Cost and Managerial Accounting

521. Contribution margin contributes to meet which one of the following options?

1. Variable cost
2. Fixed cost
3. Operating cost
4. Net profit

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522. Non-monetary incentives may include the following except:

1. Health and safety
2. Housing facilities
3. Education and training
4. Dearness allowance

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523. Which of the following is calculated by a formula that uses net sales as denominator?

1. Inventory turnover ratio
2. Gross profit rate
3. Return on Investment
4. None of the given options

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524. Which of the following is not a production department?

1. Power department
2. Machining department
3. Refining department
4. Finishing department

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525. An overhead absorption rate is used to:

1. Share out common costs over benefiting cost canters
2. Find the total overheads for a cost centre
3. Charge overheads to products
4. Control overheads

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526. Which of the following is/are not associated with ordering costs?

1. Interest
2. Insurance
3. Opportunity costs
4. All of the given options

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527. If Direct Material = 12,000; Direct Labor = 8000 and other Direct Cost = 2000 then what will be the Prime Cost?

1. 12000
2. 14000
3. 20000
4. 22000

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528. Which of the following is/are reported in production cost report?

1. The costs charged to the department
2. How the costs were assigned to the output?
3. The equivalent units of production by the department
4. All of the given options

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529. Which of the following statement is TRUE about FOH applied rates?

1. They are used to control overhead costs
2. They are based on actual data for each period
3. They are predetermined in advance for each period
4. None of the given

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530. Which of the following is NOT an assumption of the basic economic-order quantity model?

1. Annual demand is known
2. Ordering cost is known
3. Carrying cost is known
4. Quantity discounts are available

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