Inter PN-8 Cost Accounting Quiz 12

1. Cost Accounting Records include:

2. CAS‑18 deals with:

3. The purpose of CAS (Cost Accounting Standards) is to:

4. Which of the following is NOT considered in marginal costing?

5. When preparing a cost sheet, which of the following is excluded from prime cost?

6. In a manufacturing process, normal loss is treated as:

7. Which of the following best describes the difference between cost control and cost reduction?

8. The primary objective of Cost Accounting is to:

9. The key elements of Activity Based Budgeting are -

10. Which of the following is not a benefit of ABC ?

11. Steps in ABC Include -

12. In activity based costing , costs are accumulated by activity. Such Accumulated Amounts are called -

13. When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is:

14. In element-wise classification of overheads, which one of the following is not included —

15. Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:-

16. The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then Break Even Point in Rs. will be:

17. Following information is available of XYZ Limited for quarter ended June, 2023

Fixed cost                          Rs. 5,00,000

Variable cost                      Rs. 10 per unit

Selling price                        Rs. 15 per unit

Output level                        1,50,000 units

What will be amount of profit earned during the quarter using the marginal costing technique?

18.             is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items.

19. .............is a summary of all functional budgets in a capsule form.

20. A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:

21. In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own

22. The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit.

23. After inviting tenders for supply of raw materials, two quotations are received as follows—

Supplier P Rs. 2.20 per unit, Supplier Q Rs. 2.10 per unit plus Rs. 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—

24. A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs?

25. A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8

Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units

The margin of safety, expressed as a percentage of budgeted sales,is: