Inter PN-8 Cost Accounting Quiz 10

1. The technique of differential cost is adopted when:

2. P/V ratio will increase if the:

3. Marginal Costing technique follows the following basic of classification:

4. Variable cost -

5. which of the following factors responsible for change in the break even point?

6. When sales exceeds production (in units) then profit under:

7. When sales and production (in units) are same then profits under :

8. Fixed costs are treated as :

9. The difference between absorption costing and marginal costing is in regard to the treatment of:

10. The cost of a product under marginal costing system includes:

11. A transport company is running five buses between two towns, which are 50 kms apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:

12. In case of joint products, the main objective of accounting of the cost is to apportion the joint costs incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs. 3,60,000. Joint costs allocated to product A is:

13. Which of the following organisations should not be advised to use service costing?

14. 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

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 Rs.1690 and incurred overheads of Rs. 694. What was the prime cost of the job?

16. 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)?

17. 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

18. In process costing, if an abnormal loss arises, the process account is generally

19. A process costing system for J Co used an input of 3,500Kg of materials at Rs.20 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 Rs.5per Kg. Output was 2,950 Kg. What is the value of the output?

20. Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs. 4.50 per unit. Additional material at Rs.1.25per unit was added in process. Labour and overheads were Rs. 6.25 per completed unit and Rs. 2.50 per unit incomplete. If 11,750 completed units were transferred out, what was the closing inventory in Process B?

21. In process costing, a joint product is

22. Absolute Tonne-Km is an example of:

23. Cost units used in power sector is called:

24. Composite cost unit for a hospital is:

25. Operating costing is applicable to: