# MBA/MBA Cost and Managerial Accounting Mcq Set 11 Sample Test,Sample questions

## Question: `A disadvantage of an hourly wage plan is that it:`

1.Provides no incentive for employees to achieve and maintain a high level of production.

2.Is hardly ever used and is difficult to apply.

3.Establishes a definite rate per hour for each employee.

4.Encourages employees to sacrifice quality in order to maximize earnings.

1.18,387

2.18,560

3.18,750

4.19,000

## Question: `According to Rowan premium plan, which of the following formula is used to calculate the bonus rate?`

1.(Time saved/time allowed) x 100

2.(Time allowed/time saved) x 100

3.(Actual time taken/time allowed) x 100

4.(Time allowed/actual time taken) x 100

## Question: `All of the following are cases of labor turnover EXCEPT:`

1.Workers appointed against the vacancy caused due to discharge or quitting of the organization

2.Workers employed under the expansion schemes of the company

3.The total change in the composition of labor force

4.Workers retrenched

1.395 units

2.300 units

3.250 units

4.150 units

## Question: `Bin card is maintained by`

1.Purchase department

2.Production department

3.Marketing department

4.Stores keeper

## Question: `Cost of labour turnover may be treated as:`

1.Direct wages

2.Prime cost

4.None of the above

## Question: ```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 _______```

1.1, 00,000

2.2, 00,000

3.13, 00,000

4.None of the given options

## Question: `Direct Labor is an element of:`

1.Prime cost

2.Conversion cost

3.Total production cost

4.All of the given options

## Question: `FOH absorption rate is calculated by the way of:`

1.Estimated FOH Cost/Direct labor hours

2.Estimated FOH Cost/No of units produced

3.Estimated FOH Cost/Prime Cost

4.All of the given options

## Question: `Group bonus schemes are generally suitable where:`

1.Output depends on individual efforts

2.Output of individual workers can be measured easily

3.It is necessary to create a collective interest in the work

4.Normal loss rate is high

## Question: `If labor is satisfied with high wages it may ultimately lead to:`

1.Increased production and productivity

2.Increased efficiency

4.All of the given options

## Question: `In account ting for labourcost:`

1. direct labour cost and indirect labour cost are charged to prime cost

2.Direct labour cost and indirect labour cost are charged to overheads

3.Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads

4.All of the above

## Question: `In cost Accounting, abnormal loss is charged to:`

2.Work in process account

3.Income Statement

4.Entire production

1.Process

2.Job

3.Batch

4.Service

1.5.0 times

2.5.3 times

3.6.0 times

4.6.4 times

## Question: `Merit rating helps the following except:`

1.Determining right worker for the right job/work

3.Simplifying wage structure

4.Improving labour relations and reducing labour turnover

## Question: `The capacity which is based on the long-term average of sales expectancy is known as:`

1.Theoretical capacity

2.Operating capacity

3.Normal capacity

4.Derated capacity

## Question: `The first in, first out method of pricing raw material issues, exhibits which one of the following features?`

1.The issue price is recalculated each time new deliveries are made into stock.

2.The issue price is always at the latest price.

3.The goods are always issued strictly in the physical order in which they are received.

4.The issue price is always at the earliest price.

## Question: `The flux method of labor turnover denotes:`

1.Workers appointed against the vacancy caused due to discharge or quitting of the organization

2.Workers appointed in replacement of existing employees

3.Workers employed under the expansion schemes of the company

4.The total change in the composition of labor force

## Question: `The main difference between the profit center and investment center is:`

1.Decision making

2.Revenue generation

3.Cost incurrence

4.Investment

## Question: `The methods of treating cost of small tools in cost accounts include`

1.Charging to expense

2.Charging to stores

3.Capitalizing in a small tools account

4.All of the above

1.Down time

2.Operation time

3.Idle time

4.Set-up time

## Question: `The process of distribution of overheads allotted to a particular department or cost center over the units produced is called:`

1.Allocation

2.Apportionment

3.Absorption

4.Departmentalization

## Question: `The term Maximum level represents:`

1.The maximum stock level indicates the maximum quantity of an item of material which can be held in stock at any time.

2.The maximum stock level indicates the maximum quantity of an item of material which cannot be held in stock at any time.

3.The average stock level indicates the maximum quantity of an item of material which can be held in stock at any time.

4.The available stock level indicates the maximum quantity of an item of material which can be held in stock at any time.

1.Assets

2.Expense

3.Income

4.Liability

## Question: `Wage, Rent & Materials are examples of:`

1.Implicit Cost

2.Explicit Cost

3.Direct Cost

4.Manufacturing Cost

## Question: `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?`

1.Choose the option which gives the highest unit profit.

2.Choose the option which gives the highest unit contribution.

3.Aim to achieve a balance of activities covering all of the options.

4.Choose the option which gives highest contribution per unit of limiting factor.

## Question: `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?`

1.Machine hours

2.Cost of materials used

3.Direct labor hours

4.Direct labor dollars

## Question: `Which of the following does not influence the useful life of an asset?`

1.Expected physical wear and tear

2.Cost of the asset

3.Obsolescence

4.Legal or other limits on the use of the asset

## Question: `Which of the following is false regarding the LIFO method of inventory valuation?`

1.The material issue will be priced at the price of the material that is purchased last.

2.The pattern of cash flow does not necessarily coincide with the actual flow pattern of materials.

3.It permits management to influence net income by timing the purchases.

4.LIFO determines closing inventory at recent costs.

## Question: `Which of the following is not an example of marketing overheads?`

1.Salary of the foreman

2.Publicity expenses

3.Salaries of sales staff

4.Secondary packing charges

## Question: `Which of the following is not included in functional classification of overheads?`

1.Repairs and maintenance

2.Lubricating oil

3.Consumable stores

4.Chargeable expenses

1.Process

2.Contract

3.Batch

4.Operation

## More MCQS

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