Final PN-16 Strategic Cost Management Quiz 8

1. XYZ Ltd. Plans to introduce a new product and issuing the target cost approach. Projected sales revenue is Rs. 80,00,000 (Rs. 50 per unit) and target costs are Rs. 56,00,000. What is the desired profit per unit?

2. When you wait until the manufacture of a product has been completed and then record all of the related issuances of inventory from stock that were required to create the product, it is called

3. Marketing department of an organisation estimates that 60,000 of new mixers could be sold annually at a price of Rs. 70 each. To design, develop and produce these new mixers an investment of Rs. 40,00,000 would be required. The company desires a 15% return on investment (ROI). Given these data, the target cost to manufacture, sell, distribute and service one mixer will be

4. For a Learning Curve percentage of 72%, the time to be taken to complete the 4th unit of a 12-unit job involved in the assembly line, if the initial unit requires 80 hours, will be

5. ABC Limited is facing downfall in its demand. Marketing team has suggested to reduce the selling price by 10% to compete in the market. Variable cost is 72% of the current selling price. What will be the P/V Ratio after reducing the price by 10%.

6. ABC Limited has current PBIT of Rs. 19.20 lakhs on total assets of ₹96 lakhs. The company has decided to increase assets by Rs. 24 lakhs, which is expected to increase the operating profit before depreciation by Rs. 8.40 lakhs. There will be a net increase in depreciation by Rs. 4.80 lakhs. This will result in ROI

7. The P/V ratio of a firm is 50% and the margin of safety is 40%. BEP of the firm at a sales volume of Rs. 50,00,000 will be

8. Which of the following is not a benefit of Activity Based Costing

9. The following figures are extracted from the books of a company: Budgeted O/H Rs. 10,000 (Fixed Rs. 6,000, Variable Rs. 4,000) Budgeted Hours 2000 Actual O/H Rs. 10,400 (Fixed Rs. 6,100, Variable Rs. 4,300) Actual Hours 2100 Variable O/H cost variance and Fixed O/H cost variance will be:

10. The profit volume ratio of DEF Ltd. is 30%, while the margin of safety is 40%. If fixed cost of the company is Rs. 1,80,000, what will be its profit (net)?

11. Cost driver means

12. The information relating to the direct material cost of a company is as follows: Standard price per unit Rs. 7.20 Actual quantity purchased in units 1600 Standard quantity allowed for actual production in units 1450 Material price variance on purchase (Favourable) Rs. 480 What is the actual purchase price per unit

13. A company has the capacity of production of 80000 units and presently it sells 20000 units at Rs. 100 each. The demand is sensitive to selling price and it has been observed that every reduction of Rs. 10 in selling price the demand is doubled. What should be the target cost at full capacity it profit margin on sales is taken at 25%?

14. Total fixed overhead variance can be defined as

15. Which of the following is not a method of transfer pricing?

16. The break-even point of a manufacturing company is Rs.2,50,000. Fixed cost is Rs.50,000. Variable cost is Rs.14 per unit. The PV ratio will be:

17. ABC Company uses a throughput accounting system. The details of product X per unit are as follows Selling Price - Rs. 40 Material cost- Rs. 12, Conversion Cost -Rs. 18, Time on bottle neck resource - 7 Minutes. The return per hour for product X is:

18. Which one of the following is not a spreadsheet?

19. Which one of the following is a Key feature of SAS language?

20. #Script Ends – is related to which type of programming language?

21. Analysis of a dataset has revealed the fact that profit of a business has reduced for the financial year 2021-22. What category of data analytics it comes under?

22. Which of the following is related to Financial Data Analytics?

23. Which of the following has no relation to Business Intelligence?

24. Prescriptive Analytics is very important because –

25. Which of the following statement is incorrect?