods is Rs
1,00,000 and the cost of goods manufactured is Rs 2,00,000. What is cost of
goods sold?
(a) Rs
2,00,000
(b)
Rs 2,50,000
(c) Rs
1,00,000
(d) Rs 1,50,000
15) Process of
ascertainment of cost is known as
––––––
(a) Costing
(b)
Cost reporting
(c) Cost
Control
(d)
None of above
16) Cost which
can be identified easily is called as
––––––
(a) Direct cost
(b)
Indirect Cost
(c)
Manufacturing cost
(d)
Fixed cost
17) Cost which is
unaffected by the change in output is called as ––––––
(a) Period
cost
(b)
Indirect Cost
(c)
Manufacturing cost
(d) Fixed cost
18) Cost of
rectification is ––––––
(a) Factory overheads
(b)
Office overheads
(c)
Selling overheads
(d)
Direct cost
19) The aggregate
of all direct costs is termed as ––––––
cost.
(a) Prime
(b)
Works
(c) Total
(d)
Production
20) –––––– is
not excluded while preparing a cost sheet.
(a) Property tax on office building
(b)
interest on capital
(c)
Goodwill written off
(d)
Provision for tax
21) Remuneration
paid to technical director is a part of ––––––.
(a) Works cost
(b)
Prime cost
(c)
Administrative overhead
(d)
all of the above
22) The cost
which does not involve any cash outlay is
––––––
(a) Imputed cost
(b)
Sunk cost
(c)
Relevant cost
(d)
Book cost
23) Cost
accounting is directed towards the need of –––––– .
(a) Internal users
(b)
External users
(c) Government
(d)
Income tax Department
24) Gold in
Jewellery is the example of –––––– .
(a) Basic Raw material
(b)
Raw Material
(c) Semi
finished goods
(d)
Finished goods
25) Salary of
works manager is –––––– .
(a) Factory overheads
(b)
Selling overheads
(c) Office
Overheads
(d)
Prime Cost
26) In
Reconciliation statement, Expenses shown only in Financial Accounts are
(a) added to financial profit
(b)
deducted from financial profit
(c)
ignored
(d)
added to costing profit
27) In
Reconciliation statement, Expenses shown only in cost Accounts are
(a) added
to financial profit
(b) deducted from
financial profit
(c)
ignored
(d)
deducted from costing profit
28) In
Reconciliation statement, transfers to reserves are
(a) added to financial profit
(b)
deducted from financial profit
(c)
ignored
(d)
added to costing profit
29) In
Reconciliation statement, incomes shown only in financial accounts are
(a) added
to financial profit
(b) deducted from
financial profit
(c)
ignored
(d)
deducted from costing profit
30) In
Reconciliation statement, closing stock undervalued in financial accounts is
(a) added to financial profit
(b)
deducted from financial profit
(c)
ignored
(d)
added to costing profit
31) In
Reconciliation statement, closing stock overvalued in financial accounts
is
(a) added
to financial profit
(b) deducted from
financial profit
(c)
ignored
(d)
deducted from costing profit
32) In
Reconciliation statement, opening stock overvalued in financial accounts is
(a) added to financial profit
(b)
deducted from financial profit
(c)
ignored
(d)
added to costing profit
33) In
Reconciliation statement, opening stock undervalued in financial accounts is
(a) added
to financial profit
(b) deducted from
financial profit
(c)
ignored
(d)
deducted from costing profit
34) In
Reconciliation statement, depreciation overcharged in financial accounts
is
(a) added to financial profit
(b)
deducted from financial profit
(c)
ignored
(d)
added to costing profit
35) In
Reconciliation statement, depreciation undercharged in financial accounts is
(a) added
to financial profit
(b) deducted from
financial profit
(c)
ignored
(d)
added to costing profit
36) Interest on
investment increases ––––––
(a)
Assets
(b) Financial profit
(c)
ignored
(d)
Costing profit
37) Over
valuation of closing stock in cost accounts ––––––
(a)
Decreases costing profit
(b) increases costing
profit
(c)
increases financial profit
(d)
Decreases financial profit
38) Notional Rent is taken in –––––– .
(a)
Financial Accounts
(b) Cost Accounts
(c)
Balance sheet
(d)
ignored
39) Interest on
Bank deposit is ––––––.
(a)
Credited to costing profit and loss A/c
(b) Credited to
financial profit and loss A/c
(c)
Debited to costing profit and Loss A/c
(d)
Debited to financial profit and Loss A/c
40) Dividend paid
on share capital is ––––––
(a)
Credited to costing profit and loss A/c
(b)
Credited to financial profit and loss A/c
(c)
Debited to costing profit and Loss A/c
(d) Debited to
financial profit and Loss A/c
41) Continuous stock taking is a part of
b) Perpetual inventory
c) ABC Analysis
d) None of the above
c) Purchase requisition
d) Materials requisition form
43) The costs of goods acquired from suppliers including incoming freight or transportation costs are _____
a) Purchasing costs
b) Ordering
costs
c) Stock-out
costs
d) Carrying cost
44) The costs of preparing, issuing, and placing orders, plus receiving and inspecting the items included in order is ____
a) Purchasing
costs
b) Ordering costs
c) Stock-out
costs
d) Carrying
costs
a) Purchasing
costs
b) Carrying costs
c) Opportunity
costs
d) Interest
costs
a) Quality
costs
b) Labour
costs
c) Ordering
costs
d) Carrying costs
47) Material requisition is meant for ______
b) Supply of material from stores
c) Sale of material
d) Storage of material
48) Material is issued by store keeper against
b) Material order
c) Goods received note
d) Purchase requisition
b) Store Department
c) Finance Department
d) Sales department
50) Under Perpetual inventory control ––––––.
b) Stock is verified periodically
c) Stock is verified at the end of every quarter
d) Stock is verified at half yearly
51) Order should be placed with the supplier
when the inventory touches ––––––.
b) Maximum level
c) Re-order level
d) Average level
52) ABC analysis is a technique developed for ––––––.
b) Inventory management
c) WIP control
d) Finished goods control
53) Economic order quantity refers to ––––––.
b) Quantity to be used economically
c) Quantity of material to be maintained
d) Quantity of material to be recorded
54) Idle time is ___
b) time spent by workers in office
c) time spent by workers without work
d) time spent by workers on their job
55) Time booking refers to
b) time spent by workers in the factory
c) time spent by workers without work
56) Labour turnover is caused by ––––––.
b) Bad working conditions
c) Dissatisfaction with job
d) All of above
57) The method which does not differentiate between efficient and inefficient workers is ––––––
b) Piece rate method
c) Halsey method
d) Rowan Plan
58) The statutory provision regarding deduction from payroll pertain to ––––––
b) Professional tax
c) Provident fund
d) all of the above
59) Under Time Rate System, the wages is equal to ––––––.
b) Piece completed x Piece rate
c) Actual output x Actual productive hours
d) None of these
b) Administration overhead
c) Selling overhead
d) Distribution overhead
61) Overhead expenses can be classified
according to ______
a) Functions
b) Elements
c) Behaviour
d) All of the above
62) Electricity charges are allocated on the basis of ––––––.
a) Number of light points
c) Labour hours
d) Factory cost
a) Fixed overheads
c) Semi variable overheads
d) None of above
64) Total of indirect material, indirect labour, and indirect expenses is called as ––––––.
a) Overhead cost
b) Prime
cost
c) Works cost
d) Chargeable cost
65) When overheads recovered in costing are more than actual overheads incurred it is called as ––––––.
a) Over absorption
b) Under absorption
c) Proper
absorption
d) None of the
above
66) Holiday pay is apportioned on the basis of ––––––.
a) No.
of workers
b) Direct wages
c) No. of workers
and Direct wages
d) None of these
67) Appropriate basis of apportionment of material handling charges is ––––––
a) Material in opening stock
b) Material consumed
c) Materials in WIP
d) Material in Closing stock
68) Employees welfare expenses are allocated on the basis of –––
a) Machine
hours
b) Number of employees
c) Prime cost
d) Labour hours
69) Cost accounting is directed towards the need
of ___________.
a)
Government,
b)
External users,
c)
Internal users,
d)
Shareholders
70) The method in which the goods purchased first are issued first is known as ___________________
a) Weighted Average Method
b) First In First Out Method
c) Last In First In Method
d) None of Above
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very helpfull sir Thanxs alot sir for QB
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