Cost and Managerial Accounting

611. According to Rowan premium plan, which of the following formula is used to calculate the bonus rate?

1. (Time saved/time allowed) x 100
2. (Time allowed/time saved) x 100
3. (Actual time taken/time allowed) x 100
4. (Time allowed/actual time taken) x 100

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612. Wage, Rent & Materials are examples of:

1. Implicit Cost
2. Explicit Cost
3. Direct Cost
4. Manufacturing Cost

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613. The main difference between the profit center and investment center is:

1. Decision making
2. Revenue generation
3. Cost incurrence
4. Investment

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614. All of the following are cases of labor turnover EXCEPT:

1. Workers appointed against the vacancy caused due to discharge or quitting of the organization
2. Workers employed under the expansion schemes of the company
3. The total change in the composition of labor force
4. Workers retrenched

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615. A disadvantage of an hourly wage plan is that it:

1. Provides no incentive for employees to achieve and maintain a high level of production.
2. Is hardly ever used and is difficult to apply.
3. Establishes a definite rate per hour for each employee.
4. Encourages employees to sacrifice quality in order to maximize earnings.

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616. The following data relate to two activity levels of an out-patients'department in a hospital:

No. of consultations per patient	4,500	5,750
Overheads	2,69,750	2,89,125

Fixed overheads are 2,00,000 per period. The variable cost per consultation is

1. 15.50
2. 44.44
3. 59.94
4. none of the above

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617. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of 1,100, number of units sold 22,000. What shall be the BEP 9in units) if raw material price is reduced by 2%?

1. 18,387
2. 18,560
3. 18,750
4. 19,000

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618. Which of the following is not included in functional classification of overheads?

1. Repairs and maintenance
2. Lubricating oil
3. Consumable stores
4. Chargeable expenses

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