Quiz Start Time: 03:59 PM 66
sec(s)
Question # 9 of 15 ( Start time: 04:06:20 PM ) Total Marks: 1
Where the applied FOH cost is less than the actual FOH cost it is:
Select correct option:
Unfavorable variance
Favorable variance
Normal variance
Budgeted variance
Quiz Start Time: 03:59 PM 64
sec(s)
Question # 10 of 15 ( Start time: 04:06:55 PM ) Total Marks: 1
Generally, the danger level of stock is fixed ________ the minimum
level.
Select correct option:
Below
Above
Equal
Danger level has no relation to minimum level
Quiz Start Time: 03:59 PM 69
sec(s)
Question # 11 of 15 ( Start time: 04:07:53 PM ) Total Marks: 1
Cost of Goods Manufactured can be calculated as follow
Select correct option:
Total factory Cost Add Opening Work in process inventory Less
Closing Work in process inventory
Total factory Cost Less Opening Work in process inventory Add
Closing Work in process inventory
Total factory Cost Less Opening Work in process inventory Less
Closing Work in process inventory
Total factory Cost Add Opening Work in process inventory Add Closing
Work in process inventory
Quiz Start Time: 03:59 PM 81
sec(s)
Question # 12 of 15 ( Start time: 04:09:16 PM ) Total Marks: 1
Under LIFO method the value of issues is close to:
Select correct option:
Second hand price
Current market price
Historical cost
All of given options
Quiz Start Time: 03:59 PM 71
sec(s)
Question # 13 of 15 ( Start time: 04:10:37 PM ) Total Marks: 1
What will be the impact of normal loss on the overall per unit cost?
Select correct option:
Per unit cost will increase
Per unit cost will decrease
Per unit cost remain unchanged
Normal loss has no relation to unit cost
Quiz Start Time: 03:59 PM
Question # 14 of 15 ( Start time: 04:11:12 PM ) Total Marks: 1
Which of the following is/are not associated with ordering costs?
Select correct option:
Interest
Insurance
Opportunity costs
All of the given options
Quiz Start Time: 03:59 PM 68
sec(s)
Question # 15 of 15 ( Start time: 04:11:46 PM ) Total Marks: 1
PVC company has ordering quantity 10,000 units.They have storage
capacity 20,000 units,The average inventory would be:
Select correct option:
20,000
5,000
10,000
25,000
Q.1) _________________ is a Predetermine cost of the units.
A. Standard cost (correct answer)
B. Implicit Cost
C. Product Cost
D. None
Explanation
The budgeted or planned cost of material, labour, or overheads
expected to be paid during a given accounting period.
standard cost- The normal or specified cost used as the basis for
measurement against an actual. Standard costs for manufactured items
include labor, material and overhead, and vendor acquisition, freight,
duty fees and other categories for purchased items
Un-Answered 34% answered this correctly. 66% answered wrong
Q.2) Cost Accounting deals with decisions relating to the generation &
effective utilization of the financial resources of an entity.
A. TRUE
B. FALSE (correct answer)
Explanation
Its done by Management Accounting
Un-Answered 85% answered this correctly. 15% answered wrong
Q.3) Indirect cost is also known as overhead cost.
A. True (correct answer)
B. False
Explanation
Indirect Cost/Overhead Cost
An indirect cost or overhead cost is a cost that is incurred in the
course of producing product or
rendering service, but which cannot be traced in the product or
service in full.
Expenditure incurred on labor, material or other services which cannot
be economically identified
with a specific cost product or service (cost unit).
Examples include:
Wages of supervisor, cleaning material, workshop insurance
Un-Answered 53% answered this correctly. 47% answered wrong
Q.4) Financial Accounting is a branch of management accounting.
A. TRUE (correct answer)
B. FALSE
Un-Answered 40% answered this correctly. 60% answered wrong
Q.5) Management Accounting deals with Ascertainment, Measurement,
Accumulation, Budgeting & Evaluating cost structure of the entity.
A. True
B. FALSE (correct answer)
Explanation
Its done by Cost Accounting
Un-Answered 63% answered this correctly. 37% answered wrong
Q.6) Direct Material + Direct Labor + other direct cost =
A. Prime Cost (correct answer)
B. Factory OverHead (FOH)
C. Conversion Cost
D. None
Un-Answered 67% answered this correctly. 33% answered wrong
Q.7) Cost is classified in _____________ categories.
A. 1
B. 2 (correct answer)
C. 3
D. 4
Un-Answered 75% answered this correctly. 25% answered wrong
Q.8) An investor invests in stock exchange he foregoes the opportunity
to invest further in his hotel. The profit which the investor will be
getting from the hotel is _________________.
A. opportunity cost (correct answer)
B. Period Cost
C. Product Cost
D. Historical Cost
Explanation
1. The cost of an alternative that must be forgone in order to pursue
a certain action. Put another way, the benefits you could have
received by taking an alternative action.
2. The difference in return between a chosen investment and one that
is necessarily passed up. Say you invest in a stock and it returns a
paltry 2% over the year. In placing your money in the stock, you gave
up the opportunity of another investment - say, a risk-free government
bond yielding 6%. In this situation, your opportunity costs are 4% (6%
- 2%)
Un-Answered 42% answered this correctly. 58% answered wrong
Q.9) Direct Labour + Other Direct Cost + FOH =
A. Prime Cost
B. Factory OverHead (FOH)
C. Conversion Cost (correct answer)
D. None
Un-Answered 34% answered this correctly. 66% answered wrong
Q.10) accounting is always a language of business
A. TRUE
B. FALSE (correct answer)
Un-Answered 61% answered this correctly. 39% answered wrong
Q.11) If Direct Material = 12,000
Direct Labor = 8000
other Direct Cost = 2000 then what will be the Prime Cost?
A. 12000
B. 14000
C. 20000
D. 22000 (correct answer)
Un-Answered 65% answered this correctly. 35% answered wrong
Q.12) _________________ is the cost that is subject to actual payment
or will be paid for in future.
A. Implicit Cost
B. Explicit Cost (correct answer)
Explanation
A business expense that is easily identified and accounted for.
Explicit costs represent clear, obvious cash outflows from a business
that reduce its bottom-line profitability. This contrasts with less-
tangible expenses such as goodwill amortization, which are not as
clear cut regarding their effects on a business's bottom-line value
Good examples of explicit costs would be items such as wage expense,
rent or lease costs, and the cost of materials that go into the
production of goods. With these expenses, it is easy to see the source
of the cash outflow and the business activities to which the expense
is attributed
Un-Answered 44% answered this correctly. 56% answered wrong
Q.13) Cost Accounting is an art of Recording , Classifying,
summarizing, Reporting, Interpreting of the Financial Information.
A. TRUE
B. FALSE (correct answer)
Un-Answered 20% answered this correctly. 80% answered wrong
Q.14) Accounting is a language of ________________.
A. Accountants
B. Mathematics
C. Mathematics (correct answer)
D. NONE
Un-Answered 73% answered this correctly. 27% answered wrong
Q.15) A firm Uses its own capital or Uses its owner's time and/or
financial resources both are examples of ____________
A. Implicit Cost (correct answer)
B. Explicit Cost
Explanation
A cost that is represented by lost opportunity in the use of a
company's own resources, excluding cash
These are intangible costs that are not easily accounted for. For
example, the time and effort that an owner puts into the maintenance
of the company rather than working on expansion
Un-Answered 81% answered this correctly. 19% answered wrong
Q.16) Cost is expenditure incurred.
A. TRUE (correct answer)
B. FALSE
Un-Answered 59% answered this correctly. 41% answered wrong
Q.17) Accounting has ____________ branches
A. 1
B. 2
C. 3 (correct answer)
D. 4
Un-Answered 89% answered this correctly. 11% answered wrong
Q.18) Cost that can be traced in full to the product or services is
called
A. Direct Cost (correct answer)
B. Indirect Cost
Un-Answered 55% answered this correctly. 45% answered wrong
Q.19) ____________ is verifiable through invoices/agreements.
A. Opportunity Cost
B. Product Cost
C. Period Cost
D. Historical Cost (correct answer)
Un-Answered 53% answered this correctly. 47% answered wrong
Q.20) Wage, Rent & Materials are examples of ____________.
A. Implicit Cost
B. Explicit Cost (correct answer)
Explanation
A business expense that is easily identified and accounted for.
Explicit costs represent clear, obvious cash outflows from a business
that reduce its bottom-line profitability. This contrasts with less-
tangible expenses such as goodwill amortization, which are not as
clear cut regarding their effects on a business's bottom-line value
Good examples of explicit costs would be items such as wage expense,
rent or lease costs, and the cost of materials that go into the
production of goods. With these expenses, it is easy to see the source
of the cash outflow and the business activities to which the expense
is attributed
sec(s)
Question # 9 of 15 ( Start time: 04:06:20 PM ) Total Marks: 1
Where the applied FOH cost is less than the actual FOH cost it is:
Select correct option:
Unfavorable variance
Favorable variance
Normal variance
Budgeted variance
Quiz Start Time: 03:59 PM 64
sec(s)
Question # 10 of 15 ( Start time: 04:06:55 PM ) Total Marks: 1
Generally, the danger level of stock is fixed ________ the minimum
level.
Select correct option:
Below
Above
Equal
Danger level has no relation to minimum level
Quiz Start Time: 03:59 PM 69
sec(s)
Question # 11 of 15 ( Start time: 04:07:53 PM ) Total Marks: 1
Cost of Goods Manufactured can be calculated as follow
Select correct option:
Total factory Cost Add Opening Work in process inventory Less
Closing Work in process inventory
Total factory Cost Less Opening Work in process inventory Add
Closing Work in process inventory
Total factory Cost Less Opening Work in process inventory Less
Closing Work in process inventory
Total factory Cost Add Opening Work in process inventory Add Closing
Work in process inventory
Quiz Start Time: 03:59 PM 81
sec(s)
Question # 12 of 15 ( Start time: 04:09:16 PM ) Total Marks: 1
Under LIFO method the value of issues is close to:
Select correct option:
Second hand price
Current market price
Historical cost
All of given options
Quiz Start Time: 03:59 PM 71
sec(s)
Question # 13 of 15 ( Start time: 04:10:37 PM ) Total Marks: 1
What will be the impact of normal loss on the overall per unit cost?
Select correct option:
Per unit cost will increase
Per unit cost will decrease
Per unit cost remain unchanged
Normal loss has no relation to unit cost
Quiz Start Time: 03:59 PM
Question # 14 of 15 ( Start time: 04:11:12 PM ) Total Marks: 1
Which of the following is/are not associated with ordering costs?
Select correct option:
Interest
Insurance
Opportunity costs
All of the given options
Quiz Start Time: 03:59 PM 68
sec(s)
Question # 15 of 15 ( Start time: 04:11:46 PM ) Total Marks: 1
PVC company has ordering quantity 10,000 units.They have storage
capacity 20,000 units,The average inventory would be:
Select correct option:
20,000
5,000
10,000
25,000
Q.1) _________________ is a Predetermine cost of the units.
A. Standard cost (correct answer)
B. Implicit Cost
C. Product Cost
D. None
Explanation
The budgeted or planned cost of material, labour, or overheads
expected to be paid during a given accounting period.
standard cost- The normal or specified cost used as the basis for
measurement against an actual. Standard costs for manufactured items
include labor, material and overhead, and vendor acquisition, freight,
duty fees and other categories for purchased items
Un-Answered 34% answered this correctly. 66% answered wrong
Q.2) Cost Accounting deals with decisions relating to the generation &
effective utilization of the financial resources of an entity.
A. TRUE
B. FALSE (correct answer)
Explanation
Its done by Management Accounting
Un-Answered 85% answered this correctly. 15% answered wrong
Q.3) Indirect cost is also known as overhead cost.
A. True (correct answer)
B. False
Explanation
Indirect Cost/Overhead Cost
An indirect cost or overhead cost is a cost that is incurred in the
course of producing product or
rendering service, but which cannot be traced in the product or
service in full.
Expenditure incurred on labor, material or other services which cannot
be economically identified
with a specific cost product or service (cost unit).
Examples include:
Wages of supervisor, cleaning material, workshop insurance
Un-Answered 53% answered this correctly. 47% answered wrong
Q.4) Financial Accounting is a branch of management accounting.
A. TRUE (correct answer)
B. FALSE
Un-Answered 40% answered this correctly. 60% answered wrong
Q.5) Management Accounting deals with Ascertainment, Measurement,
Accumulation, Budgeting & Evaluating cost structure of the entity.
A. True
B. FALSE (correct answer)
Explanation
Its done by Cost Accounting
Un-Answered 63% answered this correctly. 37% answered wrong
Q.6) Direct Material + Direct Labor + other direct cost =
A. Prime Cost (correct answer)
B. Factory OverHead (FOH)
C. Conversion Cost
D. None
Un-Answered 67% answered this correctly. 33% answered wrong
Q.7) Cost is classified in _____________ categories.
A. 1
B. 2 (correct answer)
C. 3
D. 4
Un-Answered 75% answered this correctly. 25% answered wrong
Q.8) An investor invests in stock exchange he foregoes the opportunity
to invest further in his hotel. The profit which the investor will be
getting from the hotel is _________________.
A. opportunity cost (correct answer)
B. Period Cost
C. Product Cost
D. Historical Cost
Explanation
1. The cost of an alternative that must be forgone in order to pursue
a certain action. Put another way, the benefits you could have
received by taking an alternative action.
2. The difference in return between a chosen investment and one that
is necessarily passed up. Say you invest in a stock and it returns a
paltry 2% over the year. In placing your money in the stock, you gave
up the opportunity of another investment - say, a risk-free government
bond yielding 6%. In this situation, your opportunity costs are 4% (6%
- 2%)
Un-Answered 42% answered this correctly. 58% answered wrong
Q.9) Direct Labour + Other Direct Cost + FOH =
A. Prime Cost
B. Factory OverHead (FOH)
C. Conversion Cost (correct answer)
D. None
Un-Answered 34% answered this correctly. 66% answered wrong
Q.10) accounting is always a language of business
A. TRUE
B. FALSE (correct answer)
Un-Answered 61% answered this correctly. 39% answered wrong
Q.11) If Direct Material = 12,000
Direct Labor = 8000
other Direct Cost = 2000 then what will be the Prime Cost?
A. 12000
B. 14000
C. 20000
D. 22000 (correct answer)
Un-Answered 65% answered this correctly. 35% answered wrong
Q.12) _________________ is the cost that is subject to actual payment
or will be paid for in future.
A. Implicit Cost
B. Explicit Cost (correct answer)
Explanation
A business expense that is easily identified and accounted for.
Explicit costs represent clear, obvious cash outflows from a business
that reduce its bottom-line profitability. This contrasts with less-
tangible expenses such as goodwill amortization, which are not as
clear cut regarding their effects on a business's bottom-line value
Good examples of explicit costs would be items such as wage expense,
rent or lease costs, and the cost of materials that go into the
production of goods. With these expenses, it is easy to see the source
of the cash outflow and the business activities to which the expense
is attributed
Un-Answered 44% answered this correctly. 56% answered wrong
Q.13) Cost Accounting is an art of Recording , Classifying,
summarizing, Reporting, Interpreting of the Financial Information.
A. TRUE
B. FALSE (correct answer)
Un-Answered 20% answered this correctly. 80% answered wrong
Q.14) Accounting is a language of ________________.
A. Accountants
B. Mathematics
C. Mathematics (correct answer)
D. NONE
Un-Answered 73% answered this correctly. 27% answered wrong
Q.15) A firm Uses its own capital or Uses its owner's time and/or
financial resources both are examples of ____________
A. Implicit Cost (correct answer)
B. Explicit Cost
Explanation
A cost that is represented by lost opportunity in the use of a
company's own resources, excluding cash
These are intangible costs that are not easily accounted for. For
example, the time and effort that an owner puts into the maintenance
of the company rather than working on expansion
Un-Answered 81% answered this correctly. 19% answered wrong
Q.16) Cost is expenditure incurred.
A. TRUE (correct answer)
B. FALSE
Un-Answered 59% answered this correctly. 41% answered wrong
Q.17) Accounting has ____________ branches
A. 1
B. 2
C. 3 (correct answer)
D. 4
Un-Answered 89% answered this correctly. 11% answered wrong
Q.18) Cost that can be traced in full to the product or services is
called
A. Direct Cost (correct answer)
B. Indirect Cost
Un-Answered 55% answered this correctly. 45% answered wrong
Q.19) ____________ is verifiable through invoices/agreements.
A. Opportunity Cost
B. Product Cost
C. Period Cost
D. Historical Cost (correct answer)
Un-Answered 53% answered this correctly. 47% answered wrong
Q.20) Wage, Rent & Materials are examples of ____________.
A. Implicit Cost
B. Explicit Cost (correct answer)
Explanation
A business expense that is easily identified and accounted for.
Explicit costs represent clear, obvious cash outflows from a business
that reduce its bottom-line profitability. This contrasts with less-
tangible expenses such as goodwill amortization, which are not as
clear cut regarding their effects on a business's bottom-line value
Good examples of explicit costs would be items such as wage expense,
rent or lease costs, and the cost of materials that go into the
production of goods. With these expenses, it is easy to see the source
of the cash outflow and the business activities to which the expense
is attributed
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