The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
A. Direct cost B. Variable cost C. Commercial cost D. Conversion cost
Accounting MCQs with Answers
Which of the following bases is not appropriate for apportionment of Transport department‘s cost ?
A. Crane hours B. Crane value C. Truck Mileage D. Truck value
The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
A. Uncontrollable cost B. Sunk cost C. Avoidable cost D. Opportunity cost
Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
A. 5,80,000 B. 5,50,000 C. 5,00,000 D. 5,75,000 Explanation: Using production related budgets, units to produce equals budgeted sales + desired ending finished goods inventory + desired equivalent units in ending W-I-P inventory – beginning finished goods inventory – equivalent units in beginning W-I-P inventory. Therefore, in this case, units to produce is equal to … Read more
If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.
A. 0.65 B. 0.35 C. 1.50 D. 5.29
A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be
A. 37.50 B. 38.25 C. 24.00 D. 35.00
Consider the following data pertaining to the production of a company for a particular month :
Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is A. 65,025 B. 94,287 C. 95,020 … Read more
If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.
A. 8,000 units B. 11,000 units C. 10,000 units D. 9,000 units