Cost Accounting
(CA)
MCQs
1. Objectives of Cost Accounting are to
(i) ascertain cost and
(ii) control cost
(a) (i) is false and (ii) is true
(b) Both (i) and (ii) are true
(c) Both (i) and (ii) are false
(d) (i) is true and (ii) is false
2. The process of grouping the costs according to some common characteristic is known as
(a) Primary distribution
(b) Secondary distribution
(c) Classification of cost
(d) Absorption of cost
3. Match the following:
|
(i) CAS - 03 |
(a) Administrative Overheads |
|
(ii) CAS - 11 |
(b) Production and Operation Overheads |
|
(iii) CAS - 15 |
(c) Selling and Distribution Overheads |
(a) (i) - (b), (ii) - (a), (iii) - (c)
(b) (i) - (c), (ii) - (a), (iii) - (b)
(c) (i) - (b), (ii) - (c), (iii) - (a)
(d) (i) - (a), (ii) - (b), (iii) - (c)
4. Find out Labour Turnover Rate using Separation method then the no. of workers on 01/08/2018 were 760 and on 31/08/2018 were 840. During the month 08 workers left and 32 were discharged, 150 workers were recruited of which 30 were recruited because of exits and rest were recruited in accordance with the expansion plan.
(a) 5.33%
(b) 6.67%
(c) 5%
(d) 3.75%
5. The time gap between placing an order and its receipt in stock is known as ______
(a) Carrying time
(b) Lead time
(c) Over time
(d) Shortage time
6. Match the following :
|
(i) CAS - 01 |
(a) Material Cost |
|
(ii) CAS – 07 |
(b) Classification of Cost |
|
(iii) CAS – 06 |
(c) Employee Cost |
(a) (i) - (b), (ii) - (c), (iii) - (a)
(b) (i) - (a), (ii) - (b), (iii) - (c)
(c) (i) - (b), (ii) - (a), (iii) - (c)
(d) (i) - (c), (ii) - (a), (iii) - (b)
7. Match the following Terms with its meaning:
|
(i) Time Keeping |
(a) Recording arrival and departures time of workers |
|
(ii) Idle Time |
(b) Workers has been paid without any production |
|
(iii) Over time |
(c) Time spent by worker over and above normal working hours |
(a) (i) - (a), (ii) - (b), (iii) - (c)
(b) (i) - (b), (ii) - (a), (iii) - (c)
(c) (i) - (b), (ii) - (c), (iii) - (a)
(d) (i) - (c), (ii) - (a), (iii) - (b)
8. Cost Accounting includes all of the following except
(a) Profit sharing
(b) Controlling
(c) Product costing
(d) Planning
9. Match the following costs with its proper classification
|
(i) Direct cost |
(a) By Nature of Expense |
|
(ii) Administrative cost |
(b) in Relation to Cost Centre |
|
(iii) Batch |
(c) As per Function |
|
(iv) Labour cost |
(d) By Nature of Production Process |
(a) (i) – (c), (ii) - (d), (iii) - (a), (iv) - (b)
(b) (i) - (a), (ii) - (b), (iii) – (c), (iv) - (d)
(c) (i) - (b), (ii) - (c), (iii) - (d), (iv) - (a)
(d) (i) - (d), (ii) - (a), (iii) - (b), (iv) - (c)
10. Factory Overheads for the year : Rs.1,25,000
Direct Labour hour : 5,000 hours
Direct Machine Hour : 2,500 hours
Find out the Overhead Absorption Rate under Machine Hour Rate Method.
(a) Rs. 35 per machine hour
(b) Rs. 50 per machine hour
(c) Rs. 20 per machine hour
(d) Rs. 25 per machine hour
11. As per Merrick's multiple piece rate plan, no bonus is payable to a workman if his efficiency is below __________ %.
(a) 100
(b) 83
(c) 80
(d) 67
12. An analysis of time card of Mr. Dev on a machine shows that he worked 7 hours as overtime on production. The wage rate of a worker is Rs. 80 per hour and overtime is paid at the rate of 50% extra. Find out the amount of overtime premium
(a) Rs. 280
(b) Rs. 500
(c) Rs. 125
(d) Rs. 375
13. Which method is used for Reassignment of Overheads on Reciprocal Basis?
(a) Repeated distribution
(b) Step ladder
(c) Direct redistribution
(d) All (a), (b) and (c)
14. Standard time allowed for a Job is 50 hours & wage rate is Rs. 30 per hour. If Mr. C completed Job by taking 42 hours. Calculate earning of Mr. C under Halsey Bonus plan
(a) Rs. 1,380
(b) Rs. 1,260
(c) Rs. 120
(d) Rs. 1,250
15. The summation of Indirect Material, Indirect Labour and Indirect Expenses is known
(a) Prime Cost
(b) Overheads
(c) Conversion Cost
(d) All (a), (b) and (c)
16. The estimated Factory Overheads and Direct wages of TT Ltd., for a particular period are Rs. 10,00,000 and Rs. 2,00,000 respectively. It is the practice to charge overheads on the basis of Direct Wages. Find out amount of overheads charged on Job no 475 if Wages paid for Job No 475 is Rs. 5,000.
(a) Rs. 25,000
(b) Rs. 50,000
(c) Rs. 1,000
(d) Rs. 2,500
17. PP Ltd., requires 9,600 units of a certain material annually. This material is purchased from X Ltd., at Rs. 50 per unit. The cost of placing an order Rs. 60 and the annual carrying cost is Rs. 5 per unit. Find out EOQ.
(a) Rs. 480
(b) 840 units
(c) 480 units
(d) Rs. 840
18. A Ltd., had 900 units of Rs. 10 each on 01/09/2018. The purchases made during the month were :
06/09/2018 - 500 units @ Rs. 12
13/09/2018 - 600 units @ Rs. 15 and
24/09/2018 - 800 units @ Rs. 16.
What is the issue price per unit as per Weighted Average Method if the issue of 1600 units is made to the production department on 18/09/2018?
(a) Rs. 13.64
(b) Rs. 12
(c) Rs. 13.14
(d) Rs. 14.33
19. Standard output for a working week of 48 hours is 800 units, Mr. X produced 1,000 units in a particular week. Rate per unit is Rs. 20. Calculate the Total Earning of Mr. X under Taylor‟s Differential Piece Rate System.
(a) Rs. 16,000
(b) Rs. 24,800
(c) Rs. 24,000
(d) Rs. 20,000
20. Match the following items of overheads with the basis of allocation :
|
(i) Power |
(a) Number of employees |
|
(ii) Canteen Expense |
(b) Area square meter |
|
(iii) Heating |
(c) Kilowatt hours |
(a) (i) - (b), (ii) - (c), (iii) - (a)
(b) (i) - (b), (ii) - (a), (iii) - (c)
(c) (i) - (a), (ii) - (b), (iii) - (c)
(d) (i) - (c), (ii) - (a), (iii) - (b)
21. Match the following
|
(i) Actual Cost Methods |
(a) Inflated Price Method |
|
(ii) Average Cost Methods |
(b) FIFO |
|
(iii) Notional Cost Methods |
(c) Periodic Simple Average Method |
(a) (i) - (a), (ii) - (c), (iii) - (b)
(b) (i) - (b), (ii) - (c), (iii) - (a)
(c) (i) - (c), (ii) - (a), (iii) - (b)
(d) (i) - (a). (ii) - (b). (iii) - (c)
22. Salary paid to factory supervisor is
(i) Direct wage and
(ii) to be charged to costing profit and loss account
(a) (i) is false and (ii) is true
(b) Both (i) and (ii) are false
(c) (i) is true and (ii) is false
(d) Both (i) and (ii) are true
23. To avoid stoppage of production due to shortage of materials, which of the following steps be adopted?
(a) Average stock level be maintained
(b) Minimum stock level be maintained
(c) Re-order level be maintained
(d) Maximum stock level be maintained
24. If absorbed overheads are Rs. 42,380 and actual overheads are Rs. 40,000, then there is
(a) Under absorption of Rs. 2,380
(b) Over absorption of Rs. 2,830
(c) Over absorption of Rs. 2,380
(d) Over absorption of Rs. 42,380
25. The Annual carrying cost of material X is Rs. 7.2 Per unit and its total carrying cost is Rs. 18,000 p.a. If there is no requirement safety stock for material X, Find Economic Order Quantity for material X.
(a) 8,000 units
(b) 9,000 units
(c) 7,000 units
(d) 5,000 units
26. Standard output and wages for 48 hours of a week is 6,000 units and Rs. 720. Mr. P produced 6,000 units in a particular week. Rate per hour is Rs. 15. Calculate the Total Earning of Mr. P under Emerson's Efficiency Bonus Plan.
(a) Rs. 900
(b) Rs. 1,044
(c) Rs. 720
(d) Rs. 864
27. If the average consumption of an item of material is 50 units per week, minimum consumption is 25 units per week & reorder period is 4 to 6 weeks, then the Reorder Level is _________.
(a) 450 units
(b) 200 units
(c) 250 units
(d) 300 units
28. Calculate the issue price per unit for the month of August 2018 under Periodic Average Price Method.
Balance on 01/08/18 - 500 units @ Rs. 20 per unit,
Received on 05/08/18 - 800 units @ Rs. 21 per unit,
Received on 17/08/18 - 700 units @ Rs. 22 per unit and
Received on 28/08/18 - 600 units @ Rs. 23 per unit.
(a) Rs. 21.50
(b) Rs. 21.125
(c) Rs. 22
(d) Rs. 20.57
29. The summation of Direct Material, Direct Labour and Direct Expenses is known as
(a) Direct Cost
(b) Fixed Cost
(c) Overheads
(d) Factory Cost
30. Match suitable cost unit for the following
|
(i) Gold |
(a) Per thousands |
|
(ii) Petrol |
(b) Per Ten Grams |
|
(iii) Bricks |
(c) Per Litre. |
(a) (i) - (a), (ii) - (b), (iii) - (c)
(b) (i) - (b), (ii) - (c), (iii) - (a)
(c) (i) - (b), (ii) - (a), (iii) - (c)
(d) (i) - (c), (ii) - (a), (iii) - (b)
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