Management Accounting Set 24

Q1 | A document which provides for the detailed cost centre and cost unit is _______.

Q2 | An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as

Q3 | To establish an effective system of standard costing it is essential that1) The technical process of operation should be prone to planning2) The cost of the products should be given3) The process or operating costs of products should be provided4) The standard costing should be consistent with the technical procedure of the production of the specific entity

Q4 | An officer responsible for financial operations of organization is considered as

Q5 | Which of the following are the assumptions of marginal costing?1) All the elements of cost can be divided into fixed and variable components.2) Total fixed cost remains constant at all levels of output.3) Total variable costs vary in proportion to the volume of output.4) Per unit selling price remain unchanged at all levels of operating activity.

Q6 | Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?

Q7 | The cost per unit of a product manufactured in a factory amounts to Rs 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs per unit.

Q8 | In master budgeting, the cost drivers for manufacturing overhead costs are

Q9 | Which of the following is incorrect about the statement of cash flows?

Q10 | If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be

Q11 | Cash flow example from an operating activity is

Q12 | During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were:

Q13 | Batch Costing is useful in determining:

Q14 | Overhead Cost is the total of

Q15 | Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is

Q16 | The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis?

Q17 | An annual report is issued by company to its :

Q18 | Which of the following statement is correct ?

Q19 | The process of budgeting includes

Q20 | The labour engaged in the making of a product is known as _______

Q21 | Cash from Operations is equal to:

Q22 | Margin of safety can be increased by

Q23 | When profit-volume ratio is 40 % and sales value Rs.10,000, the variable costs will be :

Q24 | Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.

Q25 | When margin of safety is 20% and P/V ratio is 60%, the profit will be :