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 View answer Correct answer: (A)
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 View answer Correct answer: (D)
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 View answer Correct answer: (B)
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 View answer Correct answer: (B)
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 View answer Correct answer: (B)
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 View answer Correct answer: (C)
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. View answer Correct answer: (D)
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 View answer Correct answer: (A)
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 View answer Correct answer: (C)
460. What is the company's margin of safety in?
1,600,000 2,400,000 25,60,000 None of the given options View answer Correct answer: (C)