Cost Accounting

FULL NAME (BLOCK LETTER)

ENROLMENT NO

Basic objectives of cost accounting is.....................

• tax compliance.

• financial audit.

• cost ascertainment.

• profit analysis.

Overhead cost is the total of

• All indirect costs

• All direct costs

• direct and indirect costs

• All specific costs

Cost accounting was developed because of the.................

• limitations of the financial accounting

• limitations of the management accounting

• limitations of the human resource accounting

• limitations of the double entry accounting

Indirect material used in production is classified as.......

• Selling OH

• Production OH

• Distribution OH

• Administrative OH

Re-order level is calculated as:

• Maximum consumption x Maximum re-order period

• Minimum consumption x Minimum re-order period

• 1/2 of (Minimum + Maximum consumption)

• Maximum level - Minimum level

ABC analysis is an inventory control technique in which:

• Inventory levels are maintained

• Inventory is classified into A, B and C category with A being the highest quantity, lowest value

• Inventory is classified into A, B and C Category with A being the lowest quantity, highest value

• Either b or c.

Which one out of the following is not an inventory valuation method?

• LIFO

• FIFO

• Weighted Average

• EOQ

.

Calculate EOQ (approx.) from the following details:

Annual Consumption: 24000 units

Ordering cost: Rs. 10 per order

Purchase price: Rs. 100 per unit

Carrying cost: 5%

• 310

• 400

• 290

• 300