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Question No: 26 ( Marks: 1 ) - Please choose one
The components of the conversion cost are:

► Direct Material + Direct Labor + Other Direct Cost
► Direct Labor + FOH
► Prime Cost + FOH+ Other Direct Cost
► Prime Cost + FOH

Question No: 27 ( Marks: 1 ) - Please choose one
The cost of Telephone bill of the factory is treated as:

► Fixed cost
► Variable cost
► Step cost
► Semi variable cost

Question No: 28 ( Marks: 1 ) - Please choose one
Which of the followin is a cost that chanes in proportion to chanes
in volume?

► Fixed cost
► Sunk cost
► Opportunity cost
► None of the iven
options

Question No: 29 ( Marks: 1 ) - Please choose one
Cost accountin concepts include all of the followin EXCEPT:
► Plannin
► Controllin
► Sharin
► Costin

Question No: 30 ( Marks: 1 ) - Please choose one
If a predetermined FOH rate is not applied and the volume of
production is reduced from the planned capacity level, the cost per
unit expected to:
► Remain unchaned for fixed cost and increased for variable
cost
► Increase for fixed cost and remain unchaned for variable cost
► Increase for fixed cost and decreased for variable cost
► Decrease for both fixed and variable costs

Question No: 31 ( Marks: 1 ) - Please choose one
All of the followin are characteristics of roup Bonus Scheme EXCEPT:
► A standard time is set for the completion of a job
► If the time taken is reater than the time allowed, the
workers in the roup receive time waes
► If the time taken is less than the time allowed, the roup
receives a bonus on time saved
► If the time taken is reater than the time allowed, the
workers in the roup receive time deductions for extra hours

Question No: 32 ( Marks: 1 ) - Please choose one
Which of the followin isTRUE when piece rate system is used for wae
determination?
► Under this method of remuneration a worker is paid on the
basis of time taken by him to perform the work
► Under this method of remuneration a worker is paid on the
basis of production
► The rate is expressed in terms of certain sum of money for
total production
► The rate is not expressed in terms of certain sum of money
for total production

Question No: 33 ( Marks: 1 ) - Please choose one
Under Halsey premium plan, if the employee completes his job in less
than the standard time fixed for the job, he is iven:
► Only waes for the actual hours taken
► Waes for the actual hours taken plus bonus equal to one half
of the wae of the time saved
► Waes for the actual hours taken plus bonus equal to one third
of the wae of the time saved
► Only the bonus equal to one half of the time saved

Question No: 34 ( Marks: 1 ) - Please choose one
Which of the followin isNOT a reason for carryin inventory?
► To maintain independence of operations
► To take advantae of economic purchase-order size
► To make the system less productive
► To meet variation in product demand

Question No: 35 ( Marks: 1 ) - Please choose one
Restockin of stores, in order to ensure efficient functionin of the
stores department and steady flow of materials to the production
departments, is duty of:
► Manaers
► Storekeeper
► Production In chare
► Sales supervisor

Question No: 36 ( Marks: 1 ) - Please choose one
You made Rs. 10,000 loan to your cousin's company. At the end of one
year, the company returned to you Rs. 10,850. The Rs. 850 is called
which one of the followin?
► Increases in loan
► Increases in dividends
► An 8.5% return on investment
► All of the iven options

Question No: 37 ( Marks: 1 ) - Please choose one
The net sales of the business totals Rs. 200,000 and the Cost of oods
Sold for the same period totals Rs.146,000. What is the ross marin
ratio?
► 0.22
► 0.25
► 0.27
► 0.33

Question No: 38 ( Marks: 1 ) - Please choose one
If, ross profit = Rs. 40,000
P Marin = 25% of sales
What will be the value of cost of oods sold?
► Rs. 160,000
► Rs. 120,000
► Rs. 40,000
► Can not be determined

Question No: 39 ( Marks: 1 ) - Please choose one
Cost accountants are concerned about the ratios relatin to the
Profits and Manufacturin costs. These ratios miht include:
► ross Mark up rate
► Inventory turnover ratio
► Cost of oods sold to sales ratio
► All of the iven options

Question No: 40 ( Marks: 1 ) - Please choose one
The total cost to produce one unit is Rs. 600. Direct materials are
20% of the total cost and direct labor is 1/3 of the combined total of
direct labor and direct materials. What was the cost for direct
materials, direct labor, and factory overhead?
► Rs. 420, Rs. 60 and Rs. 120, respectively
► Rs. 60, Rs. 120 and Rs. 420, respectively
► Rs. 120, Rs. 60 and Rs. 420, respectively
► Rs 60, Rs. 420 and Rs. 120, respectively

Question No: 41 ( Marks: 10 )
CK Products Limited purchased materials of Rs. 550,000 and incurred
direct labor of Rs. 420,000 durin the year ended June 30, 2006.
Factory overheads for the year were Rs.380,000. The inventory balances
are as follows:


July 1, 2005 June 30, 2006
Rupees Rupees
Finished oods
90,000 105,000
Work in
process
121,000 110,000
Materials
100,000 105,000

Required:
1) Cost Of oods Manufactured Statement.
2) Cost Of oods Sold Statement.

ANSWER:
CK Products Limited
Cost of oods sold statement
For the year ended June 30, 2006

Rupees
Openin inventory
100,000
Add: purchases
550,000
Less: Closin inventory 105,000
Direct material used
545000
Add: Direct labour
420,000
Prime
Cost
965,000
Add: factory overhead cost 380,000
Total factory cost
1,345,000
Add: openin work in process 121,000
Cost of oods to be manufactured 1,466,000
Less: closin work in process 110,000
Cost of oods manufactured 1,356,000
Add: Openin finished oods 90,000
Cost of oods to be sold
1,446,000
Less: closin finished oods 105,000
Cost of oods sold
1,341,000