M.Com 1 cost and mgmt acctg unit 1 and 2

Audit fees paid to auditors is part of

• Administration Cost

• Production cost

• Selling & Distribution cost

• Not shown in cost sheet

Which of these is not an objective of Cost Accounting?

• Ascertainment of Cost

• Determination of Selling Price

• Cost Control and Cost reduction

• Assisting Shareholders in decision making

Fixed cost is a cost:

• Which changes in total in proportion to changes in output

• Which is partly fixed and partly variable in relation to output

• Which do not change in total during a given period despise changes in output

• Which remains same for each unit of output

Overhead refers to:

• Direct or Prime Cost

• All Indirect costs

• Only Factory indirect costs

• Only indirect expenses

Marginal costs is taken as equal to

• Prime Cost plus all variable overheads

• Prime Cost minus all variable overheads

• Variable overheads

• None of the above

Which of the following formula cannot be used for calculating the P/V ratio?

• (Sales value minus variable cost) / Sales value

• (Fixed cost plus profit)/Sales value

• Change in profits/Change in sales

• Profit/Sales value

Composite cost unit for a hospital is:

• Per patient

• Per patient-day

• Per day

• Per bed

Which of these is not an objective of Cost Accounting?

• Ascertainment of Cost

• Determination of Selling Price

• Cost Control and Cost reduction

• Assisting Shareholders in decision making

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000

• Rs. 1,80,000

• Rs. 2,00,000

• Rs. 1,70,000

• Rs. 2,10,000

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 96,000 Budgeted sales for a period - 30,000 units The margin of safety, expressed as a percentage of budgeted sales,is:

• 20%

• 25%

• 73%

• 125%