ACCOUNTING-WORLD: Cost and Management Accounting Multiple Choice Questions#8

Cost and Management Accounting Multiple Choice Questions#8

NOTE: Attempt all Questions to see the Result at the bottom of this page.

1)

Calculate workers left and discharged from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80.
- A) 112
- B) 80
- C) 48
- D) 64
Right Answer is the option "C"

2)

Calculate workers recruited and joined from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80.
- A) 112
- B) 80
- C) 48
- D) 64
Right Answer is the option "A"

3)

Overhead refers to:
- A) Direct or Prime Cost
- B) All Indirect costs
- C) only Factory indirect costs
- D) Only indirect expenses
Right Answer is the option "B"

4)

Allotment of whole item of cost to a cost centre or cost unit is known as:
- A) Cost Apportionment
- B) Cost Allocation
- C) Cost Absorption
- D) Machine hour rate
Right Answer is the option "B"

5)

Which of the following is not a method of cost absorption?
- A) Percentage of direct material cost
- B) Machine hour rate
- C) Labour hour rate
- D) Repeated distribution method
Right Answer is the option "D"

6)

Service departments costs should be allocated to:
- A) Only Service departments
- B) Only Production departments
- C) Both Production and service departments
- D) None of the production and service departments
Right Answer is the option "C"

7)

Most suitable basis for apportioning insurance of machine would be:
- A) Floor Area
- B) Value of Machines
- C) No. of Workers
- D) No. of Machines
Right Answer is the option "B"

8)

Blanket overhead rate is:
- A) One single overhead absorption rate for the whole factory
- B) Rate which is blank or nil rate
- C) rate in which multiple overhead rates are calculated for each production department, service department etc.
- D) Always a machine hour rate
Right Answer is the option "A"

9)

During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The labour efficiency variance was Rs 7,800 favourable.

How many standard hours were produced?
- A) 1,200
- B) 16,300
- C) 17,500
- D) 18,700
Right Answer is the option "D"

10)

Which of the following is not a reason for an idle time variance?
- A) Wage rate increase
- B) Machine breakdown
- C) Illness or injury to worker
- D) Non- availability of material
Right Answer is the option "A"