(A) Total production Cost
(B) Prime Cost
(C) Conversion Cost
(D) Total manufacturing Cost
Tag: Financial Accounting Mcqs
The main purpose of cost accounting is to:
(A) Maximize profits.
(B) Help in inventory valuation
(C) Provide information to management for decision making
(D) Aid in the fixation of selling price
When a manufacturing process requires mostly human labor and there are widely varying wage rates among workers, what is probably the most appropriate basis of applying factory costs to work in process?
(A) Machine hours
(B) Cost of materials used
(C) Direct labor hours
(D) Direct labor dollars
The cost expended in the past that cannot be retrieved on product or service?
(A) Relevant Cost
(B) Sunk Cost
(C) Product Cost
(D) Irrelevant Cost
A disadvantage of an hourly wage plan is that it:
(A) Provides no incentive for employees to achieve and maintain a high level of production.
(B) Is hardly ever used and is difficult to apply.
(C) Establishes a definite rate per hour for each employee.
(D) Encourages employees to sacrifice quality in order to maximize earnings.
Which of the following represents a CVP equation?
(A) Sales = Contribution margin (Rs.) + Fixed expenses + Profits
(B) Sales = Contribution margin ratio + Fixed expenses + Profits
(C) Sales = Variable expenses + Fixed expenses + profits
(D) Sales = Variable expenses –Fixed expenses + profits
Percentage of Margin of Safety can be calculated in which one of the following ways?
(A) Based on budgeted Sales
(B) Using budget profit
(C) Using profit & Contribution ratio
(D) All of the given options
The difference between total revenues and total variable costs is known as:
(A) Contribution margin
(B) Gross margin
(C) Operating income
(D) Fixed costs