Cost and Managerial Accounting

371. Bin card is a record of ______________ only.

  1. Quality
  2. quanity
  3. Numbers
  4. Value
  5. None
Correct answer: (B)
quanity

372. Break-even analysis assumes that over the relevant range:

  1. Total costs are unchanged
  2. Unit variable costs are unchanged
  3. Variable costs are non-linear
  4. Unit fixed costs are unchanged
Correct answer: (B)
Unit variable costs are unchanged

373. If fixed costs increased by 31,500 with no other cost or revenue factors changing, the break-even sales in units would be:

  1. 34,500
  2. 80,500
  3. 69,000
  4. 94,500
Correct answer: (B)
80,500

374. Which of the following factors are not qualitative factors in a make or buy decision?

  1. Doubt as to the ability of the subcontractor to meet delivery dates
  2. Doubt as to ability of the subcontractor to maintain quality
  3. The case with which improvements can be made to the product
  4. The effect of redundancy on labour relations
Correct answer: (D)
The effect of redundancy on labour relations

375. The basic research cost should be treated as:

  1. Product cost
  2. Production cost
  3. Production overhead
  4. Period cost
Correct answer: (C)
Production overhead

376. The standard time required per unit of a product is 20 minutes. In a day of 8 working hours a worker had given an output of 30 units. If he gets a time rate of 20/hr., his total earnings under Halsey bonus scheme was:

  1. 200
  2. 192
  3. 180
  4. 16
Correct answer: (C)
180

377. If an item of overhead expenditure is charged specifically to a single department this would be an example of:

  1. Apportionment
  2. Allocation
  3. Re-apportionment
  4. Absorption
Correct answer: (B)
Allocation

378. under marginal costing:

  1. All costs are classified into two groups - variable and fixed
  2. Variable costs form part of the product cost and inventory valuation
  3. Fixed costs are treated as period costs
  4. All of the above
Correct answer: (D)
All of the above

379. Analysis of selling and distribution overheads is done by:

  1. Nature of expenses and functions
  2. Areas, products and salesmen
  3. Types of customers and channels of distribution
  4. All of the above
Correct answer: (D)
All of the above

380. Which of the following methods of depreciation results in fixed per unit cost of depreciation?

  1. Straight line
  2. Reducing balance
  3. Sinking fund
  4. Production unit
Correct answer: (D)
Production unit
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