The partial or
completed units of manufactured goods that does not meet customer
specifications and are sold at reduced price or simply discarded are called
Rework
Scrap
Spoilage
None of the above
The potential
benefit that is given up when one alternative is selected over another
Opportunity
cost
Differential cost
Sunk cost
Process cost
Which of the
following incentive method of wage payment is most suitable where quality and
accuracy of work is of primary
importance
Time rate
system
Piece rate system
Halsey premium system
Differential piece work system
Cost that are
always relevant in decision making are
Fixed costs
Sunk costs
Variable costs
Avoidable costs
The calculation of product cost, gathering information for
planning and analyzing information for decisions are features of
information accounting
cost
accounting
analyzing accounts
marketing costs
The inventory which consists of partially worked goods or
work in progress is called
direct materials inventory
work
in process inventory
finished goods inventory
indirect material inventory
In balance sheet, all the costs of the product that
must be considers as assets in it and it is said to be
factory overhead costs
manufacturing overhead costs
Inventoriable
costs
finished costs
In the income statement of manufacturing companies, the period cost
consists of
inventory costs
product costs
non-manufacturing
costs
manufacturing costs
The acquisition cost of raw material to be used in the
manufacturing and become component of cost object is classified as
direct
material costs
indirect material costs
direct labor costs
indirect labor costs
The wages and other benefits provided to assembly line
workers and operators of machine is classified as
work in process cost
finished costs
direct manufacturing labor costs
indirect
manufacturing labor costs
The labor which works as forklift truck, plant guards and the rework
labor is classified as
prime overhead
conversion overhead
factory overhead
manufacturing
overhead
The inventory of the final goods that are not yet sold is
called
finished
goods inventory
indirect material inventory
direct materials inventory
work in process inventory
In costing of project, the wages paid to workers for the
unproductive work at the time of material shortages is classified as
indirect wages
health wages
idle
time wages
shortage time wages
Which of the following
cost is linked with the calculation of
cost of inventories?
Product
cost
Period cost
Both product and period cost
Historical cost
The type of process loss that should not affect the cost of inventories is
Period cost
Both product and period cost
Historical cost
The type of process loss that should not affect the cost of inventories is
Seasonal loss
Normal loss
Abnormal loss
Standard loss
In a job order
cost system, indirect labor cost would be recorded as a debit of
Raw material
Work in process
Manufacturing
overhead
Finished goods
The budget or
scheduled that provides necessary input data for the direct material budget is
the
Cash
budget
Production
budget
Raw material purchase budget
Schedule of cash collections
Which method
gives the lowest cost of materials and high cost of ending inventory and
highest gross profit
LIFO
Average cost method
Specific identification
FIFO
The decision
model to calculate optimal quantity of inventory to be ordered is called
Efficient order quantity
Rational order quantity
Optimized order quantity
Economic order
quantity
The most
suitable costing system where the product differ in type of materials used
Process costing
Job costing
Activity Base costing
Absorption costing
A detailed plan showing how cash resources will be acquired and used over a specific time period.
Labor budget
Cash budget
Master budget
Continuous budget
When price
fluctuate widely the method that will smooth out the effect of fluctuations is
LIFO
FIFO
Weighted
average
Simple average
Any cost that
differs between alternatives in a decision making situation
Product cost
Opportunity cost
Differential
cost
Process costing
The cost of
issuing purchase orders, making of delivery records for tracking payments and
cost of inspection of items are classified as
Ordering costs
Stock-out
costs
Carrying
costs
Purchasing
costs
Variable cost per unit includes
Varies when output varies
Increase
when output increases
Remain constant
Decrease
when output decreases
Machine lubricant used on processing equipment in a manufacturing plant would be classified as a:
Period cost (manufacturing overhead)
Period cost (Selling, General & Admin)
Product cost (manufacturing overhead)
Product cost (Selling, General & Admin)
An average cost is also known as:
Variable cost
Unit cost
Total cost
Fixed cost
Finished goods inventory costs represent the costs of goods that are:
Currently being worked on
Waiting to be worked on
Waiting to be sold
Already delivered to customers
Which of the following is deducted from purchases in order to get the value of Net purchases?
Purchases returns
Carriage inward
Custom duty
All of the given options
Which of the following is correct?
Units sold= Opening finished goods units + Units produced – Closing finished goods units
Units Sold = Units produced + Closing finished goods units - Opening finished goods units
Units sold = Sales + Average units of finished goods inventory
Units sold = Sales - Average units of finished goods inventory
In cost Accounting, normal loss is/are charged to:
Factory overhead control account
Work in process account
Income Statement
All of the given options
Material requisition is a document that supports the requirement of the material. This document is sent to store in charge and approved by:
Store manager
Production manager
Supplier manager
Purchase manager
Over applied FOH will always result when a predetermined FOH rate is applied and:
Production is greater than defined capacity
Actual overhead costs are less than budgeted
Budgeted capacity is less than normal capacity
Actual overhead incurred is less than applied Overhead
Which of the following would be considered as factory overhead using a job order cost system?
Direct materials
Direct labor
Depreciation on factory buildings
Salesperson's salary
At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT:
Number of units in the beginning work in process
Number of units sold
Number of units in the ending work in process and their estimated stage of completion
Number of units completed
In order to compute equivalent units of production, which of the following must be reasonably estimated?
Units
The percentage of completion
Direct material cost
Units started and completed
Which of the given cost does not become the part of cost unit?
Advertising expenses
Direct labor cost
Factory overhead cost
Cost of raw material
Which of the given cost becomes the part of cost unit?
Direct material cost
Factory overhead
Direct labor cost
All of the given options
The main difference between the profit center and investment center is
Decision making
Revenue generation
Cost incurrence
Investment
The Economic Order Quantity is the amount of inventory to be ordered at one time for purpose to minimize
Conversion cost
FOH cost
Inventory cost
Prime cost
TO whom purchase order form is issued to place an order
Work station incharge
Store incharge
Supplier
Manager
What type of information CANNOT get from bin card
It provides the information for Reorder level
It provides the information for Economic order quantity
It provides the information for Maximum daily consumption
It provides the information for Cost of material consumed
Which of the following groups of workers would be classified as indirect labor?
Machinists in an organization manufacturing clothes
Bricklayers in a house building company
Maintenance workers in a shoe factory
None of the given options
Taylor's Differential Piece Rate Plan based on _____________piece rates is fixed.
Two
Three
Four
Five
Meerick Differential Piece Rate Plan based on _____________piece rates is fixed.
Two
Three
Four
Five
Depreciation of building expense is an example of factory overhead which is apportioned on the basis of:
Capital value
Departmental payroll
Area in square feet or cubic feet
Number of workers
In
which of the situation spending variance will give favorable result?
Actual factory overhead is less than absorbed factory overhead
Actual factory overhead is greater than absorbed factory overhead
Budgeted factory overhead for actual volume is greater than actual factory overhead
Absorbed factory overhead less than budgeted factory overhead for actual volume
