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

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

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