If units started in process are 35,000, units still in process are 5,000 and degree of completion is 100% materials & 40% conversation cost. Which of the following is Equivalent Production quantity of FOH cost?

• A) 35,000 Units
• B) 32,000 units
• C) 2,000 units
• D) 30,000 units

Half-completed 100 units can be regarded as:

• A) 150 equivalent completed units
• B) None of the given options
• C) 50 equivalent completed units
• D) 250 equivalent completed units

For adopting the process costing system, the industries must contain all of the following characteristics, EXCEPT:

• A) mass production
• B) production of homogenous goods
• C) production through interconnected operations
• D) production is made according to customer’s specific orders

A bag manufacturing concern started 1500 units in first department and at the end of the period units still in process are 500. How much unit completed and transferred to next department?

• A) 1500
• B) 1000
• C) 500
• D) 2000

Cost volume Profit analysis (CVP) is a behavior of how many variables?

• A) 4
• B) 3
• C) 5
• D) 2

Identify the correct formula for calculating the “Equivalent units produced” from the following options.

• A) 40% of completed units + 60% completed of work in process units
• B) 80% of completed units + % completed of work in process units
• C) 70% of completed units + 30% completed of work in process units
• D) 100% of completed units + % completed of work in process units

During the month if 12,500 units were completed, 1,500 (completed up to 25%) units remained in work in process, how many equivalent units are produced?

• A) 12,125 units
• B) 12,500 units
• C) 14,250 units
• D) 12,875 units

Which of the following factors would cause the break-even point to change?

• A) All of the given options
• B) Increased sales volume
• C) Total variable costs increased as a function of higher production
• D) Fixed costs increased due to addition of physical plant

Product cost under absorption costing is characteristically:

• A) Higher sometimes and lower sometimes than variable costing
• B) Lower than under variable costing
• C) Equal to variable costing
• D) Higher than under variable costing

The Environmental Filter Company is planning to sell air filter systems for Rs. 2,500 per unit. Variable costs are Rs. 1,500 per unit and total fixed costs are Rs. 1,000,000. What is the value of sales necessary to break even?

• A) Rs. 2,000,000
• B) Rs. 2,500,000
• C) Rs. 5,000,000
• D) Rs. 1,000,000

If cost per equivalent unit, equivalent units of output and closing stock of a plastic toy manufacturing company given as Rs. 1.60 per unit, 50,000 and 10,000 units (40% completed) respectively, what would be the value of closing stock?

• A) Rs. 16,000
• B) Rs. 9,600
• C) Rs. 80,000
• D) Rs. 6,400

A chemical process has normal wastage of 5% of input. In a period, 3,500 Kg of material were input and there was no abnormal loss. What quantity of good production was achieved?

• A) 3,325 Kg
• B) 2,250 Kg
• C) 4,425 Kg
• D) 2,175 Kg

If joint products are to be processed further beyond the point of separation, costs should be assigned to the products on the basis of:

• A) Adjusted sales value
• B) Ultimate sales value
• C) A physical unit of measure
• D) An engineering analysis

Which of the following statements is/are correct?

• A) Cost incurred prior to the point of separation are known as common or joint costs.
• B) A by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products.
• C) Since a by-product is a saleable item it should be separately costed in the process account,and should absorb some of the process costs.
• D) A by-product is a product produced at the same time as other products which has a relatively high volume compared with the other products.

Contribution margin is the result of which of the following two variables?

• A) Variable and fixed costs
• B) Sales and Fixed cost
• C) Sales and variable costs
• D) Sales and operating profit

Units started in process can be computed as:

• A) Units completed in the department + Units still in process + Units loss (normal loss)
• B) Units completed in the department - Units still in process x Units loss (normal loss)
• C) Units completed in the department x Units still in process + Units loss (normal loss)
• D) Units completed in the department - Units still in process + Units loss (normal loss)

Net income reported under direct costing will exceed net income reported under absorption costing for a given period if:

• A) Production exceeds sales for that period
• B) Production equals sales for that period
• C) The fixed overhead exceeds the variable overhead
• D) Sales exceed production for that period

Which of the following does not use process costing?

• A) Cement companies
• B) Accounting firms
• C) Pharmaceutical companies
• D) Textile companies

Which of the following is the best definition of a by-product?

• A) A by-product is a product arising from a process where the wastage rate is unpredictable
• B) A by-product is a product arising from a process where the wastage rate is higher than a defined level
• C) A by-product is a product arising from a process where the sales value is insignificant by comparison with that of the main product or products
• D) A by-product is a product arising from a process where the sales value is significant by comparison with that of the main product or products

Profit under absorption costing will be higher than under marginal costing if:

• A) Produced units < Units sold
• B) Produced units > Units sold
• C) Profit cannot be determined with given statement
• D) Produced units =Units sold