MGT402 Cost and Management Accounting Quiz May 17,2010

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MY QUIZ....

Quiz no. 2

1.
The abbreviation LIFO is:
Select correct option:



Large integrated financial organization

Least interesting financial option

The last in first out method

None of the given options


2.
Costs which are constant for a relevant range of activity and rise to new constant level once that range exceeded is called:
Select correct option:



A fixed cost

A variable cost

A mixed cost

A step cost


3.
A cost centre is
Select correct option:



A unit of product or service in relation to which costs are ascertained

An amount of expenidure attributable to an activity

A production or service location,function,activity or item of equipment for which costs are accumulated

A centre for which an indvidual budget is drawn up


4.
Which of the following is sales force payroll incentive?
Select correct option:



Commission

Shift allowance

Over time payment

Bonus


5.
All of the following are terms used to denote Factory Overheads EXCEPT:
Select correct option:



Factory burden

Factory expenses

Manufacturing overhead

Conversion costs


6.
Which of the following is not true
Select correct option:



Managerial accounting information is prepared for internal users

Preparation of Managerial accounting information is not a legal requirement

There are specific standards of acceptability for managerial accounting

The structure of managerial accounting practice is relatively flexible


7.
In which of the following would there be a difference between financial and managerial accounting?
Select correct option:



Users of the information

Purpose of the information

Flexibility of practices

All of the given options


8.
Opportunity cost is the best example of:
Select correct option:



Sunk Cost

Standard Cost

Relevant Cost

Irrelevant Cost


9.
If labor is satisfied with high wages it may ultimately lead to:
Select correct option:



Increased production and productivity

Increased efficiency

Reduced labor and overhead costs

All of the given options


10.
The main purpose of cost accounting is to
Select correct option:



Maximize profits

Help in inventory valuation

Provide information to management for decision making

Aid in the fixation of selling price


11.
Sales are Rs. 450,000. Beginning finished goods were Rs. 23,000. Ending finished goods are Rs. 30,000. The cost of goods sold is Rs. 300,000. What is the cost of goods manufactured?
Select correct option:



Rs. 323,000

Rs. 330,000

Rs. 293,000

None of the given options


12.
Which of the following cost is used in the calculation of cost per unit?
Select correct option:



Total production cost

Cost of goods available for sales

Cost of goods manufactured

Cost of goods Sold


13.
Under Periodic Inventory system Purchase of inventory is treared as:
Select correct option:



Assets

Expense

Income

Liability


14.
A high inventory turnover may indicate:
Select correct option:



An efficient use of the investment in inventory

A high risk of stock-outs

Stock position of store room

All of the given options


15.
Which of the following is correct?
Select correct option:



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

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ye krdia highlight........

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