Inter PN-8 Cost Accounting Quiz 15

1. When marginal cost and average cost are equal, then:

2. If selling price per unit increases, the break-even point will:

3. In marginal costing, fixed costs are treated as:

4. In operating costing, composite cost units are used when:

5. Which of the following is not a component of operating cost for transport?

6. Which of the following is a characteristic of operating costing?

7. Operating costing is most suitable for which of the following?

8. A truck runs 100 km daily with a 5-tonne load one way and returns empty. Operating 25 days/month. What is the total tonne-km?

9. A hotel has 40 rooms, average occupancy 75%. Monthly operating cost ₹12,00,000. What is cost per room-day?

10. A bus runs 80 km with 40 passengers. Return trip is 60 km with 20 passengers. What are the total passenger-km?

11. Process costing is used in:

12. Abnormal loss units are valued at:

13. Normal loss is expected and is:

14. A company processes 5,000 units. Normal loss = 10%. Actual output = 4,300 units. Scrap from normal loss has no value. What is the abnormal loss in units?

15. A company has two processes. Process I transfers 5,000 units to Process II. Process II loses 2% normal loss on its input. In process II, materials are added at start, conversion equally. If Process II starts 5,000 units, what is the good output expected?

16. Which of the following is not a feature of process costing?

17. Cost to date ₹3,00,000, Estimated cost to complete ₹1,00,000, Contract price ₹5,00,000. Estimated profit?

18. Profit-Volume (P/V) Ratio improves when:

19. Selling price = ₹50, Variable cost = ₹30, Fixed cost = ₹40,000. Calculate break-even sales (units).

20. If sales increase by ₹25,000 and the P/V ratio is 40%, how much does profit increase?

21. If Margin of safety = ₹1,20,000; P/V ratio = 30%. What will be the Profit = ?

22. Selling price = ₹100, Variable cost = ₹60, Fixed cost = ₹1,60,000. Profit desired ₹40,000. What is the required sales?

23. If a company's operating capacity increases from 60% to 80%, while fixed costs remain the same, how will the Break-Even Point (BEP) be affected?

24. Sales is ₹1,00,000, Variable cost is ₹60,000 and Fixed cost is ₹40,000. What is the P/V ratio?

25. Which is NOT a component of material cost variance?