Which of the following best describe piece rate system?
► The increased volume of production results in decreased cost of production
► The increased volume of production in minimum time
► Establishment of fair standard rates
► Higher output is a result of efficient management
Which of the followin is NOT an assumption of the basic economic-order quantity model?
► Annual demand is known
► Orderin cost is known
► Carryin cost is known
► Quantity discounts are available
All of the following are deducted from gross Profit to calculate Operating income EXCEPT:
► Selling expenses
► Advertising expenses
► Administrative expenses
► Financial expenses
The salary of factory clerk is treated as:
► Direct labor cost
► Indirect labor cost
► Conversion cost
► Prime cost
The components of the conversion cost are:
► Direct Material + Direct Labor + Other Direct Cost
► Direct Labor + FOH
► Prime Cost + FOH+ Other Direct Cost
► Prime Cost + FOH
In cost accounting, Avoidable loss is charged to which of the following?
► Factory over head control account
► Work in process control account
► Marketing overhead control account
► Administration overhead control account
Which of the following functions are fulfilled by Goods Received Note?
i. Provides information to update the inventory records on receipt of goods
ii. Provides information to check the quantity on the supplier’s invoice
iii. Provides information to check the price on the supplier’s invoice
► (i) only
► (i) and (ii) only
► (i) and (iii) only
► (ii) and (iii) only
Overhead absorption rate (OAR) can be calculated as:
► Direct labor cost /Direct Labor hours
► Estimated FOH/ Direct Labor hours
► Prime cost/ Estimated FOH
► Prime cost/ Direct labor cost
Which of the following would be considered as factory overhead using a job order cost system?
► Direct materials
► Direct labor
► Depreciation on factory buildings
► Salesperson's salary
► Salesperson's salary
If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
What will be the COMMISION?
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500
With reference to cost of production report, cost accounted for as follows is also known as:
► Cost reconciliation
► Bank reconciliation
► Cash reconciliation
► Capital reconciliation
Identify units transferred out with the help of given data:
| | Units |
| Units still in process (100%material, 75% conversion ) | 4,000 |
| Lost units | 2,000 |
| Units started in process | 50,000 |
► 6,000 units
► 44,000 units
► 52,000 units
► 56,000 units
The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:
► Normal capacity
► Designed capacity
► Direct Labor hours
► Machine hours
The cost that is subject to actual payment or will be paid for in future is called:
► Fixed cost
► Step cost
► Explicit cost
► Imputed cost
Cost of material consumed under LIFO costing method is Rs. 6,000. Conversion Cost is Rs. 16,500. 1,000 units of the product were manufactured out of which 800 @ Rs. 30 units sold. There were no beginning and ending inventories of work in process and finished goods.
Required: Calculate per unit cost with the help of given information.
► Rs. 22.50
► Rs.16.50
► Rs. 6.00
► Rs. 28.13
Calculate total salary received with the given data.
| Salary | Rs.5000 |
| Per Piece commission | 10 % per piece |
| Unit sold | 700 pieces |
| Price per piece | Rs. 10 |
► Rs. 5,100
► Rs. 5,000
► Rs. 5,600
► Rs. 5,700
Which cost accumulation procedure is best suited to a continuous mass production process of similar units?
► Job order costing
► Process costing
► Standard costing
► Actual costing
Which of the following method of inventory valuation is not recommended under IAS 02?
► LIFO
► FIFO
► Weighted Average
► Both LIFO & FIFO
Which of the following are basic inventories for a manufacturing concern?
► Indirect materials, goods in process, and raw materials
► Finished goods, raw materials, and direct materials
► Raw materials, goods in process, and finished goods
► Raw materials, factory overhead, and direct labor
If the cost per equivalent unit is Rs. 1.60. The equivalent units of output are 50,000. The WIP closing stock is 10,000 units, 40% completed. What will be the value of closing stock?
► Rs. 9,600
► Rs. 80,000
► Rs. 16,000
► Rs. 6,400
Consider the following data:
| Salary | Rs.5000 |
| Per Piece commission | 10 % per piece |
| Unit sold | 700 pieces |
| Price per piece | Rs. 10 |
| Amount of commission received | ? |
► Rs. 100
► Rs. 500
► Rs. 600
► Rs. 700
Question No: 32 ( Marks: 1 ) - Please choose one
|  Lost units (Normal loss)
| 500 units |
| Units received from preceding department | 13,500 units |
| Units completed in this department | 11,750 units |
Required: Identify units still in process with the help of above data.
► 1,250 units
► 14,000 units
► 12,250 units
► 1,750 units
The journal entry of Material purchase on credit under perpetual inventory system is:
► Inventory account (Dr) Material account (Cr)
► Account payable (Dr.) Purchases account (Cr)
► Inventory account (Dr) Account payable account (Cr)
► Purchases account (Dr) Accounts payable account (Cr)
A direct cost is identified by which of the following feature?
► Its behavior
► Its traceability
► Its controllability
► Its relevance
INCOME BEFORE INTEREST AND TEX
OTHER INCOME
OPERATING INCOME
GROSS PROFIT
Pay roll sheet include except
Gross income
Net income
Tax rebate
Statuary and non statuary
Inventory of Rs. 96,000 was purchased during the year. The cost of goods sold was Rs. 90,000 and the ending inventory was Rs. 18,000. What was the inventory turnover ratio for the year?
► 5.0 times
► 5.3 times
► 6.0 times
► 6.4 times
Discuss the advantages and disadvantages of the group bonus scheme?
Write the formula of abortion and discuss it base?
