Cost Accounting - FYBCOM

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

Cost Unit is defined as

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

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

• Centres having the responsibility of generating and maximising profits

• Centres concerned with earning an adequate return on investment

Element/s of Cost of a product are:

• Material only

• Labour only

• Expenses only

• Material, Labour and expenses

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

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

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

Rent for warehouses is a component of what cost?

• Production cost

• Cost of factory 

• Prime cost

• Distribution cost

What is the tender cost sheet ?

• Estimation of the cost

• Estimation of the price at which it will be sold.

• Estimation of units

• Estimation of profits

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

• implicit cost

• variable cost

• fixed cost

• explicit cost