MGT402 Cost & Management Accounting mcq's fall

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Which of the following formula is used to calculate the Number of units manufactured?
► Sold units - Units of closing finished goods inventory + Units of opening finished goods inventory
► Sold units + Average units of finished goods inventory
► Sold units - Average units of finished goods inventory
► Sold units + Units of closing finished goods inventory - Units of opening finished goods inventory

Which of the following is correct?
► Units sold= Opening finished goods units + Units produced – Closing finished goods units
► Units Sold = Units produced + Closing finished goods units - Opening finished goods units
► Units sold = Sales + Average units of finished goods inventory
► Units sold = Sales - Average units of finished goods inventory

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
The appropriate journal entry to transfer the cost of completed units from the Work in Process account would involve a credit to Work in Process and a debit to which of the following accounts?
► Income Summary
► Raw Materials Inventory
► Finished Goods
► Manufacturing Summary
Which of the given is CORRECT for behavior of Fixed Cost?
► Increases per unit, remains constant in total
► Decreases per unit, remains constant in total
► Increases per unit, decreases in total
► Increases per unit, increases in total also
Inventories of manufacturing concerns are classified into____________ categories.
► One
► Two
► Three
► Four
Indirect labor cost is charged to which of the following?
► It is charged to work in process account
► It is charged to factory overhead account
► It charged to selling overhead control account
► It charged to administration overhead control account
What type of information CANNOT get from bin card?
► It provides the information for Reorder level
► It provides the information for Economic order quantity
► It provides the information for Maximum daily consumption
► It provides the information for Cost of material consumed
In which of the situation volume variance will give unfavorable result?
► Actual factory overhead is less than absorbed factory overhead
► Actual factory overhead is greater than absorbed factory overhead
► Absorbed factory overhead greater than budgeted factory overhead for actual volume
► Absorbed factory overhead less than budgeted factory overhead for actual volume
If Budgeted FOH for actual volume is 740,000 and Actual factory overhead is Rs. 710,000 then difference of both will be:


► Volume variance of Rs. 30,000
► Spending variance of Rs. 30,000
► Overhead variance of Rs. 30,000
► Idle capacity variance of Rs. 30,000

Question No: 31 ( Marks: 1 ) - Please choose one
With reference to cost of production report, which of the following is NOT included in Quantity Schedule?
► Unit put into process
► Equivalent units produced
► Units transferred out to subsequent department
► Units reconceived from preceding department
Question No: 32 ( Marks: 1 ) - Please choose one
What will the effect on unit cost if there is Normal Loss during production?
► Per unit cost remains constant
► Per unit cost increases
► Per unit cost decreases
► Nothing can be determined with the given statement

Question No: 33 ( Marks: 1 ) - Please choose one
Accounting entry of closing balance can be recorded for:
► Income a/c and Expenses a/c
► Liability a/c and Owner’s equity a/c
► Asset a/c and Liability a/c
► Liability a/c and Expenses a/c
Question No: 35 ( Marks: 3 )
Greenwood Petroleum Company started with 67,000 barrels this period and had 15,000 gallons (40% complete with respect to conversion costs) in ending work-in-process. Determine the equivalent units of production for conversion costs.
Question No: 36 ( Marks: 5 )
Ali Company fixed standard output of an operation as 15 pieces per hour. For the first week of June a worker’s record shows the following:
Days Pieces produced Hours Worked Time Allowed
Monday 100 8 6
Tuesday 110 8 7
Wednesday 160 8 8
Thursday 180 8 9
Friday 200 8 10

Standard Hourly rate of the worker is Rs. 10
Required:
Prepare schedule showing worker’s earnings under Taylor’s Differential Piece Rate system:
Taylor’s Differential Piece Rate system is used as follows:
• 80% of the piece rate for below standard output
• 120% of the piece rate for at or above standard output
Question No: 37 ( Marks: 5 )
The following information relates to a management consultancy organization:
Salary cost per hour (Rs) Hours Worked for Task XYZ
Senior consultants 400 54
Junior consultants 250 110
Overheads absorption rate per hour
applied to the hours worked of senior
and junior consultants 200 ?

The organization adds 25% to total cost to arrive at the final fee to be charged to a client.
Required:
What is the final fee to be charged for task XYZ and show complete working also?