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| | MGT 402 TODAY PAPER | |
| | Author | Message |
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Admin Admin
Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: MGT 402 TODAY PAPER Fri May 28, 2010 9:25 pm | |
| Question No: 1 ( Marks: 1 ) - Please choose one Which of the following is added in purchases in order to get the value of Net purchases? ► Purchases returns ► Carriage inward ► Trade discount ► Rebates Question No: 2 ( Marks: 1 ) - Please choose one If, Gross profit = Rs. 40,000 GP Margin = 25% of sales What will be the value of cost of goods sold? ► Rs. 160,000 ► Rs. 120,000 ► Rs. 40,000 ► Can not be determined Question No: 3 ( Marks: 1 ) - Please choose one Cost of finished goods inventory is calculated by: ► Deducting total cost from finished goods inventory ► Multiplying units of finished goods inventory with the cost per unit ► Dividing units of finished goods inventory with the cost per unit ► Multiplying total cost with finished goods inventory Question No: 4 ( Marks: 1 ) - Please choose one Financial statements are prepared: ► Only for publicly owned business organizations ► For corporations, but not for sole proprietorships or partnerships ► Primarily for the benefit of persons outside of the business organization ► Depending upon only the need of the decision maker Question No: 5 ( Marks: 1 ) - Please choose one Over which of the following is the manager of the Profit center likely to have control?
I. Selling process II. Controllable costs III. Apportioned head office costs IV. Capital investment in the center ► I, II and III ► I, II and IV ► I and II ► I, II, III and IV Question No: 6 ( Marks: 1 ) - Please choose one While transporting petrol, a little quantity will be evaporated; such kind of loss is termed as: ► Normal Loss. ► Abnormal Loss. ► Incremental Loss. ► Incremental abnormal loss. Question No: 7 ( Marks: 1 ) - Please choose one While deducting Income Tax from the gross pay of the employee, the employer acts as a (an) _________________for Income Tax Department. ► Agent of his own company ► Paid tax collection agent ► Unpaid tax collection agent ► None of the given options Question No: 8 ( Marks: 1 ) - Please choose one Which of the following is a cost that changes in proportion to changes in volume?
► Fixed cost ► Sunk cost ► Opportunity cost ► None of the given options Question No: 9 ( Marks: 1 ) - Please choose one The salary of factory clerk is treated as: ► Direct labor cost ► Indirect labor cost ► Conversion cost ► Prime cost Question No: 10 ( Marks: 1 ) - Please choose one Period costs are: ► Expensed when the product is sold ► Included in the cost of goods sold ► Related to specific period ► Not expensed Question No: 11 ( Marks: 1 ) - Please choose one Weighted average rate per unit is calculated by which of the following formula? ► Cost of goods issued/number of units issued ► Total cost/total units ► Cost of goods manufactured/closing units ► Cost of goods sold/total units Question No: 12 ( Marks: 1 ) - Please choose one A store sells five cases of soda each day. Ordering costs are Rs. 8 per order, and soda costs Rs. 3 per case. Orders arrive four days from the time they are placed. Daily holding costs are equal to 5% of the cost of the soda. What is the EOQ for soda? ► 4 cases ► 8 cases ► 10 cases ► 23 cases Question No: 13 ( Marks: 1 ) - Please choose one Direct Labor is an element of: ► Prime cost ► Conversion cost ► Total production cost ► All of the given options Question No: 14 ( Marks: 1 ) - Please choose one Basic pay + bonus pay + overtime payment is called: ► Net pay ► Gross pay ► Take home pay ► All of the given options Question No: 15 ( Marks: 1 ) - Please choose one The flux method of labor turnover denotes: ► Workers employed under the expansion schemes of the company ► The total change in the composition of labor force ► Workers appointed against the vacancy caused due to discharge or quitting of the organization ► Workers appointed in replacement of existing employees Question No: 16 ( Marks: 1 ) - Please choose one All of the following are cases of labor turnover EXCEPT: ► Workers appointed against the vacancy caused due to discharge or quitting of the organization ► Workers employed under the expansion schemes of the company ► The total change in the composition of labor force ► Workers retrenched Question No: 17 ( Marks: 1 ) - Please choose one Nelson Company has following FOH detail. Budgeted (Rs.) Actual (Rs.) Production Fixed overheads 36,000 39,000 Production Variable overheads 9,000 12,000 Direct labor hours 18,000 20,000
What would be the amount of under/over applied FOH
► Under applied by Rs.1,000 ► Over applied by Rs.1,000 ► Under applied by Rs.11,000 ► Over applied by Rs.38,000 Question No: 18 ( Marks: 1 ) - Please choose one In a job-order cost system, indirect labor costs would be recorded as a debit to: ► Finished Goods ► Manufacturing Overhead ► Raw Materials ► Work in Process Question No: 19 ( Marks: 1 ) - Please choose one A direct cost is identified by which of the following feature?
► Its behavior ► Its traceability ► Its controllability ► Its relevance Question No: 20 ( Marks: 1 ) - Please choose one The following information is available for ABC Co. Marketing expenses Rs. 300,000 Ending inventory of finished goods Rs. 90,000 The cost of goods sold 500 % of Marketing expense The cost of goods available for sale ?
► Rs. 300,000 ► Rs. 1,590,000 ► Rs. 90,000 ► Rs. 390,000 Question No: 21 ( Marks: 1 ) - Please choose one The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize:
► Conversion cost ► FOH cost ► Inventory cost ► Prime cost Question No: 22 ( Marks: 1 ) - Please choose one If management decides to buy in large quantities by placing few orders, it means
► Higher carrying cost and lower ordering cost ► Lower carrying cost and lower ordering cost ► Higher carrying cost and higher ordering cost ► Lower carrying cost and higher ordering cost Question No: 23 ( Marks: 1 ) - Please choose one Under Financial Accounting, what will be the impact of abnormal loss on the overall per unit cost?
► Per unit cost remain unchanged ► Abnormal loss has no relation to unit cost ► Per unit cost will increase ► Per unit cost will decrease Question No: 24 ( Marks: 1 ) - Please choose one Consider the given information. Estimated FOH Rs. 100,000 Estimated Direct labour hours 50,000 Hours Over applied FOH Rs. 50,000 Under applied FOH Rs. 15,000 Overhead absorption rate ?
► Rs. 2.00 ► Rs. 1.00 ► Rs. 0.30 ► Rs. 5.00 Question No: 25 ( Marks: 1 ) - Please choose one Blanket rate is also known as:
► Plant wide rate ► Departmental rate ► Over head absorption rate ► Factory overhead rate Question No: 26 ( Marks: 1 ) - Please choose one Budgeted factory overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 25,000 and variable rate Rs. 2.00 per hour. Required: Identify the amount of Budgeted Fixed Factory overhead.
► Rs. 65,000 ► Rs.15, 000 ► Rs. 20,000 ► Rs. 12,500 Question No: 27 ( Marks: 1 ) - Please choose one Job Code XYZ required total cost direct labour was Rs. 3,500 and direct labour was paid hourly @ Rs. 18. Production overhead was estimated at rate of Rs. 15 per direct labour hour. Required: Identify factory overhead cost with the help of above data. ► Rs. 2917 Approximately ► Rs. 194 Approximately ► Rs. 233 Approximately ► Rs. 270Approximately Question No: 28 ( Marks: 1 ) - Please choose one How costs can be accumulated in process-costing systems?
► Costs can be accumulated by product nature ► Costs can be accumulated by job nature ► Costs can be accumulated by department ► All of the given options Question No: 29 ( Marks: 1 ) - Please choose one Which of the given cost is NOT appeared in Cost of Production Report to calculate total cost?
► Material cost ► Labour cost ► Factory overhead cost ► None of the given options Question No: 30 ( Marks: 1 ) - Please choose one Department I of ABC manufacturing Company transferred 18,000 units to next department and unit cost of material, Labour and FOH is Rs. 2.00, Rs. 5.00 and Rs. 2.50 respectively. Identify the cost transferred to next department with the help of given data. ► Rs. 36,000 ► Rs. 45,000 ► Rs. 90,000 ► Rs. 171,000 Question No: 31 ( Marks: 1 ) - Please choose one D Corporation uses process costing to calculate the cost of manufacturing Crunchies. During the month 12,500 units were completed and transferred out. 1,500 units remained in work in process at 25 percent completed.
Required: Identify how many equivalent units were produced?
► 12,500 units ► 12,875 units ► 14,250 units ► 12,125 units Question No: 32 ( Marks: 1 ) - Please choose one If a company uses a predetermined rate for the application of factory overhead, the idle capacity variance is the: ► Difference of absorbed factory overhead and budgeted factory overhead for capacity attained ► Over or under applied variable cost element of overheads ► Difference in budgeted costs and actual costs of fixed overheads items ► Difference in budgeted cost and actual costs of variable overheads items Question No: 33 ( Marks: 1 ) - Please choose one Identify the FOH rate on the basis of machine hour?
Budgeted production overheads Rs.280,000 actual machine hours 70,000 hours Actual production overheads Rs.295,000
► Rs. 4.00 ► Rs. 4.08 ► Rs. 4.210 ► Rs. 4.35 Question No: 34 ( Marks: 1 ) - Please choose one Overhead absorption rate (OAR) can be calculated as:
► Direct labor cost /Direct Labor hours ► Estimated FOH/ Direct Labor hours ► Prime cost/ Estimated FOH ► Prime cost/ Direct labor cost Question No: 35 ( Marks: 3 ) Barley Ltd produces a certain food item in a manufacturing process. On 1st November there was no opening stock in process. During November, 700 units of material were put in to process, with a cost of Rs, 20,000. Direct labor cost in November was Rs.15; 000.production overhead is absorbed at the rate of 300% of direct labor costs. Closing stock on 30th November consisted of 200 units which were 100% completed as to materials and 80% completed as to labor and over head.
Required: Calculate the quantity of units completed and transfer-out
Question No: 36 ( Marks: 5 ) The higher rate of labor turnover results in increased cost of production. Discuss the Effect of Labor Turnover.
Question No: 37 ( Marks: 5 ) Units Units transferred to next department 40,000 Units still in process (all material, 2/3 labour & FO H) 8,000 Abnormal loss (1/2 complete as to material, Labour and FOH) 1,000
Following costs were added during the process.
Materials Rs.40,500 Labour 101,700 Factory overhead 50,500
Required: You are required to calculate equivalent units of material, labour and factory overhead and unit cost of material, labour and factory overhead. | |
| | | Admin Admin
Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: Re: MGT 402 TODAY PAPER Sat May 29, 2010 12:31 pm | |
| Question No: 1 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following is added in purchases in order to get the value of Net purchases?
► Purchases returns
► Carriage inward
► Trade discount
► Rebates
Question No: 2 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. A typical factory overhead cost is:
► Distribution
► Internal audit
► Compensation of plant manager
► Design
Question No: 3 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Costs that change in response to alternative courses of action are called:
► Relevant costs
► Differential costs
► Target costs
► Sunk costs
Question No: 4 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following best describes the manufacturing costs?
► Direct materials, direct labor and factory overhead
► Direct materials and direct labor only
► Direct materials, direct labor, factory overhead, and administrative overhead
► Direct labor and factory overhead
Question No: 5 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. If, COGS = Rs. 50,000
GP Margin = 25% of sales
What will be the value of Sales?
► Rs. 200,000
► Rs. 66,667
► Rs. 62,500
► Rs. 400,000
Question No: 6 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following is correct?
► Units sold= Opening finished goods units + Units produced – Closing finished goods units
► Units Sold = Units produced + Closing finished goods units - Opening finished goods units
► Units sold = Sales + Average units of finished goods inventory
► Units sold = Sales - Average units of finished goods inventory
Question No: 7 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin?
► FIFO
► LIFO
► Weighted Average
► Cannot be determined
Question No: 8 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following would be the effect, if inventory is not properly measured?
► Expenses and revenues cannot be properly matched
► Unfair position in Financial Statements
► Inventory items show under or over stocking
► All of the given options
Question No: 9 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. If, Basic Salary Rs.10,000
Per Piece commission Rs. 5
Unit sold 700 pieces
What will be the total Salary?
► Rs. 3,500
► Rs. 13,500
► Rs. 10,000
► Rs. 6,500
Question No: 10 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. The term cost allocation is described as:
► The costs that can be identified with specific cost centers.
► The costs that can not be identified with specific cost centers.
► The total cost of factory overhead needs to be distributed among specific cost centers.
► None of the given options
Question No: 11 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. The term Cost apportionment is referred to:
► The costs that can not be identified with specific cost centers.
► The total cost of factory overhead needs to be distributed among specific cost centers but must be divided among the concerned department/cost centers.
► The total cost of factory overhead needs to be distributed among specific cost centers.
► None of the given options
Question No: 12 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Nelson Company has following FOH detail.
Budgeted (Rs.) Actual (Rs.)
Production Fixed overheads 36,000 39,000
Production Variable overheads 9,000 12,000
Direct labor hours 18,000 20,000
What would be the amount of under/over applied FOH
► Under applied by Rs.1,000
► Over applied by Rs.1,000
► Under applied by Rs.11,000
► Over applied by Rs.38,000
Question No: 13 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. PEL & co found that a production volume of 400 units corresponds to production cost of Rs, 10,000 and that a production volume of 800 units corresponds to production costs of Rs.12,000. The variable cost per unit would be?
► Rs. 5.00 per unit
► Rs. 1.50 per unit
► Rs. 2.50 per unit
► Rs. 0.50 per unit
Question No: 14 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following loss is expected in manufacturing process and represents a necessary cost of processing the marketable units?
► Operating loss
► Abnormal loss
► Normal loss
► Extraordinary loss
Question No: 15 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Under perpetual Inventory system at the end of the year:
► No closing entry passed
► Closing entry passed
► Closing value find through closing entry only
► None of the above.
Question No: 16 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. A company applied overheads on machine hours which were budgeted at 11,250 with overhead of Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692. Overhead were?
► Over applied by Rs.4, 058
► Under applied by Rs.2, 152
► Under applied by Rs.4, 058
► Over applied by Rs.2, 152
Question No: 17 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. The components of total factory cost are:
► Direct Material + Direct Labor
► Direct Labor + FOH
► Prime Cost only
► Prime Cost + FOH
Question No: 18 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
► First to be allocated to the ending inventory
► Last to be allocated to the cost of goods sold
► Last to be allocated to the ending inventory
► First to be allocated to the cost of good sold
Question No: 19 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following is NOT an assumption of the basic economic-order quantity model?
► Annual demand is known
► Ordering cost is known
► Carrying cost is known
► Quantity discounts are available
Question No: 20 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the following is NOT reason of abnormal loss?
► Defective material used
► Machine breakdown
► Poor workmanships
► Natural disaster
Question No: 21 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Complete the following table when activity level increases above the normal level: Per unit Total Fixed cost Increase Constant Variable cost ? ? Total cost Increase Decrease
► Decrease, Decrease
► Increase, Increase
► Constant, Increase
► Increase, Decrease
Question No: 22 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. You are required to calculate number of units sold of ABC Fans Company for the first quarter of the year with the help of given information. Inventory opening Finished goods (100 fans) Rs. 43000 Direct material Rs. 268000 Inventory closing Finished goods (200 fans) Not known Direct material Rs. 167000 No of units manufactured 567 units
► 300 units
► 767 units
► 467 units
► 667 units
Question No: 23 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Given data that:
Work in Process Opening Inventory Rs. 20,000
Work in Process Closing Inventory 10,000
Finished goods Opening Inventory 30,000
Finished goods Closing Inventory 50,000
Cost of goods sold 190,000
What will be the value of cost of goods manufactured?
► Rs. 200,000
► Rs. 210,000
► Rs. 220,000
► Rs. 240,000
Question No: 24 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. In cost accounting, unavoidable loss is charged to which of the following?
► Factory over head control account
► Work in process control account
► Marketing overhead control account
► Administration overhead control account
Question No: 25 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Payroll includes:
► Salaries & Wages of direct labor
► Salaries & Wages of Indirect labor
► Salaries & Wages of Administrative staff
► Salaries & Wages of direct labor, Indirect labor, and Administrative & Selling Staff
Question No: 26 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Which of the given statement is CORRECT for Indirect Labor?
► It is charged to factory over head account
► It is charged to work in process
► It is entire production
► It is charged to administrative expenses
Question No: 27 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. A production worker paid salary of Rs. 700 per month plus an extra Rs. 5 for each unit produced during the month. This labor cost is best described as:
► A fixed cost
► A variable cost
► A semi variable cost
► A step fixed cost
Question No: 28 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Calculate Estimated FOH with the help of given data: Estimated Direct labour hours 50,000 Hours Over applied FOH Rs. 5,000 Under applied FOH Rs. 15,000 Overhead absorption rate Rs. 5.00/hour
► Rs. 25,000
► Rs. 50,000
► Rs. 75,000
► Rs. 250,000
Question No: 29 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. In which of the situation spending variance will give unfavorable result?
► Actual factory overhead is less than absorbed factory overhead
► Actual factory overhead is greater than absorbed factory overhead
► Budgeted factory overhead for actual volume is less than actual factory overhead
► Absorbed factory overhead less than budgeted factory overhead for actual volume
Question No: 30 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. All the given statements regarding job cost sheets are incorrect EXCEPT:
► Job cost sheet shows only direct materials cost on that specific job
► Job cost sheet must show the selling costs associated with a specific job
► Job cost sheet must show the administrative costs associated with a specific job
► Job cost sheet shows direct materials cost, direc labour cost and factory overhead costs associated with a specific job
Question No: 31 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. In process costing, each producing department is a:
► Cost unit
► Cost centre
► Investment centre
► Sales centre
Question No: 32 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. With reference to cost of production report, cost accounted for as follows is also known as:
► Cost reconciliation
► Bank reconciliation
► Cash reconciliation
► Capital reconciliation
Question No: 33 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Identify units transferred out with the help of given data: Units Units still in process (100%material, 75% conversion ) 4,000 Lost units 2,000 Units started in process 50,000
► 6,000 units
► 44,000 units
► 52,000 units
► 56,000 units
Question No: 34 ( Marks: 1 ) - Please choose one
Your browser may not support display of this image. Details of the process for the last period are as follows: Put into process 5,000 kg Materials Rs. 2,500 Labor Rs.700 Production overheads 200% of labor
Normal losses are 10% of input in the process. The out put for the period was 4,200 Kg from the process. There was no opening and closing Work- in- process. What were the units of abnormal loss?
► 500 units
► 300 units
► 200 units
► 100 units
Question No: 35 ( Marks: 3 )
Your browser may not support display of this image. 50, 000 units were received from preceding department, 9,000 units were still in process at the end of month (complete all material, 75% Labour & FOH). 500 lost units were 60% complete as to material and conversion costs. This loss is considered as abnormal and is to be charged to factory overhead.
Required: You are required to calculate equivalent units of material, labour and factory overhead.
Question No: 36 ( Marks: 5 )
Your browser may not support display of this image. Irfan Industries Limited has two production departments A and B and two mutually interdependent service departments X and Y. Cost of service departments is apportioned on the basis of following %ages: A B X Y Service department X 50% 30% - 20% Service department Y 40% 50% 10% -
Following figures of departmental costs are available after the primary distribution: Department A 15,750 Department B 7,500 Department X 11,750 Department Y 5,000
Calculate total factory overhead of production department by preparing a work sheet showing the secondary distribution using Repeated apportionment method.
Question No: 37 ( Marks: 5 )
Your browser may not support display of this image. Factory overhead absorption rate of a pharmaceutical is Rs 2.50. Budgeted Factory overhead at two activity levels is as follows for that period. Activity level Budgeted factory overhead Low 20,000 Hours Rs. 45,000 High 40,000 Hours Rs. 75,000
Actual Factory overhead for that period was Rs. 42,000 and actual volume was 25,000 hours.
Required:
1. Variable factory overhead absorption rate 2. Budgeted variable factory overhead at high activity level 40,000 hours. 3. Budgeted fixed factory overhead | |
| | | Admin Admin
Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: Re: MGT 402 TODAY PAPER Sun May 30, 2010 2:34 pm | |
| Question No: 1 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following statement measures the financial position of the entity on particular time? ► Income Statement ► Balance Sheet ► Cash Flow Statement ► Statement of Retained Earning Question No: 2 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Net sales were Rs. 360,000. The cost of goods sold was Rs. 180,000. Operating expenses were Rs. 120,000. The ending balance of the Accounts Receivable was Rs. 20,000. The merchandise turnover ratio was 12.75. What was the Net profit ratio? ► 16.67% ► 20.0% ► 40.0% ► 33.3% Question No: 3 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The net sales of the business totals Rs. 200,000 and the Cost of Goods Sold for the same period totals Rs.146,000. What is the gross margin ratio? ► 0.22 ► 0.25 ► 0.27 ► 0.33 Question No: 4 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] “Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of: ► Over stocking ► Under stocking ► Replenishment of stock ► Acquisition of stock Question No: 5 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is a period cost? ► Direct materials ► Indirect materials ► Factory utilities ► Administrative expenses Question No: 6 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is CORRECT to calculate cost of goods manufactured? ► Direct labor costs plus total manufacturing costs ► The beginning work in process inventory plus total manufacturing costs and subtract the ending work in process inventory ► Beginning raw materials inventory plus direct labor plus factory overhead ► Conversion costs and work in process inventory adjustments results in cost of goods manufactured Question No: 7 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If, Sales = Rs. 1200,000 Markup = 20% of cost What would be the value of Gross profit? ► Rs. 200,000 ► Rs. 100,000 ► Rs. 580,000 ► Rs. 740,000 Question No: 8 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following cost is used in the calculation of cost per unit? ► Total production cost ► Cost of goods available for sales ► Cost of goods manufactured ► Cost of goods Sold Question No: 9 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is correct? ► Units sold= Opening finished goods units + Units produced – Closing finished goods units ► Units Sold = Units produced + Closing finished goods units - Opening finished goods units ► Units sold = Sales + Average units of finished goods inventory ► Units sold = Sales - Average units of finished goods inventory Question No: 10 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units? ► 2,592 units ► 25,920 units ► 18,720 units ► 129,600 units Question No: 11 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Basic pay + bonus pay + overtime payment is called: ► Net pay ► Gross pay ► Take home pay ► All of the given options Question No: 12 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] A Blanket Rate is: ► A single rates which used throughout the organisation departments ► A double rates which used throughout the organisation departments ► A single rates which used in different departments of the organisation. ► None of the Given Question No: 13 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] When a manufacturing Company has highly automated manufacturing plant producing many different products, the most appropriate basis for applying FOH cost to work in process is: ► Direct labor hours ► Direct labor costs ► Machine hours ► Cost of material used Question No: 14 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Capacity Variance / Volume Variance arises due to ► Difference between Absorbed factory overhead and budgeted factory for capacity attained ► Difference between Absorbed factory overhead and absorption rate ► Difference between Budgeted factory overhead for capacity attained and FOH actually incurred ► None of the given options Question No: 15 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following industries would most likely use a Process cost Accounting system? ► Construction ► Beer ► Hospitality ► Consulting Question No: 16 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which cost accumulation procedure is best suited to a continuous mass production process of similar units? ► Job order costing ► Process costing ► Standard costing ► Actual costing Question No: 17 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] LG has incurred cost of Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost for material? ► Rs. 22 ► Rs. 16 ► Rs. 14 ► Rs. 8 Question No: 18 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Under perpetual Inventory system the Inventory is treated as: ► Assets ► Liability ► Income ► Expense Question No: 19 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] During the year 60,000 units put in to process.55, 000 units were completed. Closing WIP were 25,000 units, 40% completed. How much the equivalent units of output would be produced? ► 25,000 units ► 10,000 units ► 65,000 units ► 80,000 units Question No: 20 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways? ► First to be allocated to the ending inventory ► Last to be allocated to the cost of goods sold ► Last to be allocated to the ending inventory ► First to be allocated to the cost of good sold Question No: 21 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In cost Accounting, abnormal loss is charged to: ► Factory overhead control account ► Work in process account ► Income Statement ► Entire production Question No: 22 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The following information is available for ABC Co. Marketing expenses | Rs. 300,000 | Ending inventory of finished goods | Rs. 90,000 | The cost of goods sold | 500 % of Marketing expense | The cost of goods available for sale | ? | ► Rs. 300,000 ► Rs. 1,590,000 ► Rs. 90,000 ► Rs. 390,000 Question No: 23 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] TO whom purchase order form is issued to place an order? ► Work station incharge ► Store incharge ► Supplier ► Manager Question No: 24 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given payroll incentive does not relate to production? ► Commission ► Shift allowance ► Over time payment ► Bonus Question No: 25 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Consider the following data: Salary | Rs.5000 | Per Piece commission | 10 % per piece | Unit sold | 700 pieces | Price per piece | Rs. 10 | Amount of commission received | ? | ► Rs. 100 ► Rs. 500 ► Rs. 600 ► Rs. 700 Question No: 26 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Factory overhead should be allocated on the basis of: ► Conversion cost ► An activity basis which relates to cost incurrence ► Direct labor costs ► Prime cost Question No: 27 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In which of the situation spending variance will give favorable result? ► Actual factory overhead is less than absorbed factory overhead ► Actual factory overhead is greater than absorbed factory overhead ► Budgeted factory overhead for actual volume is greater than actual factory overhead ► Absorbed factory overhead less than budgeted factory overhead for actual volume Question No: 28 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] When cost of production report is prepared? ► It is prepared at the end of each costing period ► It is prepared during each costing period ► It is prepared at the start of each costing period ► It can be prepared at any time Question No: 29 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Production process may result into spoiled or lost units. This lost unit may result into which of the following category/categories? ► Normal loss ► Abnormal loss ► Unavoidable loss ► All of the given options Question No: 30 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In process accounting, avoidable losses are valued: ► At their scrap value ► Same as good units/production ► At the value of labour cost ► At the value of material cost Question No: 31 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Identify units transferred out with the help of given data: | Units | Units still in process (100%material, 75% conversion ) | 4,000 | Lost units | 2,000 | Units started in process | 50,000 | ► 6,000 units ► 44,000 units ► 52,000 units ► 56,000 units Question No: 32 ( Marks: 1 ) - Please choose one [You must be registered and logged in to see this image.] Lost units (Normal loss) | 500 units | Units received from preceding department | 13,500 units | Units completed in this department | 11,750 units | Required: Identify units still in process with the help of above data. ► 1,250 units ► 14,000 units ► 12,250 units ► 1,750 units Question No: 33 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The net profit or net loss for a particular time period is calculated in which of the given statement? ► Cost of goods manufactured statement ► Bank reconciliation statement ► Income statement ► Bank statement Question No: 34 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Overhead absorption rate (OAR) can be calculated as: ► Direct labor cost /Direct Labor hours ► Estimated FOH/ Direct Labor hours ► Prime cost/ Estimated FOH ► Prime cost/ Direct labor cost Question No: 35 ( Marks: 3 ) [You must be registered and logged in to see this image.] Units transferred out to next department 20,000 units. Units lost at beginning of production 500 units. Units in process 2,500 units which were complete as to materials, 1/2 complete as to labor and factory overhead. Required: Prepare the Quantity Schedule Question No: 36 ( Marks: 5 ) [You must be registered and logged in to see this image.] Patacake Ltd produces a certain food item in a manufacturing process. On 1st November there was no opening stock in process. During November, 500 units of material were put in to process, with a cost of Rs, 9,000. Units completed and transferred-out were 400 units. Direct labor cost in November was R.3840. Production overhead is absorbed at the rate of 200% of direct labor costs. Closing stock on 30th November consisted of 100 units which were 100% completed as to materials and 80% completed as to labor and over head. Required: The full production cost of completed units during November? Question No: 37 ( Marks: 5 ) [You must be registered and logged in to see this image.] Ali Company estimates its factory overhead for the next period at Rs. 64,000. It is estimated that 30,000 units will be produced at material cost of Rs. 65,000. Production will require 25,000 direct labor hours at an estimated cost of Rs. 130,000. The machine will run about 18,000 hours. Required: the predetermined factory overhead rate based on: i. Units of production ii. Direct labor hours iii. Machine hours iv. Direct labour cost v. Material cost | |
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Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: Re: MGT 402 TODAY PAPER Mon May 31, 2010 4:25 pm | |
| Question No: 1 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following cost is linked with the calculation of cost of inventories? ► Product cost ► Period cost ► Both product and period cost ► Historical cost Question No: 2 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] You made Rs. 10,000 loan to your cousin's company. At the end of one year, the company returned to you Rs. 10,850. The Rs. 850 is called which one of the following? ► Increases in loan ► Increases in dividends ► An 8.5% return on investment ► All of the given options Question No: 3 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Machine lubricant used on processing equipment in a manufacturing plant would be classified as a: ► Period cost (manufacturing overhead) ► Period cost (Selling, General & Admin) ► Product cost (manufacturing overhead) ► Product cost (Selling, General & Admin) Question No: 4 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] An average cost is also known as: ► Variable cost ► Unit cost ► Total cost ► Fixed cost Question No: 5 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Finished goods inventory costs represent the costs of goods that are: ► Currently being worked on ► Waiting to be worked on ► Waiting to be sold ► Already delivered to customers Question No: 6 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is deducted from purchases in order to get the value of Net purchases? ► Purchases returns ► Carriage inward ► Custom duty ► All of the given options Question No: 7 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is correct? ► Units sold= Opening finished goods units + Units produced – Closing finished goods units ► Units Sold = Units produced + Closing finished goods units - Opening finished goods units ► Units sold = Sales + Average units of finished goods inventory ► Units sold = Sales - Average units of finished goods inventory Question No: 8 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In cost Accounting, normal loss is/are charged to: ► Factory overhead control account ► Work in process account ► Income Statement ► All of the given options Question No: 9 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Material requisition is a document that supports the requirement of the material. This document is sent to store incharge and approved by: ► Store manager ► Production manager ► Supplier manager ► Purchase manager Question No: 10 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Over applied FOH will always result when a predetermined FOH rate is applied and: ► Production is greater than defined capacity ► Actual overhead costs are less than budgeted ► Budgeted capacity is less than normal capacity ► Actual overhead incurred is less than applied Overhead Question No: 11 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following would be considered as factory overhead using a job order cost system? ► Direct materials ► Direct labor ► Depreciation on factory buildings ► Salesperson's salary Question No: 12 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT: ► Number of units in the beginning work in process ► Number of units sold ► Number of units in the ending work in process and their estimated stage of completion ► Number of units completed Question No: 13 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In order to compute equivalent units of production, which of the following must be reasonably estimated? ► Units ► The percentage of completion ► Direct material cost ► Units started and completed Question No: 14 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] When 10,000 ending units of work-in-process are 30% completed as to conversion, it means: ► 30% of the units are completed ► 70% of the units are completed ► Each unit has been completed to 70% of its final stage ► Each of the units is 30% completed Question No: 15 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] LG has incurred cost of Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost for material? ► Rs. 22 ► Rs. 16 ► Rs. 14 ► Rs. 8 Question No: 16 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] A chemical process has normal wastage of 10% of input. In a period, 2,500 Kg of material were input and there was abnormal loss of 75 Kg. What quantity of good production was achieved? ► 2,175 kg ► 2,250 kg ► 2,425 kg ► 2,500 kg Question No: 17 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If the cost per equivalent unit is Rs. 1.60. The equivalent units of output are 50,000. The WIP closing stock is 10,000 units, 40% completed. What will be the value of closing stock? ► Rs. 9,600 ► Rs. 80,000 ► Rs. 16,000 ► Rs. 6,400 Question No: 18 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given cost does not become the part of cost unit? ► Advertising expenses ► Direct labor cost ► Factory overhead cost ► Cost of raw material Question No: 19 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given cost becomes the part of cost unit? ► Direct material cost ► Factory overhead ► Direct labor cost ► All of the given options Question No: 20 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The main difference between the profit center and investment center is: ► Decision making ► Revenue generation ► Cost incurrence ► Investment Question No: 21 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize: ► Conversion cost ► FOH cost ► Inventory cost ► Prime cost Question No: 22 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The annual demand for a stock item is 2,500 units. The cost of placing an order is Rs. 80 and the cost holding an item in stock is for one year is Rs. 15. Required: What is the EOQ? ► 163 units ► 1250 units ► 5,000 units ► 160 units Question No: 23 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] TO whom purchase order form is issued to place an order? ► Work station incharge ► Store incharge ► Supplier ► Manager Question No: 24 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] What type of information CANNOT get from bin card? ► It provides the information for Reorder level ► It provides the information for Economic order quantity ► It provides the information for Maximum daily consumption ► It provides the information for Cost of material consumed Question No: 25 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following groups of workers would be classified as indirect labor? ► Machinists in an organization manufacturing clothes ► Bricklayers in a house building company ► Maintenance workers in a shoe factory ► None of the given options Question No: 26 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Taylor's Differential Piece Rate Plan based on _____________piece rates is fixed. ► Two ► Three ► Four ► Five Question No: 27 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Meerick Differential Piece Rate Plan based on _____________piece rates is fixed. ► Two ► Three ► Four ► Five Question No: 28 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Depreciation of building expense is an example of factory overhead which is apportioned on the basis of: ► Capital value ► Departmental payroll ► Area in square feet or cubic feet ► Number of workers Question No: 29 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Maintenance and repair of plant and machinery can be apportioned on the basis of: ► Capital value ► Departmental payroll ► Area in square feet or cubic feet ► Number of workers Question No: 30 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Calculate predetermined factory overhead absorption rates with the help of given data. Items | Budgeted figure | Actual Figures | Factory overhead (Rs) | 1,200,000 | ---- | Machine hours | 200,000 | 28,000 | ► Rs. 43.00 ► Rs. 0.20 ► Rs. 6.00 ► Rs. 14 Question No: 31 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In which of the situation spending variance will give favorable result? ► Actual factory overhead is less than absorbed factory overhead ► Actual factory overhead is greater than absorbed factory overhead ► Budgeted factory overhead for actual volume is greater than actual factory overhead ► Absorbed factory overhead less than budgeted factory overhead for actual volume Question No: 32 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If absorbed factory overhead is Rs.155,000 and Budgeted factory overhead for actual volume is Rs. 110,000 then difference of both will be: ► Unfavorable Spending variance of Rs. 45,000 ► Favorable Spending variance of Rs. 45,000 ► Favorable Volume variance of Rs. 45,000 ► Favorable Budget variance of Rs. 45,000 Question No: 33 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given is CORRECT for accounting entry of closing balance of Work In Process (WIP)? ► WIP a/c Dr and Inventory a/c Cr ► Inventory a/c Dr and WIP a/c Cr ► WIP a/c Dr and payroll a/c Cr ► There is no accounting entry for closing balance of WIP Question No: 34 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Greenwood petroleum has the data for the year was as follow: Lost units (Normal Loss) | 200 | Introduced units during the year | 67,00 | Units in process | 15,00 | Identify how many units were completed and transferred out during this period? ► 1,700 units ► 5,000 units ► 1,500 units ► 6,900 units Question No: 35 ( Marks: 3 ) [You must be registered and logged in to see this image.] Schlamber Company Factory overhead rate is Rs.2 per hour. Budgeted overhead for 3,000 hours per month is Rs. 8,000 and 7,000 hours is Rs. 12,000. Actual factory overhead for the month was Rs.9, 000 and actual volume was 5,000 hours. Required:1. Applied overhead2. Over-or under applied overhead. Question No: 36 ( Marks: 5 ) [You must be registered and logged in to see this image.] Irfan Industries Limited has two production departments A and B and two mutually interdependent service departments X and Y. Cost of service departments is apportioned on the basis of following %ages: | A | B | X | Y | Service department X | 50% | 30% | - | 20% | Service department Y | 40% | 50% | 10% | - | Following figures of departmental costs are available after the primary distribution: Department A | 15,750 | Department B | 7,500 | Department X | 11,750 | Department Y | 5,000 | Calculate total factory overhead of production department by preparing a work sheet showing the secondary distribution using Repeated apportionment method. Question No: 37 ( Marks: 5 ) [You must be registered and logged in to see this image.] PA limited operates a job costing system. The company standard sale price is predetermined Rs. 505 based on cost plus 20% profit margin. The estimated cost for Job # 141 is as follows: Direct material | 5 meters@ Rs.20 per meter | Direct labor | 14 hours@ Rs. 8.00 per hour | Production overhead for the year are budgeted to be Rs.200,000 and are to be recovered on the basis of the total 40,000 direct labor hour for the year.Required: v Calculate Cost of Goods Sold for job # 141v Calculate amount of profit for job #141 | |
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Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: Re: MGT 402 TODAY PAPER Mon May 31, 2010 4:27 pm | |
| Question No: 1 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Cost of incoming freight on merchandise to be sold to customers by a retail chain would be considered by that merchandiser to be: ► Prime costs ► Inventoriable costs ► Period costs ► None of the given options Question No: 2 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Net sales = Sales less: ► Sales returns ► Sales discounts ► Sales returns & allowances ► Sales returns & allowances and sales discounts Question No: 3 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Cost accounting concepts include all of the following EXCEPT: ► Planning ► Controlling ► Sharing ► Costing Question No: 4 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is a cost that changes in proportion to changes in volume? ► Fixed cost ► Sunk cost ► Opportunity cost ► None of the given options Question No: 5 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Finished goods inventory costs represent the costs of goods that are: ► Currently being worked on ► Waiting to be worked on ► Waiting to be sold ► Already delivered to customers Question No: 6 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] According to IASB framework, Financial statements exhibit its users the: ► Financial position ► Financial performance ► Cash inflow and outflow analysis ► All of the given options Question No: 7 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If, COGS = Rs. 50,000GP Margin = 25% of sales What will be the value of Sales? ► Rs. 200,000 ► Rs. 66,667 ► Rs. 62,500 ► Rs. 400,000 Question No: 8 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is correct? ► Units sold= Opening finished goods units + Units produced – Closing finished goods units ► Units Sold = Units produced + Closing finished goods units - Opening finished goods units ► Units sold = Sales + Average units of finished goods inventory ► Units sold = Sales - Average units of finished goods inventory Question No: 9 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following would be the effect, if inventory is not properly measured? ► Expenses and revenues cannot be properly matched ► Unfair position in Financial Statements ► Inventory items show under or over stocking ► All of the given options Question No: 10 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] If EOQ = 360 units, order costs are Rs. 5 per order, and carrying costs are Rs. 0.20 per unit, what is the usage in units? ► 2,592 units ► 25,920 units ► 18,720 units ► 129,600 units Question No: 11 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Basic pay + bonus pay + overtime payment is called: ► Net pay ► Gross pay ► Take home pay ► All of the given options Question No: 12 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following is a reason for the overtime to be incurred? ► Make up for lost time ► Produce more of the product than anticipated ► Increase efficiency of the workers ► Both for make up of lost time and produced more product than anticipated Question No: 13 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Where there is mass production of homogeneous units or where few products are produced in batches, which of the following cost driver would be regarded as best base for the determination of Factory overhead absorption rate? ► Number of units produced ► Labor hours ► Prime cost ► Machine hours Question No: 14 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The Process of cost apportionment is carried out so that: ► Cost may be controlled ► Cost unit gather overheads as they pass through cost centers ► Whole items of cost can be charged to cost centers ► Common costs are shared among cost centers Question No: 15 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Nelson Company has following FOH detail. Budgeted (Rs.) Actual (Rs.)Production Fixed overheads 36,000 39,000Production Variable overheads 9,000 12,000Direct labor hours 18,000 20,000 What would be the amount of under/over applied FOH ► Under applied by Rs.1,000 ► Over applied by Rs.1,000 ► Under applied by Rs.11,000 ► Over applied by Rs.38,000 Question No: 16 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the following would be considered a major aim of a job order costing system? ► To determine the costs of producing each job ► To compute the cost per unit ► To include separate records for each job to track the costs ► All of the given options Question No: 17 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT: ► Number of units in the beginning work in process ► Number of units sold ► Number of units in the ending work in process and their estimated stage of completion ► Number of units completed Question No: 18 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] LG has incurred cost of Rs. 60,000 for material. Further it incurred Rs. 35,000 for labor and Rs. 70,000 for factory overhead. There was no beginning and ending work in process. 7,500 units were completed and transferred out. What would be the unit cost for material? ► Rs. 22 ► Rs. 16 ► Rs. 14 ► Rs. 8 Question No: 19 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] In a process costing system, the journal entry used to record the transfer of units from Department A, a processing department, to Department B, the next processing department, includes a debit to: ► Work in Process Department A and a credit to Work in Process Department B ► Work in Process Department B and a credit to Work in Process Department A ► Work in Process Department B and a credit to Materials ► Finished Goods and a credit to Work in Process Department B Question No: 20 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] FIFO is the abbreviation of: ► Final Interest-Free Option ► First in First out Method ► None of the given options ► Fixed income Financial Operations Question No: 21 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] A company applied overheads on machine hours which were budgeted at 11,250 with overhead of Rs.258, 750.Actual results were 10,980 hours with overheads of Rs.254, 692. Overhead were? ► Over applied by Rs.4, 058 ► Under applied by Rs.2, 152 ► Under applied by Rs.4, 058 ► Over applied by Rs.2, 152 Question No: 22 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given cost does not become the part of cost unit? ► Advertising expenses ► Direct labor cost ► Factory overhead cost ► Cost of raw material Question No: 23 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Imputed cost is also called ► Explicit cost ► Implicit cost ► Firm cost ► Period cost Question No: 24 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The journal entry of Material purchase on credit under perpetual inventory system is: ► Inventory account (Dr) Material account (Cr) ► Account payable (Dr.) Purchases account (Cr) ► Inventory account (Dr) Account payable account (Cr) ► Purchases account (Dr) Accounts payable account (Cr) Question No: 25 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] The annual demand for a stock item is 2,500 units. The cost of placing an order is Rs. 80 and the cost holding an item in stock is for one year is Rs. 15. Required: What is the EOQ? ► 163 units ► 1250 units ► 5,000 units ► 160 units Question No: 26 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Working hours of labor can be calculated with the help of all EXCEPT: ► Smart card ► Time sheet ► Store card ► Clock card Question No: 27 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Inventory of Rs. 96,000 was purchased during the year. The cost of goods sold was Rs. 90,000 and the ending inventory was Rs. 18,000. What was the inventory turnover ratio for the year? ► 5.0 times ► 5.3 times ► 6.0 times ► 6.4 times Question No: 28 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Gross pay รท ____________ =Effective wage rate ► Actual hours worked ► Time allowed ► Time saved ► None of the given options Question No: 29 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Which of the given statement is CORRECT for factory overhead cost? ► It is direct production cost. ► It is prime cost. ► It is conversion cost. ► It is an indirect production cost. Question No: 30 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Depreciation of building expense is an example of factory overhead which is apportioned on the basis of: ► Capital value ► Departmental payroll ► Area in square feet or cubic feet ► Number of workers Question No: 31 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Budgeted fixed factory overhead is Rs. 40,000 and budgeted variable factory overhead Rs. 30,000 and variable rate Rs. 8.00 per hour. Required: Identify the amount of Budgeted Factory overhead. ► Rs. 10,000 ► Rs. 5, 000 ► Rs. 70,000 ► Rs. 3,750 Question No: 32 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Cost of production report summarizes data of: ► Quantities produced by producing department only ► Cost incurred by producing department only ► Quality of purchased units only ► Quantities produced and Cost incurred by producing department Question No: 33 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] Production process may result into spoiled or lost units. This lost unit may result into which of the following category/categories? ► Normal loss ► Abnormal loss ► Unavoidable loss ► All of the given options Question No: 34 ( Marks: 1 ) - Please choose one[You must be registered and logged in to see this image.] It is assumed that Rs. 1,000 incurred to produce 100 units but after inspection it came to know that 10 units were lost. Then Rs. 1,000 will be spread over: ► 10 units ► 100 units ► 90 units ► 110 units Question No: 35 ( Marks: 3 ) [You must be registered and logged in to see this image.] What is the justification of spreading the cost of lost units over the remaining goods units? Question No: 36 ( Marks: 5 ) [You must be registered and logged in to see this image.] The higher rate of labor turnover results in increased cost of production. Discuss the Effect of Labor Turnover. Question No: 37 ( Marks: 5 ) [You must be registered and logged in to see this image.] PA limited operates a job costing system. The company standard sale price is predetermined Rs. 505 based on cost plus 20% profit margin. The estimated cost for Job # 141 is as follows: Direct material | 5 meters@ Rs.20 per meter | Direct labor | 14 hours@ Rs. 8.00 per hour | Production overhead for the year are budgeted to be Rs.200,000 and are to be recovered on the basis of the total 40,000 direct labor hour for the year.Required: v Calculate Cost of Goods Sold for job # 141v Calculate amount of profit for job #141 | |
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