Inter PN-8 Cost Accounting Quiz 5

1. Which of the following is NOT recorded on a Bin card?

2. Which of the following is NOT related to a standard list of materials and components?

3. For Return of Excess Materials from Production Department to stores , the document used is:

4. Classification of Materials on the basis of their Importance in Value is called:

5. Form used for making a formal request to the Purchasing Department to purchase materials is a-

6. Under the FSN system of Inventory Control ,Inventory is Classified on the basis of :

7. When prices fluctuate widely , the method that will smooth out the effect of fluctuations is

8. When Material prices Fluctuate widely, the method of pricing that gives absurd results is -

9. In which of the following methods, issues of materials are priced at pre-determined rate?

10. Continuous Stock Taking is a part of:

11. At the economic ordering quantity level , the following is true on an annual basis:

12. Which of following is NOT considered as Normal loss of material?

13. Which of the following is NOT considered to be Normal loss of Materials ?

14. In most of the manufacturing industries ,the most important element of cost is

15. During a period 17, 500 labour hours were worked at a standard cost of Rs. 6.50 per hour. The labour efficiency variance was Rs. 7,800 favourable.

How many standard hours were produced?

16. AT Co makes a single product and is preparing its material usage budget for next year. Each unit of product requires 2kg of material, and 5,000 units of product are to be produced next year.

Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at the end of next year by 20%

The material usage budget for next year is:

17. Blanket overhead rate is:

18. Most suitable basis for apportioning insurance of machine would be:

19. Service departments costs should be allocated to:

20. Which of the following is not a method of cost absorption?

21. Allotment of whole item of cost to a cost centre or cost unit is known as:

22. Overhead refers to:

23. A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs. 10 per hour. Under the Rowan Plan, he gets an hourly wage of Rs. 12 per hour. For the same saving in time, how much he will get under the Halsey Plan?

24. Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll:

• At the beginning of the month: 500
• At the end of the month: 600

During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme.

25. Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll:

• At the beginning of the month: 500
• At the end of the month: 600

During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme.