Cost and Managerial Accounting

601. Bin card is maintained by

  1. Purchase department
  2. Production department
  3. Marketing department
  4. Stores keeper
  5. None of these
Correct answer: (D)
Stores keeper

602. The following data relate to two output levels of a department:

Machine hours 17,000 18,500
Overheads () 2, 46,500 2,51,750
  1. 5,250
  2. 59,500
  3. 1,87,000
  4. 2, 46,500
Correct answer: (C)
1,87,000

603. The process of distribution of overheads allotted to a particular department or cost center over the units produced is called:

  1. Allocation
  2. Apportionment
  3. Absorption
  4. Departmentalization
Correct answer: (C)
Absorption

604. The methods of treating cost of small tools in cost accounts include

  1. Charging to expense
  2. Charging to stores
  3. Capitalizing in a small tools account
  4. All of the above
Correct answer: (D)
All of the above

605. Which of the following does not influence the useful life of an asset?

  1. Expected physical wear and tear
  2. Cost of the asset
  3. Obsolescence
  4. Legal or other limits on the use of the asset
Correct answer: (B)
Cost of the asset

606. In account ting for labourcost:

  1. A. direct labour cost and indirect labour cost are charged to prime cost
  2. Direct labour cost and indirect labour cost are charged to overheads
  3. Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads
  4. All of the above
Correct answer: (C)
Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads

607. Cost of labour turnover may be treated as:

  1. Direct wages
  2. Prime cost
  3. Overhead
  4. None of the above
Correct answer: (C)
Overhead

608. Which of the following is false regarding the LIFO method of inventory valuation?

  1. The material issue will be priced at the price of the material that is purchased last.
  2. The pattern of cash flow does not necessarily coincide with the actual flow pattern of materials.
  3. It permits management to influence net income by timing the purchases.
  4. LIFO determines closing inventory at recent costs.
Correct answer: (D)
LIFO determines closing inventory at recent costs.

609. Inventory of 96,000 was purchased during the year. The cost of goods sold was 90,000 and the ending inventory was 18,000. What was the inventory turnover ratio for the year?

  1. 5.0 times
  2. 5.3 times
  3. 6.0 times
  4. 6.4 times
Correct answer: (D)
6.4 times

610. Which of the following is not an example of marketing overheads?

  1. Salary of the foreman
  2. Publicity expenses
  3. Salaries of sales staff
  4. Secondary packing charges
Correct answer: (A)
Salary of the foreman
Previous
Page 61 of 62
Next