Inter PN-12 Management Accounting Quiz 2

1. The break-even point is the point at which:

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

3. A company manufactures 500 units of product AX the material cost to manufacture is ₹ 1,50,000, Labour cost ₹2,65,000. Material reordering cost is ₹4,500, Material handling cost is ₹2,500 Material order – 35, Material movement – 20.Total Material cost under Activity based costing is.

4. A company operates an activity based costing (ABC) system to attribute its overhead costs to cost objects. In its budget for the year-ending 31st August, 2022. The company expected to place a total of 2000 purchase orders at a total cost of ₹1,00,000. This activity and its related costs were budgeted to occur at a constant rate throughout the budget year which is divided into 13 four week periods.During the four-week period ended 30th June 2021, a total of 200 purchase orders were placed at a cost of ₹ 9,000. The over recovery of these costs for the four-week period was

5. Fast Ltd. manufactures three types of products A, B, and C following ABC System. During a period, the company incurred ₹73,000 as inspection cost and it was worked for 10, 20 and 9 production runs respectively for producing products A, B, and C. The inspection costs for product B under the ABC system was

6. X Company uses activity-based costing for Product B and Product D. The total estimated overhead cost for the parts administration activity pool was ₹5,50,000 and the expected activity was 2000 part types. If Product D requires 1200 part types, the amount of overhead allocated to product D for parts administration would be:

7. A company uses traditional standard costing system. The inspection and set-up costs are actually ₹1,760 against a budget of ₹2,000. ABC system is being implemented and accordingly the number of batches is identified as the cost driver for inspection and set up. The budgeted production is 10,000 units in batches of 1,000 units whereas actually 9,000 units were produced in 11 batches. The cost per batch under ABC system will be

8. An Activity-Based Costing, an inspection of the product is a level activity:

9. A homogeneous cost pool is one that:

10. Samsung an appliance manufacturer is developing a new line of ovens that uses controlled-laser technology. Research and testing costs associated with the new ovens is said to arise from a:

11. Under activity-based costing, ‘material ordering’ is considered as —

12. Plant depreciation is an example of which activity-level group?

13. Which of these in NOT a Cost driver for Customer Service Activity ?

14. Which of these in NOT a Cost driver for Marketing and sales Function ?

15. Which of these is NOT a cost driver For the Activity Design of products, services & Processes ?

16. A cost driver -

17. All of the following are examples of batch level activities except:

18. Which of the following tasks is not normally associated with an activity-based costing system?

19. Painting the product would be an example of which activity level groups

20. Which of the following is the main cost driver of customer order processing activity?

21. The basis of apportionment of overheads which takes into account the profitability of various departments is called:

22. should be subtracted from net product revenues instead of an arbitrary and illogical apportionment.

23. Cost of maintaining a building is:

24. Process of Cost allocation under Activity Based Costing is

25. Which of the following is different in ABC when compared to traditional costing?