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Cost Accounting - FYBCOM

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of these is not an objective of Cost Accounting?

a)

Ascertainment of Cost

b)

Determination of Selling Price

c)

Cost Control and Cost reduction

d)

Assisting Shareholders in decision making

2.

Cost Unit is defined as

a)

Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed

b)

A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control.

c)

Centres having the responsibility of generating and maximising profits

d)

Centres concerned with earning an adequate return on investment

3.

Element/s of Cost of a product are:

a)

Material only

b)

Labour only

c)

Expenses only

d)

Material, Labour and expenses

4.

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

a)

Rs. 1,80,000

b)

Rs. 2,00,000

c)

Rs. 1,70,000

d)

Rs. 2,10,000

5.

Total cost of a product: Rs. 10,000 Profit: 25% on Selling Price Profit is:

a)

Rs. 2,500

b)

Rs. 3,000

c)

Rs. 3,333

d)

Rs. 2,000

6.

Re-order level is calculated as:

a)

Maximum consumption x Maximum re-order period

b)

Minimum consumption x Minimum re-order period

c)

1/2 of (Minimum + Maximum consumption)

d)

Maximum level - Minimum level

7.

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%

a)

310

b)

400

c)

290

d)

300

8.

Rent for warehouses is a component of what cost?

a)

Production cost

b)

Cost of factory 

c)

Prime cost

d)

Distribution cost

9.

What is the tender cost sheet ?

a)

Estimation of the cost

b)

Estimation of the price at which it will be sold.

c)

Estimation of units

d)

Estimation of profits

10.

Salary paid to permanent employees is an example of what cost?

a)

implicit cost

b)

variable cost

c)

fixed cost

d)

explicit cost