Inter PN-8 Cost Accounting Quiz 13

1. In Rowan Plan, the bonus is calculated based on:

2. Which plan shares wages based on time saved, with fixed percentage to worker?

3. A worker is paid under the Rowan Plan. Standard Time = 20 hours, Time Taken = 16 hours, Rate = ₹50/hour. What are the total earnings?

4. A company had 1,200 employees at the beginning of July and 1,400 at the end. During the month: 50 workers left voluntarily, 30 were discharged, and 100 workers were recruited, but only 40 were replacements. What is the Labour Turnover Ratio using the Separation Method?

5. A worker’s standard time is 10 hours; actual time taken is 8 hours; wage rate is ₹50/hour. Bonus under Halsey Plan is:

6. Which of the following is NOT a part of employee cost?

7. A company has the following inventory data: Re-order level = 1,500 units; Re-order quantity = 1,200 units; Minimum consumption = 80 units/day; Maximum consumption = 120 units/day; Lead time = 10 to 15 days. What is the Maximum Level of inventory (in units)?

8. In setting quantitative levels of inventory, which is correct sequence (from highest to lowest)?

9. In inventory control, “Danger level” indicates:

10. Inventory has slow moving material not used for year, what should be done ?

11. If minimum stock (safety stock) is 500 units, lead time is 10 days, average usage 100 units/day, what is reorder level?

12. A company orders 5,000 units of material. Ordering cost per order ₹200. Carrying cost per unit per year is ₹5. What is the EOQ?

13. Which of the following should NOT be included in Employee Cost (CAS-7)?

14. Which of the following is a direct material cost as per CAS-6?

15. A company purchases raw material worth ₹1,00,000. Freight inward is ₹5,000, and handling charges ₹2,000. As per CAS‑6, material cost is:

16. Joint costs incurred before separation point are dealt under:

17. Which of the following is not covered under CAS-1: Classification of Cost?

18. If a direct expense becomes abnormally high due to emergency (e.g., courier), how is it treated?

19. A contractor pays ₹25,000 as a one-time fee to use a patented method for a single job. How should this cost be treated?

20. Budgeted overhead = ₹1,50,000; Budgeted machine hours = 30,000; Actual hours = 28,000; Actual overhead = ₹1,35,000. Was overhead over or under-absorbed?

21. A company has two departments: Dept A and Dept B. Absorption rates: Dept A = ₹60/hr, Dept B = ₹50/hr. Actual overheads: A = ₹3,00,000, B = ₹2,50,000. Actual hours: A = 4,500 hrs, B = 4,800 hrs. What is total under/over-absorption?

22. Which of the following is the most appropriate base for absorbing factory overhead in a labour-intensive industry?

23. Which of the following is the most appropriate basis for apportioning canteen expenses among production departments?

24. In a non‑integral costing system, which of the following is true?

25. Which of the following is TRUE about reconciliation between cost and financial accounts?