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WorksheetsAPT MA Quiz 1
Total questions: 30
Worksheet time: 15mins
Form of specific order costing where work is undertaken to customer's special requirements and each order is comparatively of short duration.
Job Order Costing
Batch Costing
Contract Costing
Process Costing
A company has to pay Rs. 10,000 per unit royalty to the designer of a product which it manufactures and sells. The royalty charge would be classified as a
Direct expense
Production overhead
Administrative overhead
Selling overhead
Which of the following is not a component of prime cost?
Direct materials
Direct labour
Direct expenses
Overhead
Recruitment costs
shall form part of Prime Cost
shall form part of Works Cost
shall form part of Overheads
shall be ignored
Cost that cannot be changed by any present and future decision, therefore irrelevant cost.
Variable Cost
Fixed Cost
Sunk Cost
Relevant Cost
Which of the following does not represents the characteristics of Management Accounting?
Helps in finding out cost of products and control costs
Measures the operating efficiency of the enterprise
Helps in identifying the financial position of the business
Process of determining and accumulating the cost of products or activity
Please select the most appropriate answer for the statement.
A cost center and a cost unit are the same
YES. Both are used to ascertain cost
YES. Both are used for cost control
NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service.
Which of the following is true about the behavior of fixed and variable costs?
Total FC changes with output.
Per unit FC reduces when output increases.
Total VC does not change with output.
Per unit VC reduces when output increases.
Companies are incurring extra costs for providing work from home facilities to employees during the current pandemic. Identify whether these are controllable or non controllable costs.
Controllable
Non controllable
We need further information to arrive at a decision as whether a cost is controllable or non controllable depends on the level of management authority .
Cost accounting is needed most by which type of user?
Internal users
External users
What is the reporting frequency for management accounting?
Once at the end of accounting period
As frequently as information needed for decision making purposes
What is the roles of management accountant?
Provide budgeting information and accounting reports
Responsible for carrying out the task of helping the management in making decision for production and process
Assist departments in achieving the organization objectives by assigning the appropriate costs
All of the above
What is the cost unit for electricity cost used for machinery?
Kilowatt hours
Litres
Tonnes
Square feet
Patient nights is the cost unit to ascertain cost of.....
Hotel
Hospital
Home-stay
Accommodation services (AirBNB)
Choose the most appropriate answer for the question.
Why management of a company need to know the cost of a product?
To make the products famous
To determine the selling price
To determine the GST
To promote the product in social media
Which of the following would not be a period cost?
research and development
direct materials
advertising costs
office supplies
Which of the following information is not TRUE about abnormal cost?
Costs that have not been planned for
Is not charged to the cost of production; transferred to profit and loss account
Is part of production costs
Not normally incurred at a given level of production
Companies may choose to use variable costing because it
accords with GAAP
is useful for external reporting
is most useful for management decision making
provides the gross margin
A factor that causes or leads to a change in a cost or activity is a(n)
intercept
driver
slope
cost object
The accountant wants to assign costs to boxes of biscuits. Which costs can be traced directly to boxes of biscuits?
The cost of flour and baking soda
The cost of packing labor
The wages of the mixing labor
All of these
Which of the following is an indirect cost?
The cost of restriping the parking lot at a perfume factory
The cost of bottles in a shampoo factory
The cost of denim in a jeans factory
All of the above
The contribution margin is the
difference between sales and total cost
difference between sales and total variable cost
amount by which sales exceed total fixed cost
difference between sales and operating income
Contribution Margin Ratio is calculated
(Sales-Variable costs)/Fixed costs
Contribution margin/Fixed costs
(Sales-Variable costs)/Sales revenue
Contribution margin/Variable costs
What is standard cost?
The average unit cost of product produced by other companies.
The average unit cost of product produced in the current period.
The budgeted unit cost of product produced in a particular period.
The average unit cost of product produced in the previous period.
Which of the following would probably be a variable cost in a soda bottling plant?
None of these
Time spent by adjusters to evaluate accidents
Application forms
The salary of customer service representatives
