Quiz-1 Cost and Management Accounting

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

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

• can not

• can

• may or may not

• must

Element/s of Cost of a product are

• Material only

• Labour only

• Expenses only

• Material, Labour and expenses

Conversion cost includes cost of converting……….into……..

• Raw material, WIP

• Raw material, Finished goods

• WIP, Finished goods

• Finished goods, Saleable goods

Describe the method of costing to be applied in case of Nursing Home

• Operating Costing

• Process Costing

• Contract Costing

• Job Costing

Describe the cost unit applicable to the Bicycle industry

• per part of bicycle

• per bicycle

• per tonne

• per day

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

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

• Rs. 2,500

• Rs. 3,000

• Rs. 3,333

• Rs. 2,000

Calculate value of closing stock from the following:

Opening stock of finished goods (500 units) : Rs. 2,000

Cost of production (10000 units) : Rs. 50,000

Closing stock (1000 units):?

• Rs. 4,000

• Rs. 4,500

• Rs. 5,000

• Rs. 6,000

Overhead refers to:

• Direct or Prime Cost

• All Indirect costs

• only Factory indirect costs

• Only indirect expenses