15 Nov 2014

Cost Accounting Mcqs Set 3


Cost Accounting Multiple Choice Questions ( MCQS) Page-7. The following Cost Accounting Questions from different Past Papers etc, PPSC Past Papers, Fpsc Pass Papers, NTS and also from MCQS Bank. These Questions are helpful for the preparation of Written test for the Posts of Accountant, Cost Accountant, Auditor and any for any Accounts Related Jobs Tests.

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Multiple Choice Questions on Cost Accounting


300. Which of the following is not a method of pricing raw material issues from stock?

a. Standard costing.
b. Unit cost.
c. Marginal cost.
d. Continuous weighted average.

301. Which of the following is a direct labour cost?

a. Supervisors‘ salaries in the factory.
b. Costs of the payroll accounting section.
c. A bonus paid to the storeman.
d. The wages of an operative paid on the basis of output achieved.

302. Production overheads are absorbed into production units by the use of an overhead absorption
rate. Which one of the following best describes how the absorption rate is calculated?

a. Total number of units produced divided by the total cost centre overheads.
b. Total number of units produced multiplied by the unit overhead cost.
c. Total cost centre overheads divided by the cost centre activity level.
d. Total indirect costs for the business divided by the total number of units produced.

[Hint : (d) would produce an overhead absorption rate, but it would be far too generalised to be of
any practical use to the business ]

303. Sales commissions are classified as

a. Prime costs
b. Period costs
c. Product costs
d. Indirect labour

304. XYZ Ltd has the following data relating to its assembly plant in the year ended 31 December 2012:
`’000
Direct material costs 500
Direct labour cost 250
Assembly plant indirect costs 100
In addition, the stores department has total costs of ` 30,000 and spends 50% of its time servicing
the assembly plant. There were 50,000 labour hours worked and 25,000 machine hours run in the
assembly plant in 2012.
The overhead cost per direct labour hour was:

a. ` 2.0
b. ` 4.0
c. ` 2.3
d. ` 4.6

[Hint : The overhead cost per labour hour is ` 1,00,000 plus 50% of the stores costs `15,000, =
`1,15,000 divided by 50,000 hours.

305. If a company uses predetermined overhead recovery rates and at the end of a period finds that
there has been an under-recovery of overhead, which of the following best explains how the 
under-recovery has occurred?

a. Actual overhead cost has exceeded the amount used as a basis for the establishment of the
predetermined rate.
b. Actual overhead cost has been less than the amount used as a basis for the establishment of
the predetermined rate.
c. Actual activity levels were higher than planned due to an increase in demand.
d. An expected price increase in the overhead costs which was built into the overhead
recovery rate did not take place.

[Hint : (b), (c) and (d) would lead to over-recovery of overheads.]

306. If there has been an over recovery of overheads, at the end of the accounting period the amount
concerned should be?

a. Debited to the company profit and loss account.
b. Credited to the company profit and loss account.
c. Carried forward to the next accounting period as a cost saving.
d. Used to reduce next period‘s overhead recovery rate.

[Hint : Variances should always be dealt with in the profit and loss account for the period they
relate to.]

307. A variable cost is?

a. One which varies in proportion to the level of fixed cost incurred.
b. One which tends to vary with the level of activity.
c. One which changes over time.
d. One which cannot be estimated with any great degree of accuracy.

308. The term ‗contribution‘ refers to?

a. The actual amount of profit made per unit.
b. The budgeted profit per unit.
c. The amount of profit which goes towards meeting the overheads of the business.
d. The difference between sales revenue and variable costs per unit.
[Hint : Contribution only becomes profit when fixed costs have been covered in full.]

309. The break-even point is that at which:

a. The level of activity at which the business operates most economically.
b. The level of activity at which the business makes neither a profit nor a loss.
c. The fixed costs are lowest.
d. The variable cost per unit is minimized.

310. When a business is faced with a limiting factor (one which limits the activity of an entity) and 
there
is a choice to be made between options to follow, which of the following statements describes the
optimal course of action?

a. Choose the option which gives the highest unit profit.
b. Choose the option which gives the highest unit contribution.
c. Aim to achieve a balance of activities covering all of the options.
d. Choose the option which gives highest contribution per unit of limiting factor.

[Hint : (d) would give the optimal course of action in financial terms. Sometimes, where resource
constraints operate in ‗not for profit organizations‘, other non-financial factors may mean that a
sub-optimal course of action is followed.]

311. XYZ Ltd has the following alternative planned activity levels:
Level A Level B Level C
Total costs ` 1,00,000 ` 1,50,000 ` 2,00,000
Number of units produced 5,000 10,000 15,000
(Fixed overhead remains constant over the activity range shown.)
The fixed overhead cost per unit is:

a. ` 20.00
b. `15.00
c. `13.33
d. `10.00

[Hint : The total cost increased by ` 1,00,000 in moving from Level A to Level C, therefore if fixed
overheads are constant, variable costs are ` 1,00,000 for 10,000 units, which = `10/unit. At Level A,
total cost is ` 20/unit so fixed overheads absorbed on a unit basis are `10.]

312. Which of the following statements regarding marginal costing is incorrect?

a. It is a useful long-term planning technique.
b. It assumes that fixed costs remain fixed over relevant activity ranges.
c. It assumes that other costs vary in proportion to activity.
d. It assumes that costs can be classified as variable or fixed.

[Hint : (b), (c) and (d) are characteristics of the marginal costing approach which render it less
than useful as a long-term decision-making technique, hence (a) is correct.]

313. Which phrase best describes the current role of the managerial accountant? 

a. Managerial accountants prepare the financial statements for an organization.
b. Managerial accountants facilitate the decision-making process within an organization.
c. Managerial accountants make the key decisions within an organization.
d. Managerial accountants are primarily information collectors.

314. LG has incurred cost of ` 60,000 for material. Further it incurred ` 35,000 for labor and ` 70,000 for 
factory overhead. There was no beginning and ending work in process. 7,500 units were 
completed and transferred out. What would be the unit cost for material? 

a. ` 22
b. ` 16
c. ` 14
d. ` 8

315. Manufacturing costs typically consist of 

a. Direct materials, direct labor, and manufacturing overhead.
b. Production and shipping costs.
c. Production and marketing costs.
d. Direct materials, direct labor, marketing and administrative costs.
316. In comparison to the traditional manufacturing environment, overhead costs in a JIT environment 
all the following are true except: 

a. Are more easily tracked to products.
b. Are frequently direct in nature.
c. Include rent, insurance and utilities.
d. Most of the costs are likely to be indirect in nature.

317. As production increases within the relevant range

a. Variable costs will vary on a per unit basis.
b. Variable costs will vary in total.
c. Fixed costs will vary in total.
d. Fixed and variable cost stay the same in total.

318. You are given the cost and volume information below: 
Volume Cost
1 unit ` 15 
10 units `150 
100 units `1500 
What type of a cost is given? 

a. Fixed cost
b. Variable cost
c. Step cost
d. Mixed cost

319. Which of the following statements regarding graphs of fixed and variable costs is true? 

a. Variable costs can be represented by a straight line where costs are the same for each data
point.
b. Fixed costs can be represented by a straight line starting at the origin and continuing through
each data point.
c. Fixed costs are zero when production is equal to zero.
d. Variable costs are zero when production is equal to zero.

320. ABC Ltd. has three product lines - A, B, and C. 
A B C Total
Total Sales `10,000 9,000 12,000 31,000 
Variable costs 4,500 7,000 6,000 17,500
Contribution Margin 5,500 2,000 6,000 13,500 
Fixed costs 3,500 6,000 3,000 12,500
Net income 2,000 (4,000) 3,000 1,000 
Product line B appears unprofitable, and management is considering discontinuing the line. How 
would the discontinuation of Product line B affect net income? 

a. Increase by $4,000
b. Decrease by $4,000
c. Increase by $2,000
d. Decrease by $2,000

321. Coed Novelties manufactures key chains for college bookstores. During 2012, the 
company had the following costs: 
Direct materials used ` 31,000; Direct labor ` 18,000; Factory rent ` 12,000; Equipment deprecation –
factory ` 2,000; Equipment depreciation – office ` 750; Marketing expense ` 2,500; Administrative 
expenses ` 40,000 
35,000 units produced were in 2003. 
What is the product cost per unit? 

a. Approximately `1.24
b. `1.80
c. Approximately ` 3.04
d. `1.40

322. The Cape Cod Cotton Candy Company had the following information available regarding last 
year's operations: 
Sales (100,000 units) ` 2,00,000 ; Variable costs ` 1,00,000; Contribution margin ` 1,00,000; Fixed 
costs ` 50,000; Net Income ` 50,000 
If sales were to increase by 200 units, what would be the effect on net income? 

a. `400 increase
b. `200 increase
c. `150 increase
d. ` 200 loss

323. If B Limited shows required production of 120 cases of product for the month, direct labor per case is 3 hours at Rs. 12 per hour. Budgeted labor costs for the month should be: 

a. ` 360
b. ` 1,440
c. ` 4,320
d. ` 5,346

324. A firm, which makes yachts, has fixed costs of ` 260,000 per month. The product sells for ` 35,000 
per boat, and the variable costs of production are ` 15,000 per boat. The boatyard can 
manufacture 20 boats each month. What is the firms‘ margin of safety at the moment? 

a. 20%
b. 35%
c. 54%
d. 57%

325. Janet sells a product for ` 6.25. The variable costs are ` 3.75. Janet's break-even units are 35,000. What is the amount of fixed costs? 


a. ` 87,500
b. ` 35,000
c. ` 131,250
d. ` 104,750

326. Good Job Plc makes one product which sells for ` 80 per unit. Fixed costs are ` 28,000 per month and marginal costs are ` 42 a unit. What sales level in units will provide a profit of ` 10,000? 


a. 350 units
b. 667 units
c. 1,000 units
d. 1,350 units

327. If computational and record-keeping costs are about the same under both FIFO and weighted 
average, which of the following method will generally be preferred? 

a. Weighted Average
b. FIFO
c. They offer the same degree of information
d. Cannot be determined with so little information

328. A business always absorbs its overheads on labor hours. In the 8th period, 18,000 hours were 
worked, actual overheads were ` 279,000 and there was ` 36,000 over-absorption. The overhead 
absorption rate per hours was: 

a. ` 15.50
b. ` 17.50
c. ` 18.00
d. ` 13.50

329. Bharat Ltd estimated that during the year 75,000 machine hours would be used and it has been 
using an overhead absorption rate of ` 6.40 per machine hour in its machining department. During 
the year the overhead expenditure amounted to ` 472,560 and 72,600 machine hours were used. 
Which one of the following statements is correct? 

a. Overhead was under-absorbed by ` 7,440
b. Overhead was under-absorbed by ` 7,920
c. Overhead was over-absorbed by ` 7,440
d. Overhead was over-absorbed by ` 7,920

330. Inventory of ` 96,000 was purchased during the year. The cost of goods sold was ` 90,000 and the ending inventory was ` 18,000. What was the inventory turnover ratio for the year? 


a. 5.0
b. 5.3
c. 6.0
d. 6.4

331. The FIFO inventory costing method (when using under perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways? 


a. First to be allocated to the ending inventory
b. Last to be allocated to the cost of goods sold
c. Last to be allocated to the ending inventory
d. First to be allocated to the cost of good sold

332. High Class Interiors had beginning merchandise inventory of ` 75,000. It made purchases of 
`160,000 and recorded sales of ` 220,000 during January. Its estimated gross profit on sales was 
30%. On January 31, the store was destroyed by fire. What was the value of the merchandise 
inventory loss? 

a. ` 154,000
b. ` 160,000
c. `. 235,000
d. ` 81,000

333. Where there is mass production of homogeneous units or where few products are produced in 
batches, which of the following cost driver would be regarded as best base for the determination of 
Factory overhead absorption rate? 

a. Number of units produced
b. Labor hours
c. Prime cost
d. Machine hours

334. Which of the following is a factor that should be taken into account for fixing re-order level?

a. Average consumption
b. Economic Order Quantity
c. Emergency lead time
d. Danger level

335. The contribution margin increases when sales volume and price remain the same and: 

a. Variable cost per unit decreases
b. Variable cost per unit increases
c. Fixed costs per unit increase
d. All of the given options

336. Opening work in process inventory can be calculated under which of the following method? 

a. FIFO and Average costing
b. LIFO and Average costing
c. FIFO and LIFO costing
d. None of given options

337. _____________________ is a part of cost of production report that explains the cost incurred during the process. 

a. Quantity schedule
b. Cost accounted for as follow
c. Cost charged to the department
d. None of the given options

338. A company makes one product, which has variable manufacturing costs of ` 3.25 per unit and 
variable selling and administrative costs of ` 1.17 per unit. Fixed manufacturing costs are ` 42,300 
per month and fixed selling and administrative costs are ` 29,900 per month. The company wants 
to earn an average monthly profit of ` 15,000 and they expect to produce and sell an average of 
40,000 units of the product per month. What is the minimum selling price management can be 
expected to set to meet their profitability goals? 

a. ` 4.69
b. ` 4.42
c. ` 6.60
d. ` 6.23

339. A cost that remains unchanged across the relevant range of units produced is what kind of cost?

a. Fixed cost
b. Product cost
c. Mixed cost
d. Period cost

340. A company has the following cost data for the month: 
Conversion cost: `. 78,900; Prime Cost: ` 115,700; Beginning Work in Process Inventory: ` 4,700; 
Ending Work in Process Inventory: ` 2,800; Beginning Finished Goods Inventory: ` 27,600; Ending 
Finished Goods Inventory: ` 29,200; Manufacturing Overhead Costs: ` 14,500.
What is the Cost of Goods Sold for the month? 

a. ` 132,100
b. ` 116,000
c. ` 130,200
d. ` 130,500

341. Material cost = ` 4.00 per unit; Labor cost = Re. 0.60 per unit; Factory overhead cost = ` 1.00 per unit; Administrative cost = ` 1.20 per unit; Selling cost = 15% of sales; Profit = ` 1.02 per unit.
What will be the sales price per unit? 

a. 6.0
b. 9.2
c. 7.0
d. None of the given option

342. ABC & Company has maintained the following data of inventory control Under the periodic 
inventory system: 
Date Units Total
Jan 01 100 @ ` 10 ` 1000 
Jan 05 100 @ ` 11 ` 1100 
Jan 10 150 @ ` 12 ` 1600 
During the period 300 units were sold. 
Calculate the cost of ending inventory under FIFO method. 

a. 600
b. 500
c. 400
d. 300

343. National chains of tyre fitters stock a popular tyre for which the following information is available: 
Average usage = 140 tyres per day 
Minimum usage = 90 tyres per day 
Maximum usage = 175 tyres per day 
Lead time = 10 to 16 days 
Re-order quantity = 3000 tyres 
Based on the above data calculate the maximum level of stock possible: 

a. 2800
b. 3000
c. 4900
d. 5800

344. The total labor cost incurred by a manufacturing entity includes which one of the following 
elements: 

a. Direct labor cost
b. Indirect labor cost
c. Abnormal labor cost
d. All of the given options
345. If, Opening stock 1,000 units; Material Purchase 7,000 units; Closing Stock 500 units; Material 
consumed ` 7,500.
What will be the inventory turnover ratio?

a. 10 Times
b. 12 times
c. 14.5 times
d. 9.5 times PAPER 2:

346. If Units sold = 10,000; Closing finished goods = 2,000; Opening finished goods = 1,500; 
What will be the value of units manufactured? 

a. 9,500
b. 10,500
c. 13,500
d. 6,500

347. Calculate the amount of direct labor if: 
Direct material = 15,000; Direct labor = 70% of prime cost 

a. 6,429
b. 30,000
c. 10,500
d. 35,000

348. In increasing production volume situation, the behavior of Fixed cost & Variable cost will be:

a. Increases, constant
b. Constant, increases
c. Increases, decreases
d. Decreases, increases

349. While calculating the finished goods ending inventory, what would be the formula to calculate per unit cost? 

a. Cost of goods sold / number of units sold
b. Cost of goods to be manufactured/ number of units manufactured
c. Cost of goods manufactured / number of units manufactured
d. Total manufacturing cost / number of units manufactured

350. If the direct labor is Rs. 42,000 and FOH is 40% of conversion cost. What will be the amount of FOH?

a. 63,000
b. 30,000
c. 28,000
d. 16,800

351. Which one of the following centers is responsible to earn sales revenue? 

a. Cost center
b. Investment center
c. Revenue center
d. Profit center

352. While preparing the Cost of Goods Sold and Income Statement, the over applied FOH is; 

a. Add back, subtracted
b. Subtracted, add back
c. Add back, add back
d. Subtracted, subtracted

353. Which of the following ratios expressed that how many times the inventory is turning over towards the cost of goods sold? 

a. Net profit ratio
b. Gross profit ratio
c. Inventory turnover ratio
d. Inventory holding period

MCQ # 354, 355, 356 and 357 are based on the following data: 
The following is the Income Statement of a Company for last month: 
Particulars `
Sales 4,000,000 
Less: variable expenses 1,800,000 
Contribution margin 2,200,000 
Less: fixed expenses 720,000 
Net income 1480,000
The company has no beginning or ending inventories. A total of 80,000 units were produced and 
sold last month. 

354. What is the company's contribution margin ratio? 

a. 30%
b. 50%
c. 150%
d. None of given options

355. What is the company's break-even in units? 

a. 48,000 units
b. 72,000 units
c. 80,000 units
d. None of the given options

356. How many units would the company have to sell to attain target profits of ` 600,000? 

a. 48,000 units
b. 88,000 units
c. 106,668 units
d. None of given options

357. What is the company's margin of safety in `? 

a. ` 1,600,000
b. ` 2,400,000
c. ` 25,60,000
d. None of the given options

358. The margin of safety can be defined as: 

a. The excess of budgeted or actual sales over budgeted or actual variable expenses
b. The excess of budgeted or actual sales over budgeted or actual fixed expenses
c. The excess of budgeted sales over the break-even volume of sales
d. The excess of budgeted net income over actual net income

359. The contribution margin ratio is calculated by using which one of the given formula? 

a. (Sales - Fixed Expenses)/Sales
b. (Sales - Variable Expenses)/Sales
c. (Sales - Total Expenses)/Sales
d. None of the given options

360. Data of a company XYZ is given below 
Particulars `
Sales 15,00,000 
Variable cost 9,00,000 
Fixed Cost 4,00,000 
Break Even Sales in `__________ 

a. ` 1, 00,000
b. `. 2, 00,000
c. `13, 00,000
d. None of the given options

361. The break-even point is the point where: 

a. Total sales revenue equals total expenses (variable and fixed)
b. Total contribution margin equals total fixed expenses
c. Total sales revenue equals to variable expenses only
d. Both a & b

362. The break-even point in units is calculated using_______ 

a. Fixed expenses and the contribution margin ratio
b. Variable expenses and the contribution margin ratio
c. Fixed expenses and the unit contribution margin
d. Variable expenses and the unit contribution margin

363. Marginal costing is also known as: 

a. Indirect costing
b. Direct costing
c. Variable costing
d. Both (b) and (c)

364. The difference between total revenues and total variable costs is known as: 

a. Contribution margin
b. Gross margin
c. Operating income
d. Fixed costs

365. Percentage of Margin of Safety can be calculated in which one of the following ways? 

a. Based on budgeted Sales
b. Using budget profit
c. Using profit & Contribution ratio
d. All of the given options

366. Which of the following represents a CVP equation?

a. Sales = Contribution margin (Rs.) + Fixed expenses + Profits
b. Sales = Contribution margin ratio + Fixed expenses + Profits
c. Sales = Variable expenses + Fixed expenses + profits
d. Sales = Variable expenses –Fixed expenses + profits

367. If 120 units produced, 100 units were sold @ ` 200 per unit. Variable cost related to production & 
selling is ` 150 per unit and fixed cost is ` 5,000. If the management wants to decrease sales price 
by 10%, what will be the effect of decreasing unit sales price on profitability of company? 

a. Remains constant
b. Profits will increased
c. Company will have to face losses
d. None of the given options

368. A disadvantage of an hourly wage plan is that it: 

a. Provides no incentive for employees to achieve and maintain a high level of production.
b. Is hardly ever used and is difficult to apply.
c. Establishes a definite rate per hour for each employee.
d. Encourages employees to sacrifice quality in order to maximize earnings.

369. The cost expended in the past that cannot be retrieved on product or service 

a. Relevant Cost
b. Sunk Cost
c. Product Cost
d. Irrelevant Cost

370. When a manufacturing process requires mostly human labor and there are widely varying wage 
rates among workers, what is probably the most appropriate basis of applying factory costs to work 
in process? 

a.Machine hours
b. Cost of materials used
c. Direct labor hours
d. Direct labor dollars

371. The main purpose of cost accounting is to: 

a. Maximize profits.
b. Help in inventory valuation
c. Provide information to management for decision making
d. Aid in the fixation of selling price

372. The combination of direct material and direct labor is 

a. Total production Cost
b. Prime Cost
c. Conversion Cost
d. Total manufacturing Cost

373. ______________ method assumes that the goods received most recently in the stores or produced 
recently are the first ones to be delivered to the requisitioning department.

a. FIFO
b. Weighted average method
c. Most recent price method
d. LIFO

374. Fixed cost per unit decreases when: 

a. Production volume increases.
b. Production volume decreases.
c. Variable cost per unit decreases.
d. Variable cost per unit increases.

375. Prime cost + Factory overhead cost is: 

a. Conversion cost.
b. Production cost.
c. Total cost.
d. None of given option.

376. Find the value of purchases if Raw material consumed ` 90,000; Opening and closing stock of raw material is ` 50,000 and 30,000 respectively.


a. ` 10,000
b. ` 20,000
c. ` 70,000
d. ` 1,60,000

377. If Cost of goods sold = ` 40,000; GP Margin = 20% of sales 
Calculate the Gross profit margin. 

a. ` 32,000
b. ` 48,000
c. ` 8,000
d. `10,000

378. Annual requirement is 7800 units; consumption per week is 150 units. Unit price ` 5, order cost ` 10 
per order. Carrying cost ` 1 per unit and lead time is 3 week, The Economic order quantity would 
be: 

a. 395 units
b. 300 units
c. 250 units
d. 150 units

382. The distinction between direct and indirect labour helps to :

a. Measure efficiency of performance
b. Determine product cost more accurately
c. Ensure better cost analysis for decisions and control
d. All of the above

383. Which would be an implicit cost for a firm? The cost:

a. Of worker wages and salaries for the firm.
b. Paid for leasing a building for the firm.
c. Paid for production supplies for the firm.
d. Of wages foregone by the owner of the firm.

384. The difference between gate time and time booked for jobs in respect of a worker in due to the 
following reasons except :

a. Change-over time
b. Illness
c. Waiting for materials, instructions, etc.
d. Breakdown of machine

385. The period of time for which a work station is available for production but is not utilized due to 
shortage of tooling, materials, operators, etc. is known as :

a. Down time
b. Operation time
c. Idle time
d. Set-up time

386. The objective of work study are :

a. Material conservation
b. Time saving
c. Quality improvement and cost reduction
d. All of the above

387. Time study serves the following purposes except :

a. Standardizing jobs, operation etc.
b. Assessing labour time
c. Fixation of factory overhead rate
d. Fixation of wage rates and introduction of incentive schemes

388. The methods of job evaluation include :

a. Grading
b. Ranking
c. Points value
d. All of the above

389. Merit rating helps the following except :

a. Determining right worker for the right job/work
b. Delinking rewards with merits
c. Simplifying wage structure
d. Improving labour relations and reducing labour turnover

390. The factors to be taken into consideration in formulating incentive schemes include :

a. Quantity and quality of output
b. Incidence of overhead, and effect upon workers
c. Simplicity and legal provisions
d. All of the above

391. Contribution margin contributes to meet which one of the following options ?

a. Variable cost
b. Fixed cost
c. Operating cost
d. Net profit

392. Favourable conditions for the operation of piece rates include :

a. Homogeneous products
b. Long, uninterrupted run of production
c. Inspection
d. High proportion of indirect labour

393. If time allowed for a job is 10 hours, time taken for the job is 8 hours and rate of pay is ` 2 per hour, he bonus to the worker is :


a. ` 1.20
b. ` 2.00
c. ` 3.20
d. None of the above

394. Group bonus schemes are generally suitable where :

a. Output depends on individual efforts
b. Output of individual workers can be measured easily
c. It is necessary to create a collective interest in the work
d. Normal loss rate is high

395. In a profit sharing scheme the available surplus is shared by the following except :

a. Government
b. Shareholders
c. Employees
d. Firm

396. Non-monetary incentives may include the following except :

a. Health and safety
b. Housing facilities
c. Education and training
d. Dearness allowance

397. The purposes served by preparation of payroll or wages sheet include :

a. Spreading the volume of work to be done
b. Computation of labour rate for each department
c. Comparing actual wages with budgeted wages for control
d. All of the above

398. The authorized heads of deduction from wages payable include the following except :

a. Car allowance
b. Income tax
c. Provident fund
d. Employees‘ state insurance

399. Wages analysis include :

a. Gross wages per product
b. Gross wages per operation or department
c. Gross wages per labour classification
d. Analysis of constituent of gross wages – direct/ lost time

400. In account ting for labour cost :

a. A. direct labour cost and indirect labour cost are charged to prime cost
b. Direct labour cost and indirect labour cost are charged to overheads
c. Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads
d. All of the above

Answers:


1 d 302 c 303 b 304 c 305 a 306 b 307 b 308 d
309 b 310 d 311 d 312 a 313 b 314 d 315 a

316 d 317 b 318 b 319 d 320 d 321 b 322 b

323 c 324 b 325 a 326 c 327 b 328 b 329 a

330 c 331 d 332 d 333 a 334 b 335 a 336 a

337 c 338 c 339 a 340 d 341 b 342 a 343 c

344 d 345 a 346 b 347 d 348 b 349 c 350 c

351 c 352 b 353 c 354 b 355 d 356 a 357 c

358 c 359 b 360 d 361 d 362 c 363 d 364 a

365 d 366 c 367 c 368 a 369 b 370 c 371 c

372 b 373 d 374 a 375 b 376 c 377 d 378 b

379 a 380 c 381 a 382 d 383 d 384 b 385 b

386 d 387 c 388 d 389 b 390 d 391 b 392 b

393 c 394 c 395 a 396 d 397 d 398 a 399 a

400 c


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