Variable costing is also known as:

• A) Indirect Costing
• B) Direct Costing
• C) Marginal Costing
• D) Both Direct Costing & Marginal Costing

Which of the following is the best characteristic of a by product:

• A) Usually produces a larger amount of revenue than the main product
• B) Is created along with the main product, but its sales value does not cover its production cost
• C) Has a lower selling price than the main product
• D) Is produced from material that would otherwise be of no value

At the end of the accounting period, a production department manager submits a production report that shows all of the following EXCEPT:

• A) Number of units completed
• B) Number of units in the ending work in process and their estimated stage of completion
• C) Number of units in the beginning work in process
• D) Number of units sold

Which of the following is/are reason(s) for occurring of abnormal loss?

• A) All of the given
• B) Defective material used
• C) Machine breakdown
• D) Poor workmanships

A bag manufacturing concern completed 1500 units and 500 units are still in process (100% completed with respect to material, 75% completed with respect to conversion cost). Required: What is equivalent unit produce of direct labor?

• A) 500
• B) 2000
• C) 1875
• D) 1000

Which of the following costing methods provide the added benefit of usefulness for external reporting purpose?

• A) Variable costing
• B) Marginal costing
• C) Absorption costing
• D) Neither absorption nor marginal costing

In cost of production report, if, equivalent units with respect to: Direct material: 800; Direct labor: 500 and FOH: 450. Required: Identify “material cost per unit ” if direct material cost is Rs. 1625.

• A) Rs. 2.03
• B) Rs. 3.61
• C) Rs. 3.25
• D) Rs. 1.71

Which one of the following statements is Correct while comparing common cost and joint cost?

• A) They differ since common cost products or services have been obtained separately
• B) Common cost is sometimes used as joint cost
• C) Both have the same objective of assigning production cost to cost center
• D) The terms can be correctly used interchangeably

An assumption of CVP analysis is that a change in total costs is caused because of a change in which of the following factors?

• A) Direct labor cost
• B) Direct material cost
• C) Sales commission per unit
• D) The number of units sold

When closing stock is over valued, what would be its effect on profit?

• A) Cannot be determined
• B) It will Increase the profit
• C) No effect on profit
• D) It will decrease the profit

A chemical process has normal wastage of 10% of input. In a period, 2,500 Kg of material were input and there was abnormal loss of 75 Kg. What quantity of good production was achieved?

• A) 2,500 kg
• B) 2,425 kg
• C) 2,175 kg
• D) 2,250 kg

Company A's fixed costs were Rs.45,000, its variable costs were Rs. 24,000, and its sales were Rs.80,000. What is the company's break-even point in sales Rs?

• A) Rs. 33,000
• B) Rs. 57,000
• C) Rs. 79,000
• D) None of the given options

In cost of production report, if, equivalent units with respect to: Direct material: 800; Direct labor: 500; and FOH: 450. Required: Identify “labor cost per unit ” if direct labor cost is Rs. 1600

• A) Rs. 3.56
• B) Rs. 1.71
• C) Rs. 3.20
• D) Rs. 2.00

In cost of production report; which of the following formula is used to compute cost per unit?

• A) Total cost - Units completed but in hand
• B) Total cost ÷ Equivalent units produced
• C) Total cost + Units completed and transferred out
• D) Total cost x Units put into process

Units started in process: 1,100 Units completed in the department: 800 Units still in process: 250 Units Lost (Normal) = ?

• A) 300 units
• B) 50 units
• C) 1050 units
• D) 1900 units

Following calculation has been extracted from the section of ‘Equivalent Units Produced’ of cost of production report.

Direct labor & FOH = 1500+ (? x 30%) = 1530

Required: Identify the missing value of units in process which are used in above working.

• A) 100 units
• B) 30 units
• C) 1500 units
• D) 1530 units

A bag manufacturing concern completed 1500 units and 500 units are still in process (100% completed with respect to material, 75% completed with respect to conversion cost). Required: What is equivalent unit produce of factory overhead (FOH)?

• A) 1875
• B) 1000
• C) 2000
• D) 500

Direct material cost related to opening WIP units and units produced in current period is given as Rs. 15,000 and Rs. 335,000 respectively. What will be the correct material per unit cost under weighted average method in presence of equivalents production units of 12,000 with respect to material?

• A) Rs. 27.92
• B) Rs. 29.17
• C) Rs. 1.25
• D) None of the given options

Cost of production report is prepared in which of the following cost accumulation method?

• A) Job order costing
• B) Process costing
• C) Marginal costing
• D) Absorption costing

In cost of production report of ABC company; 5,500 units are still in process complete which are 100% complete as to direct material and 75% with respect to labor and FOH.
Required: Identify the correct value of material cost in “cost apportioned” section if material per unit cost is Rs. 15.

• A) Rs. 4,125
• B) Rs. 61,875
• C) Rs. 82,500
• D) Rs. 5,500