Final PN-16 Strategic Cost Management Quiz 11

1. When Minimax and Maximin criteria matches then

2. A Firm is said to achieve Condition of equilibrium when

3. An operation has a 90% learning curve and the first unit produced took 28 minutes. The labour cost is Rs.20 per hour. How much should the second unit cost?

4. The constraints in a linear programming Model are -

5. If project A has a net present value (NPV) of Rs.30,00,000 and project B has an NPV of Rs.50,00,000, what is the opportunity cost if project B is selected?

6. To obtain the break-even point in rupee sales value, total fixed costs are divided by

7. Which of the following Quality Cost is incurred in the process of uncovering defects?

8. A company that is a price-taker would most likely use which of the following methods?

9. Down time due to defect in quality is an example of

10. The expected time for an activity of Project LM is 20 days. If the most likely and pessimistic time are 19 days and 28 days, what will be the variance of the activity?

11. The important step(s) required for simulation approach in solving a problem is/are

12. Which one of the following is true for Blue Ocean Strategy?

13. M/s Zimbra Limited sold 55,000 units of its product at Rs. 80 per unit. P/V Ratio is 20%. If total Fixed Cost is Rs. 6,40,000, the Margin of Safety (Units) is

14. S Ltd. manufactures a product whose time for the first unit is 1000 hours. It experience a learning curve of 80%, What will be the total time taken in hours for unit 5 to 8?

15. A factory has a key resource (bottleneck) of Facility A which is available for 31,300 minutes per week. The time taken by per unit of Product X and Y in Facility A are 5 minutes and 10 minutes respectively. Last week’s actual output was 4750 units of product X and 650 units of Product Y. Actual factory cost was Rs.78,250. The throughput cost for the week would be:

16. The break-even point of a manufacturing company is Rs.1,60,000. Fixed cost is Rs.48,000. Variable cost is Rs.₹ 12 per unit. The PV ratio will be

17. A learning curve is a function

18. By making and selling 9,000 units of a product, a company makes a profit of Rs.10,000, whereas in the case of 7,000 units, it would lose Rs.10,000 instead. The number of units to break-even is

19. In CPA (Critical Path Analysis) which of the following is not a correct step in sequence?

20. In the context of Critical Path Analysis, the portion of the float of an activity which cannot be consumed without affecting adversely the float of the subsequent activities is called

21. A company produces a product which is sold at a price of Rs.80. Its Variable cost is Rs.32. The company’s Fixed cost is Rs.11,52,000 p.a. The company operates at a margin of safety of 40%. The total sales of the company is:

22. 1200 units of microchips are required to be sold to earn a profit of Rs.1,06,000 in a monopoly market. The fixed cost for the period is Rs.74,000. The contribution in the monopoly market is as high as 3/4th of its variable cost. Determine the target selling price per unit.

23. What is the name given to a budget that has been prepared by re-evaluating activities and comparing the incremental costs of those activities with their incremental benefits?

24. A particular job MB requires 800 kgs. of a material. 500 kgs. of the particular material is currently in stock. The original price of the material was Rs.300 but current resale value of the same has been determined as Rs.200. The current replacement price of the material is Re. 0.80 per kg., what will be the relevant cost of material for job MB?

25. Which of the following is/are not the features of Jedox tool?

26. In cost-plus pricing, the markup consists of

27. PQR Ltd., a manufacturer of components for XYZ, has a capacity to produce 4 Lakh units. The market demand is sensitive to the sale price and the company could sell 1 Lakh units at a price of Rs.5,000 each. The demand thereafter would double for each 500 per unit fall in the selling price. If the company expects a minimum margin of 25%, what would be the Target Cost per unit for the company to sell at full capacity utilization?

28. Learning Curve is also known as

29. Analysis of a dataset has revealed the fact that profit of a business has reduced for the financial year 2024-25. What category of data analytics it comes under?

30. A 100% Learning Curve implies that

31. A PERT network has only two activities on its critical Path. The Standard Deviation of these activities are 6 and 8 respectively. What is the Standard Deviation of the Project completion time?

32. The product of XYZ company is sold at a fixed price of Rs.1,500 per unit. As per company’s estimate, 500 units of the product is expected to be sold in the coming year. If the value of investments of the company is Rs.15 lakh and it has a target ROI of 15%, the target cost would be:

33. The Break Even Sales of GXT Ltd., a manufacturing company, is Rs.3,75,000, while its fixed cost is Rs.1,12,500. If the Margin of Safety is 40%, what will be its Profit?