Cost and Managerial Accounting 41. Which of these is not a Material control technique:
ABC Analysis Fixation of raw material levels Maintaining stores ledger Control over slow moving and non moving items View answer Correct answer: (C)
42. Which one out of the following is not an inventory valuation method?
FIFO LIFO Weighted Average EOQ View answer Correct answer: (D)
43. Cost of abnormal wastage is:
Charged to the product cost Charged to the profit & loss account charged partly to the product and partly profit & loss account not charged at all. View answer Correct answer: (B)
44. Costs associated with the labour turnover can be categorised into:
Preventive Costs only Replacement costs only Both of the above Machine costs View answer Correct answer: (C)
45. A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs. 10 per hour. Under the Rowan Plan, he gets an hourly wage of Rs. 12 per hour. For the same saving in time, how much he will get under the Halsey Plan?
Rs. 720 Rs. 540 Rs. 600 Rs. 900 View answer Correct answer: (B)
46. During September, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour hours of active working.
Rs 14 Rs 16.50 Rs 17.50 Rs 18 View answer Correct answer: (A)
47. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget?
Capital cost of a new collection vehicle Depreciation of the machinery Operatives wages Fuel for the collection Vehicles View answer Correct answer: (B)
48. A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order should the following budgets be prepared?
Sales budget Cash budget Production budget Purchase budget Finished goods inventory budget (2), (3), (4), (5), (1) (1), (5), (3), (4), (2) (1), (4), (5), (3), (2) (4), (5), (3), (1), (2) View answer Correct answer: (B)
49. A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour hours of 2,750 at Rs25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5per Kg. Output was 2,950 Kg. What is the value of the output?
Rs 142,485 Rs 146,183 Rs 149,746 Rs 152,986 View answer Correct answer: (A)
50. State which of the following are the characteristics of service costing.
High levels of indirect costs as a proportion of total costs Use of composite cost units Use of equivalent units (1) only (1) and (2) only (2) only (2) and (3) only View answer Correct answer: (B)