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Created on March 15, 2026 By

CA Sonal Saboo

CMA Inter

Inter Cost Accounting PN-8 Quiz 4

This quiz is based on the CMA Cost Accounting paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CA concepts.

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Category: Cost Accounting PN-8

1. Calculate workers recruited and joined from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and

Separation method. No. of workers replaced during the quarter is 80.

a. 112

b. 80

c. 48

d. 64

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Category: Cost Accounting PN-8

2. Calculate workers left and discharged from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and

Separation method. No. of workers replaced during the quarter is 80.

a. 112

b. 80

c. 48

d. 64

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Category: Cost Accounting PN-8

3. Costs associated with the labour turnover can be categorised into:

a. Preventive Costs only

b. Replacement costs only

c. Both of the above

d. Machine costs

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Category: Cost Accounting PN-8

4. Which of the following is not an avoidable cause of labour turnover:

a. Dissatisfaction with Job

b. Lack of training facilities

c. Low wages and allowances

d. Disability, making a worker unfit for work

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Category: Cost Accounting PN-8

5. Labour turnover means:

a. Turnover generated by labour

b. Rate of change in composition of labour force during a specified period

c. Either of the above

d. Both of the above

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Category: Cost Accounting PN-8

6. If overtime is resorted to at the desire of the customer, then the overtime premium:

a. should be charged to costing profit and loss account;

b. should not be charged at all

c. should be charged to the job directly

d. should be charged to the highest profit making department

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Category: Cost Accounting PN-8

7. Which of the following is an abnormal cause of Idle time:

a. Time taken by workers to travel the distance between the main gate of factory and place of their work

b. Time lost between the finish of one job and starting of next job

c. Time spent to meet their personal needs like taking lunch, tea etc

d. Machine break downs

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Category: Cost Accounting PN-8

8. From the following information, calculate the extra cost of material by following EOQ: Annual consumption: = 45000 units

Ordering cost per order: = Rs. 10

Carrying cost per unit per annum: = Rs. 10 Purchase price per unit = Rs. 50

Re-order quantity at present = 45000 units

There is discount of 10% per unit in case of purchase of 45000 units in bulk.

a. No saving

b. Rs. 2,00,000

c. Rs. 2,22,010

d. Rs. 2,990

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Category: Cost Accounting PN-8

9. Calculate re-order level from the following: Safety stock: 1000 units

Consumption per week: 500 units

It takes 12 weeks to reach material from the date of ordering.

a. 1000 units

b. 6000 units

c. 3000 units

d. 7000 units

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Category: Cost Accounting PN-8

10. Cost of abnormal wastage is:

a. Charged to the product cost

b. Charged to the profit & loss account

c. charged partly to the product and partly profit & loss account

d. not charged at all.

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Category: Cost Accounting PN-8

11. Calculate the value of closing stock from the following according to Weighted Average method:

1st January, 2024: Opening balance: 50 units @ Rs. 4 Receipts:

5th January, 2024: 100 units @ Rs. 5

12th January, 2024: 200 units @ Rs. 4.50 Issues:

2nd January, 2024: 30 units

18th January, 2024: 150 units

a. Rs. 765

b. Rs. 805

c. Rs. 786

d. Rs. 700

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Category: Cost Accounting PN-8

12. Calculate the value of closing stock from the following according to LIFO method:

1st January, 2024: Opening balance: 50 units @ Rs. 4 Receipts:

5th January, 2024: 100 units @ Rs. 5

12th January, 2024: 200 units @ Rs. 4.50

Issues:

2nd January, 2024: 30 units

18th January, 2024: 150 units

a. Rs. 765

b. Rs. 805

c. Rs. 786

d. Rs. 700

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Category: Cost Accounting PN-8

13. Calculate the value of closing stock from the following according to FIFO method:

1st January, 2024: Opening balance: 50 units @ Rs. 4 Receipts:

5th January, 2024: 100 units @ Rs. 5

12th January, 2024: 200 units @ Rs. 4.50

Issues:

2nd January, 2024: 30 units

18th January, 2024: 150 units

a. Rs. 765

b. Rs. 805

c. Rs. 786

d. Rs. 700

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Category: Cost Accounting PN-8

14. Calculate EOQ (approx.) from the following details: Annual Consumption: 24000 units

Ordering cost: Rs. 10 per order

Purchase price: Rs. 100 per unit

Carrying cost: 5%

a. 310

b. 400

c. 290

d. 300

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Category: Cost Accounting PN-8

15. Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days

a. 5600 units

b. 800 units

c. 1400 units

d. 200 units

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Category: Cost Accounting PN-8

16. In case of rising prices (inflation), LIFO will:

a. provide lowest value of closing stock and profit

b. provide highest value of closing stock and profit

c. provide highest value of closing stock but lowest value of profit

d. provide highest value of profit but lowest value of closing stock

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Category: Cost Accounting PN-8

17. In case of rising prices (inflation), FIFO method will:

a. provide lowest value of closing stock and profit

b. provide highest value of closing stock and profit

c. provide highest value of closing stock but lowest value of profit

d. provide highest value of profit but lowest value of closing stock

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Category: Cost Accounting PN-8

18. Which one out of the following is not an inventory valuation method?

a. FIFO

b. LIFO

c. Weighted Average

d. EOQ

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Category: Cost Accounting PN-8

19. ABC analysis is an inventory control technique in which:

a. Inventory levels are maintained

b. Inventory is classified into A, B and C category with A being the highest quantity, lowest value.

c. Inventory is classified into A, B and C Category with A being the lowest quantity, highest value

d. Either b or c.

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Category: Cost Accounting PN-8

20. Economic order quantity is that quantity at which cost of holding and carrying inventory is

a. Maximum and equal

b. Minimum and equal

c. It can be maximum or minimum depending upon case to case.

d. Minimum and unequal

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Category: Cost Accounting PN-8

21. Re-order level is calculated as:

a. Maximum consumption x Maximum re-order period

b. Minimum consumption x Minimum re-order period

c. 1/2 of (Minimum + Maximum consumption)

d. Maximum level - Minimum level

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Category: Cost Accounting PN-8

22. Stores Ledger is a:

a. Quantitative as well as value wise records of material received, issued and balance;

b. Quantitative record of material received, issued and balance

c. Value wise records of material received, issued and balance

d. a record of labour attendance

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Category: Cost Accounting PN-8

23. Bin Card is a:

a. Quantitative as well as value wise records of material received, issued and balance;

b. Quantitative record of material received, issued and balance

c. Value wise records of material received, issued and balance

d. a record of labour attendance

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Category: Cost Accounting PN-8

24. Out of the following, what is not the work of purchase department:

a. Receiving purchase requisition

b. Exploring the sources of material supply

c. Preparation and execution of purchase orders

d. Accounting for material received

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Category: Cost Accounting PN-8

25. Which of these is not a Material control technique:

a. ABC Analysis

b. Fixation of raw material levels

c. Maintaining stores ledger

d. Control over slow moving and non moving items

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Inter PN-8 Cost Accounting Quiz 4

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