Cost and Managerial Accounting
451. It is possible for an item of overhead expenditure to be shared amongst many departments. It is also possible that this same item may relate to just one specific department. If the item was not charged specifically to a single department this would be an example of:
- Apportionment
- Allocation
- Re-apportionment
- Absorption
Correct answer: (A)
Apportionment
452. Beginning goods in process were 15,000. The cost of goods manufactured is 245,000. What is the cost assigned to the ending goods in process?
- 45,000
- 15,000
- 30,000
- There will be no ending Inventory
Correct answer: (D)
There will be no ending Inventory
453. The Inventory Turnover ratio is 5 times and numbers of days in a year is 365.Inventory holding period in days would be
- 100 days
- 73 days
- 50 days
- 10 days
Correct answer: (B)
73 days
454. In furniture manufacturing use of nail, pins, glue, and polish which use to increase its esteem value that cost is treated as:
- Direct material cost
- Indirect material cost
- FOH cost
- Prime cost
Correct answer: (B)
Indirect material cost
455. If a predetermined FOH rate is not applied and the volume of production is reduced from the planned capacity level, the cost per unit expected to:
- Remain unchanged for fixed cost and increase for variable cost
- Increase for fixed cost and remain unchanged for variable cost
- Increase for fixed cost and decrease for variable cost
- Decrease for both fixed and variable costs
Correct answer: (B)
Increase for fixed cost and remain unchanged for variable cost
456. 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
Correct answer: (C)
Cost of goods manufactured
457. Which of the following would be considered a major aim of a job order costing system?
- To determine the costs of producing each job or lot
- To compute the cost per unit
- To include separate records for each job to track the costs
- All of the given option.
Correct answer: (D)
All of the given option.
458. 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
Correct answer: (A)
2,175 kg
459. Which of the following ratios expressed that how many times the inventory is turning over towards the cost of goods sold?
- Net profit ratio
- Gross profit ratio
- Inventory turnover ratio
- Inventory holding period
Correct answer: (C)
Inventory turnover ratio
460. What is the company's margin of safety in?
- 1,600,000
- 2,400,000
- 25,60,000
- None of the given options
Correct answer: (C)
25,60,000