Q.1
"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
Q.2
Which of the following organisations should not be advised to use service costing?
Q.3
In process costing, if an abnormal loss arises, the process account is generally.
Q.4
"Which of the following statements is/are correct?
1. A materials requisition note is used to record the issue of direct material to a specific job.
2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost.
3. The job costing method can be applied in costing batches"
Q.5
"A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order should the following budgets be prepared?
(1) Sales budget
(2) Cash budget
(3) Production budget
(4) Purchase budget
(5) Finished goods inventory budget"
Q.6
"S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?"
Q.7
Most suitable basis for apportioning insurance of machine would be:
Q.8
Blanket overhead rate is:
Q.9
The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.
Q.10
"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units. "
Q.11
A company's break even point is 6,000 units per annum. The selling price is Rs 90 per unit and the variable cost is Rs 40 per unit. What are the company's annual fixed costs?
Q.12
"Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information.
Miles travelled 636,500
Tonnes carried 2,479
Number of drivers 20
Hours worked by drivers 35,520
Tonnes miles carried 375,200
Cost incurred 562,800"
Q.13
"The following information is available for the W hotel for the latest thirty day period.
Number of rooms available per night 40
Percentage occupancy achieved 65%
Room servicing cost incurred Rs 3900
The room servicing cost per occupied room-night last period, to the nearest Rs, was:"
Q.14
A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)?
Q.15
A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?
Q.16
State which of the following are the characteristics of service costing.
1. High levels of indirect costs as a proportion of total costs
2. Use of composite cost units
3. Use of equivalent units
Q.17
"Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.
If 11,750completed units were transferred out, what was the closing inventory in Process B?"
Q.18
A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs 25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5 per Kg. Output was 2,950 Kg. What is the value of the output?
Q.19
AT Co makes a single product and is preparing its material usage budget for next year Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%. The material usage budget for next year is
Q.20
"During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working.
What was the standard cost per labour hour?"
Q.21
In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________.
Q.22
Capital gearing ratio is ___________.
Q.23
A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs 10 per hour Under the Rowan Plan, he gets an hourly wage of Rs 12 per hour For the same saving in time, how much he will get under the Halsey Plan?
Q.24
Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15000 units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully passed the quality control check. The production budget for X for March, in units is:
Q.25
A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:
Q.26
A company manufactures a single product for which cost and selling price data are as follows:
Selling price per unit - Rs 12
Variable cost per unit - Rs 8
Fixed cost for a period - Rs 98,000
Budgeted sales for a period - 30,000 units
The margin of safety, expressed as a percentage of budgeted sales,is:
Q.27
"Which of the following would explain an adverse variable production overhead efficiency variance?
1 Employees were of a lower skill level than specified in the standard
2 Unexpected idle time resulted from a series of machine breakdown
3 Poor Quality material was difficult to process"
Q.28
Costs associated with the labour turnover can be categorised into:
Q.29
"Calculate workers left and discharged from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method No of workers replaced during the quarter is 80"
Q.30
"From the following information, calculate the extra cost of material by following EOQ:
Annual consumption = 45000 units
Ordering cost per order = Rs 10
Carrying cost per unit per annum = Rs 10
Purchase price per unit = Rs 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk"
Q.31
Which of the following is an abnormal cause of Idle time:
Q.32
Overhead refers to:
Q.33
Allotment of whole item of cost to a cost centre or cost unit is known as:
Q.34
If difference in costs is $7000 and difference in machine hours of is $18000, then slope coefficient would be
Q.35
CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is
Q.36
A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
Q.37
"Calculate the value of closing stock from the following according to FIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"
Q.38
Cause and effect relationship that exists between change in total cost level and change in level of activity, is measured with help of
Q.39
"Calculate workers recruited and joined from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method andSeparation method No of workers replaced during the quarter is 80"
Q.40
If overtime is resorted to at the desire of the customer, then the overtime premium:
Q.41
Which of the following is not a method of cost absorption?
Q.42
Service departments costs should be allocated to:
Q.43
"BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is"
Q.44
The actual output of 162,500 units and actual fixed costs of Rs 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs 18,000 over budget. What was the budget variable cost per unit?
Q.45
"Calculate the value of closing stock from the following according to LIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"
Q.46
"Calculate the value of closing stock from the following according to Weighted Average method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 450

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"
Q.47
In adjustment issues of costing, database must contain reliable measure of
Q.48
Cost of abnormal wastage is:
Q.49
Cost that has elements of variable and fixed costs at same time is
Q.50
If difference in costs is $32000 and slope coefficient is 0.40, then difference in machine hours would be
0 h : 0 m : 1 s