MANAGEMENT ACCOUNTING

From which of the options given, are hving equal meaning for ‘factory overheads’

A)  Direct material cost   B)  Direct labour cost   C)  Direct expenses   D)  Manufacturing overheads  

Manufacturing overheads

There can be a number of methods for absorptions the overheads but the ultimate selection of methods has to be made after considering various factors. From the given options select such a factor to be considered

A)  Type of industry and Nature of products   B)  Number of employees working in the organization   C)  Type of payment to the employees   D)  Goodwill of the company in the market

Type of industry and Nature of products

__________________ can be example of indirect expenses in the manufacturing process

A)  Stationery material   B)  Lighting, telephone expenses   C)  Wages paid to store keeper   D)  Salaries to account department

Lighting, telephone expenses

A big advantage of Machine Hour Rate Method (while deciding of overhead absorption) is while computing the machine hour rate, it is not necessary to considered the various overheads required to be incurred for running a machine or a group of machine

A)  TRUE   B)  FALSE

False

With the process primary apportionment o distribution, the loading of overheads for all departments for all departments can be obtained, what would be the next step

To transfer the overheads of non production 

From the given options Which are the examples of indirect material in manufacturing process?

A)  Salary of works manager   B)  Wages to store keeper   C)  Cotton waste   D)  Oils & lubricants

C,D

The definition of the term “Marginal Costing” requires the computation of?

A)  Marginal cost   B)  Market prices-Cost-Profit Relationship   C)  Fixed cost-Volume-Profit Relationship   D)  Cost-Volume-Profit Relationship

A,D

When the Renewal Method of Depreciation can be used

A)  If asset is owned by business   B)  If asset is of small value   C)  If asset is renewed frequently   D)  If asset loses its market value

B,C 

If the management facing problem to decide whether the product should be manufactured in house which can be purchased from an outside source as well,& If Purchases price> Variable cost, which decision should be taken

A)  Half the quantity should buy from the outside source, and half the quantity should be manufactured in house   

B)  Product Should be bought from the outside source   C)  Product should be manufactured in house   D)  Make or decision can not b taken on the basis of marginal cost analysis

Product should be manufactured in house