Gls University'S Faculty of Commerce Semester - Iv Cost Accounting - 2 Objective Questions 2017-2018
Gls University'S Faculty of Commerce Semester - Iv Cost Accounting - 2 Objective Questions 2017-2018
Gls University'S Faculty of Commerce Semester - Iv Cost Accounting - 2 Objective Questions 2017-2018
FACULTY OF COMMERCE
B.COM. SECOND YEAR
SEMESTER – IV
COST ACCOUNTING – 2
Objective Questions 2017-2018
1. A company manufactures and sells a single product, which has a variable cost of ₹ 40 per unit
and a contribution to sales ratio of 40%. Monthly fixed costs are ₹ 14,40,000. What is the
monthly BEP (in units)?
(A) 36,000 (B) 40,000 (C) 60,000 (D) 90,000
2. Contribution =
(A) Selling Price + Variable Cost
(B) Selling Price – Variable Cost
(C) Fixed Cost + Variable Cost
(D) Selling Price – Fixed Cost – Variable Cost
3. A company has calculated its margin of safety as 20% on budgeted sales and budgeted sales
are 5,000 units per month. What would be the budgeted fixed costs if the budgeted contribution
was ₹ 25 per unit?
4. A company wishes to make a profit of ₹ 7,50,000. It has fixed costs of ₹ 3,75,000 with a C/S
ratio of 75% and a selling price of ₹ 150 per unit. How many units would the company need to
sell in order to achieve the required level of profit?
(A) 10,000 (B) 15,000 (C) 22,500 (D) 30,000
5. If P/V ratio is 50%, margin of safety is 40% and sales is ₹ 5,00,000, fixed costs will be of how
much rupees?
(A) ₹ 3,50,000 (B) ₹ 2,50,000 (C) zero (D) ₹ 1,50,000
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6. The costing method which shows relationship between Cost, Sales volume and Profit is called
–
(A) Break even point (B) Cost-Volume-Profit Analysis
(C) Margin of Safety (D) Contribution
7. If fixed expenses are ₹ 1,20,000, Variable expenses per unit are ₹ 12 and break even point is
10,000 units, then what will be the selling price per unit?
(A) ₹ 12 (B) ₹ 24 (C) ₹ 36 (D) All the above
8. Sales units 30,000; Fixed Expenses ₹ 5,40,000; Break even sales units 18,000
If sales price per unit is ₹ 70, calculate variable expenses per unit.
9. Variable expenses ₹ 6 per unit, Selling price ₹ 10 per unit and fixed cost ₹ 60,000 of a
company. If the company wants to earn 15% profit on sales, then what should be the sales?
(A) ₹ 2,40,000 (B) ₹ 6,00,000 (C) ₹ 2,00,000 (D) None of the above
10. Variable cost is ₹ 20 per unit and fixed cost is ₹ 40,000. If break even point is reduced to
2000 units, find out the new selling price per unit.
(A) ₹ 10 (B) ₹ 20 (C) ₹ 30 (D) ₹ 40
Q.2. Do as directed:
1. If P/V Ratio is 40%; Profit ₹ 28,000 (20% of Sales), then BEP = __________. (₹ 70,000)
4.The technique of costing which finds out the effects of changes in volume of output on
profitability is called ___________ costing. (Marginal)
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8.Absorption Costing is the system in which all variable and fixed costs are included to ascertain
the total cost of production. (True)
9.__________________ shows what each unit contributes towards fixed costs and profit.
(Contribution)
10.____________ is that volume of output at which neither a profit is made nor a loss is
incurred. (BEP)
1. Variable cost is ₹ 42, selling price is ₹ 50. For manufacture of one unit 2kgs of raw material
is used. Find the contribution per kg. of material. (₹ 4)
2. Selling Price is ₹ 8 per unit, variable cost is ₹ 6 per unit, fixed cost is ₹ 12,000. Calculate the
sales required to earn a profit of ₹ 4,000. (₹ 64,000)
3. The cost of production of an item is as follows: Materials ₹ 100, Wages ₹ 150, Variable cost
per unit 150% of wages, Fixed cost ₹ 50,000. If sales price of a unit is ₹ 500, then find the BEP.
(2,000 units)
4. The following information is supplied in respect of a factory:
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UNIT II STANDARD COSTING AND VARIANCE ANALYSIS
2. The standard which can be attained under the most favorable conditions possible is
known as
(a) Basic standard (b) Ideal standard (c) Current standard (d) Future standard
3. The purchase department manager is usually held accountable for
(a) Difference between total budgeted fixed overheads and actual fixed overheads
(b) Difference between total budgeted production and actual production
(c) Difference between total budgeted production capacity and total actual production
capacity
(d) Difference between budgeted efficiency s and actual efficiency of workers
8. Total Sales Margin Variance is a difference between
9. Budgeted Fixed overhead is .6, 000 for the month of March. Actual days worked are 26
and budgeted days are 25. The Calendar Variance is _______
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(a) 240 (F) (b) 240 (U) (c) 6240 (F) (d) 25 (U)
Q.2. Do as directed:
1. The standard material cost per unit for a product is : 20 liters at Rs. 2.5 per litre. Last
month the actual price paid for 24,000 litres for material used was 4 % above. No stock
of material was held. Calculate adverse direct Material Price Variance for last month.
Ans: -2400(U)
2. Material Usage variance is -30 (U), Material Cost variance is -66(U). Standard quantity is
30 kgs and actual material quantity is 36 kgs. What will be price per actual material
quantity per Kg.?
Ans: Rs. 6
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Ans: -2900(U) , +200(F)
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UNIT III OPERATING COSTING AND CONTEMPORARY
CONCEPTS IN COSTING
Q.1.
Multiple
Choice
Questions:
1. Which of the following cost unit is adopted by Goods Transport Co.?
(a) per ton (b) per trip (c) per ton km (d) per km
3. Cost per passenger km is Re. 0.25. Distance between two cities is 100 km. Profit
expected is 50% of fare income. What will be the bus fare?
(a) ₹ 50 (b) ₹ 37.50 (c) ₹ 25 (d) ₹ 40
5. The following details are obtained from Kamal Transport Company. Find out total tonne-
kilometers:
Total actual kms during the month 1,000
No. of trips 20
Total load carried 180 tonnes
(a) 3,600 (b) 20,000 (c) 1,80,000 (d) 9,000
8. Under Activity Based Costing, the _________ valuation is more accurate than with
conventional method.
(a) Stock (b) Cost (c) Price (d) Market
9. A relevant cost is
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(a) an opportunity cost
(b) a sunk cost
(c) a notional cost
(d) none of the above
10. There are certain costs which are not necessary to be taken into consideration while
selecting an alternative by management are called-
(a) Relevant costs
(b) Unavoidable costs
(c) Irrelevant costs
(d) Avoidable costs
Q.2. Do as directed:
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2. No. of buses 5
Days operated in the month 25
Daily round trips of each bus 4
Distance between two places 20kms
Capacity of the bus 50 passenger
Normal passengers travelling 90% of the capacity
Find out Passenger kms and Total kms
(Passenger kms – 9,00,000 and Total kms – 20,000)
3. Find out passenger km fare for a city bus of one transport company from the
following information:
Km Passengers
1 10,000
2 15,000
3 20,000
Total expenditure ₹ 50,000
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UNIT IV PROCESS COSTING AND RELEVANT COSTING:
Q.1. Multiple Choice Questions:
1.Process Costing Is Not Implemented in ........................Industry.
(a) Soap (b) Dairy (c) Rubber (d) Construction.
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2.Per Unit cost of normal output is always equal to per unit cost of ...............
(abnormal Loss or Gain)
3..................... is unavoidable kind of loss in Process. (Normal Loss)
4 In process account Normal loss is debited to .............(process account)
5. In process account abnormal loss is debited to .............(profit and loss account)
6.Combined Product means ................(Production of two equally important Items)
7.By Product means ................(Product is less important than main Product)
8. If some additional material is introduced in process we have to prepare .......... materials
columns in statement of equivalent production. (Two)
9.There cannot be abnormal loss and ................. in same process. (abnormal gain)
10.For calculating cost per unit of material cost of ............... is subtracted from material cost.
(cost of normal loss)
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Actual Profit Rs. 18726
(Ans: 20800)
5.Department 1 began the month with 1000 units in process , completed 2400 and closed with
1600 units in process. Calculate the units introduced during the month.
(Ans.:3000 Units)
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