Accounting Mcqs

Page No. 34

A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is


a792


b820


c840


d864


View Answer 864

If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.


a8,000 units


b11,000 units


c10,000 units


d9,000 units


View Answer 10,000 units

Consider the following data pertaining to the production of a company for a particular month : 0 Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is


a65,025


b94,287


c95,020


d1,52,624


View Answer 65,025

A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be


a37.50


b38.25


c24.00


d35.00


View Answer 24.00

If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.


a0.65


b0.35


c1.50


d5.29


View Answer 0.65

Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?


a5,80,000


b5,50,000


c5,00,000


d5,75,000


View Answer 5,80,000

The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :


aUncontrollable cost


bSunk cost


cAvoidable cost


dOpportunity cost


View Answer Sunk cost

Which of the following bases is not appropriate for apportionment of Transport department‘s cost ?


aCrane hours


bCrane value


cTruck Mileage


dTruck value


View Answer Crane value

Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is


a111%


b120%


c95%


d117%


View Answer 111%

The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?


aDirect cost


bVariable cost


cCommercial cost


dConversion cost


View Answer Commercial cost

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