1.
Factory overhead can be charged on the basis of _______.
A. material cost
B. labour cost
C. prime cost
D. direct expenses
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2.
Office and administrative expenses can be charged on the
basis of _______.
A. material cost
B. labour cost
C. prime cost
D. factory cost
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3.
Job costing used in ________.
A. paper mills
B. chemical works
C. printing works
D. textile mill
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4.
A document which provides for the detailed cost centre
and cost unit is _______.
A. tender
B. cost sheet
C. invoice
D. profit statement
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5.
Direct material is a _______.
A. fixed cost
B. variable cost
C. semi variable cost
D. semi fixed cost
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6.
The most important element of cost in manufacturing
industries is _________.
A. material
B. labour
C. direct costs
D. indirect costs
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7.
According to which method of pricing issues is close to
current economic values?
A. Last In First Out
B. First In First Out
C. Highest In First Out
D. weighted average price
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8.
Continuous stock taking is a part of ________.
A. annual stock taking
B. perpetual inventory
C. ABC analysis
D. VED analysis
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9.
Which of the following methods of stock control aims at
concentrating efforts on selected items of material?
A. Perpetual inventory system
B. Material turnover ratio
C. Level setting
D. ABC analysis
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10.
Material control involves ________.
A. consumption of material
B. issue of material
C. purchase of material
D. purchase, storage and issue of material
1.
Material requisition is meant for ________.
A. purchase of material
B. supply of material from stores
C. sale of material
D. storage of material
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12.
ABC analysis is ________.
A. At best Control
B. Always better Control
C. Average better Control
D. All best control
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13.
___________ is the value of economic resources used as a
result of producing or doing the thing costed.
A. Cost
B. Inventory
C. Labour
D. overhead
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14.
Perpetual inventory system involves __________
A. bincard and stores ledger
B. bill of material and material requisition
C. purchase requisition and purchase order
D. inward and outward invoices
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15.
FIFO is ________.
A. Fast Investment in Future Order
B. First In First Out
C. Fast In Fast Out
D. Fast Issue Of Fast Order
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16.
LIFO method of pricing of materials is more suitable when
_________.
A. material prices are rising
B. material prices are falling
C. material prices are constant
D. material prices are fluctuating
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17.
Average method of pricing the material issues is useful
when ___________.
A. material prices are rising
B. material prices are falling
C. material prices are constant
D. material prices are fluctuating
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18.
Scrap is ________.
A. residue of material
B. wastage of material
C. surplus material
D. abnormal loss of material
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19.
Material is issued by store keeper against ________.
A. material requisition
B. material order
C. goods received note
D. purchase requisition
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20.
EOQ stands for ________.
A. Economic Order Quantity
B. Essential Order Quantity
C. Economic Output Quantity
D. Essential Output Quantity
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21.
GRN number refers to________.
A. goods received note number
B. goods returned note number
C. goods shortage note number
D. goods requisition note number
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22.
Bin card is maintained by ________.
A. costing department
B. stores department
C. finance department
D. accounting department
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23.
Labour turnover is ______.
A. productivity of labour
B. efficiency of the labour
C. change in labour force
D. total cost of the labour
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24.
Idle time is ________.
A. time spent by workers in factory
B. time spent by workers in office
C. time spent by workers off their work
D. time spent by workers on their job
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25.
In__________ the workers are paid on the basis of hourly
daily,weekly rate
A. time rate system
B. piece rate system
C. premium bonus system
D. emerson efficiency plan
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26.
Difference between attendance time and job time is
_______.
A. job time
B. over time
C. actual time
D. idle time
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27.
Piece workers are paid on the basis of ________.
A. output sold
B. output produced
C. output in stock
D. input received
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28.
Time wages are paid on the basis of ________.
A. actual time
B. standard time
C. time saved
D. overtime
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29.
Differential piece wages means _______.
A. different wages for different level of performance
B. different wages for different time consumed
C. different wages for different level of output
D. different wages for different types of industries
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30.
Those cost which is incurred to prevent the labour
turnover __________.
A. management cost
B. replacement cost
C. preventive cost
D. compensation cost
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31.
Normal idle time __________.
A. can be avoided
B. can be minimized
C. cannot be avoided
D. can be controlled
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32.
Cost of idle time arising due to non availability of raw
material is _______.
A. charged to costing profit and loss account
B. charged to financial profit and loss account
C. charged to factory overhead
D. recovered by inflating the wage rate
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33.
Wage sheet is prepared by ________.
A. time keeping department
B. personnel department
C. payroll department
D. cost accounting department
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34.
Time and motion study is conducted by ________.
A. time keeping department
B. personnel department
C. payroll department
D. engineering department
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35.
Under Gantts task and bonus plan no bonus is payable to
a worker if his efficiency is less than ________.
A. 50%
B. 60%
C. 835%
D. 100%
Answer &
36.
When standard output is 10 units per hour and actual
output is 12 units per hour, the efficiency is ________.
A. 75%
B. 80%
C. 90%
D. 120%
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37.
Bonus under Halsey plan is paid ________.
A. at 50% of time saved
B. at 75% of time saved
C. at 80% of time saved
D. at 90% of time saved
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38.
Halsey premium plan is ________.
A. individual incentive scheme
B. group incentive scheme
C. time and piece wage system
D. differential piece wage system
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39.
Labour cost is the second element of ________.
A. cost
B. profit
C. sales
D. task
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40.
Number of methods available for calculation of Labour
turnover is ________.
A. two
B. three
C. four
D. five
Answer & Sol
41.
Merricks multiple piece rate system has _______.
A. two rates
B. three rates
C. four rates
D. five rates
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42.
Overhead is also known as ________.
A. ongoing cost
B. basic cost
C. extra cost
D. chargeable expenses
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43.
Reorder level = ________.
A. maximum level - minimum level
B. maximum consumption X maximum reorder period
C. minimum consumption x minimum reorder period
D. normal consumption X normal reorder period
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44.
Overhead can be classified according to function-wise as
________.
A. fixed o/h, variable o/h and semi-variable o/h
B. controllable o/h and uncontrollable o/h
C. manufacturing o/h, administration o/h and selling & distribution o/h
D. past cost and future cost
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45.
Allotment of overhead incurred for a particular cost centre
to that specific cost centre is ________.
A. allocation
B. allotment
C. primary distribution
D. secondary distribution
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46.
The process of setting standards and comparing actual
performance with standards with a view to control the cost
is ________.
A. cost reduction
B. cost control
C. cost allocation
D. cost ascertainment
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47.
Under ABC method of material control, the material are
classified according to __________.
A. its value
B. its usage
C. its nature
D. its availability
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48.
This is a point at which the store keeper should initiate
purchase requisition for fresh supply It is ________.
A. maximum stock level
B. minimum stock level
C. reorder level
D. average stock level
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49.
This is a level at which normal issue of material are
stopped, but issued under special condition It is ________.
A. maximum stock level
B. minimum stock level
C. danger level
D. average stock level
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50.
Annual usage is 6000 units @ Rs 20 per unit Cost of
placing an order is Rs 60 and annual carrying cost of one
unit is 10% of inventory value EOQ = __________.
A. 600 units
B. 750 units
C. 1200 units
D. 1250 units
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51.
The method in which issue prices of material is computed
by dividing total purchase cost of material in stock with
total quantity in stock ________.
A. Simple average method
B. weighted average method
C. periodical average method
D. periodic simple average method
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52.
Under which method the rate of wages are linked with the
cost of living index?
A. Flat time rate
B. High day rate
C. Measured day rate
D. Graduated time rate
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53.
Under which plan efficiency is shared by employee and
employer equally?
A. Time rate
B. Gantts task and bonus plan
C. Halsey plan
D. Rowan plan
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54.
Which of the following method of wage payment is most
suitable where the speed of production is beyond the
control of worker?
A. Time rate system
B. Piece rate system
C. Halsey premium system
D. Rowan premium plan
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55.
Under which method of wage payment, wages are
influenced by idle time?
A. Straight piece rate
B. Differential piece rate
C. Premium and bonus plan
D. Time wage rate
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56.
The allotment of whole item of cost to cost centre or cost
units is called _________.
A. cost allocation
B. cost apportionment
C. cost absorption
D. cost disbursement
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57.
Packing cost is ________.
A. production cost
B. selling cost
C. administration cost
D. distribution cost
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58.
Directors remuneration and expenses form part of
________.
A. production overhead
B. administrative overhead
C. selling overhead
D. distribution overhead
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59.
Absorption means ________.
A. charging overheads to cost centres
B. charging of overheads to cost units
C. charging of overheads to cost centres or cost units
D. allotment of overheads to different departments
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60.
Which of the following is a service department?
A. Refining department
B. Machining department
C. Receiving department
D. Finishing department
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61.
Bad debt is an example of ________.
A. production overhead
B. administrative overhead
C. selling overhead
D. distribution overhead
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62.
Variable cost per unit ________.
A. varies when output varies
B. remains constant
C. increase when output increases
D. decreases when output decreases
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63.
Increase in total variable cost is due to ________.
A. increase in fixed cost
B. increase in sales
C. increase in production
D. increase in efficiency
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64.
An example of fixed cost ________.
A. property tax
B. rent for building
C. direct material cost
D. direct wages
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65.
The process of allocating and apportioning the costs on
suitable basis to all the departments is _______.
A. departmentalization
B. primary distribution
C. secondary distribution
D. classification
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66.
The process of redistribution of service department costs
to production departments is ________.
A. departmentalization
B. primary distribution
C. secondary distribution
D. classification
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67.
Depreciation of plant can be apportioned on the basis of
________.
A. plant value
B. plant size
C. working days
D. output produced
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68.
Indirect materials can be apportioned on the basis of
________.
A. direct material
B. prime cost
C. direct labour hour
D. machine hour
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69.
A cost unit is ________.
A. the cost per machine hour
B. the cost per labour hour
C. a unit of production or service in relation to which costs are ascertained
D. a measure of work output in a standard hour
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70.
Factory overhead is also called as ________.
A. sundry overhead
B. extra overhead
C. works overhead
D. total overhead
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