vu mgt402 Final Term - Quiz No.9
vu mgt402 Cost & Management Accounting Quiz
This quiz belongs to book/course code vu mgt402 Cost & Management Accounting of vu organization. We have 14 quizzes available related to the book/course Cost & Management Accounting. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: FOH absorption rate is calculated by the way of:
Estimated FOH Cost/Direct labor hours
Estimated FOH Cost/No of units produced
Estimated FOH Cost/Prime Cost
All of the given options
Question 2: Alpha company purchased a machine worth Rs 200,000 in the last year.Now that machine can be use in a new project which company has received this year. Now the cost of that machine is to be called:
Project cost
Sunk cost
Opportunity cost
Relevant cost
Question 3: Period costs are __________
Expensed when the product is sold
Included in the cost of goods sold
Related to specific Period
Not expensed
Question 4: Which of the following cannot be used as a base for the determination of overhead absorption rate?
Number of units produced
Prime cost
Conversion cost
Discount Allowed
Question 5: The main purpose of cost accounting is to __________
Maximize profits
Help in inventory valuation
Provide information to management for decision making
Aid in the fixation of selling price
Question 6: The difference over the period of time between actual and applied FOH will usually be minimal when the predetermined overhead rate is based on:
Normal capacity
Designed capacity
Direct Labor hours
Machine hours
Question 7: Which of the following statement is correct regarding reasons of variance?
Difference between capacity level over which overhead absorption rate is calculated & capacity level attained.
Difference between FOH cost budgeted or estimated over which overhead absorption rate and FOH actually incurred.
Difference between the actual level which company achieved and budget level which company determined.
All of the given
Question 8: Under Periodic Inventory system Purchase of inventory is treared as:
Assets
Expense
Income
Liability
Question 9: Cost accounting concepts include all of the following EXCEPT:
Planning
Controlling
Sharing
Costing
Question 10: The danger Level can be calculated?
Average consumption x Lead time to get urgent supplies
Normal consumption x Lead time to get urgent supplies
Maximum consumption x Lead time to get urgent supplies
Minimum consumption x Lead time to get urgent supplies
