1
Under which incentive wage system two piece rates (high and low) are determined:
A)
Gantt system
B)
Rowan Premium Plan
C)
Emerson Efficiency Plan
D)
Taylor's Differential System
Answer & Solution
Answer: Option
D
2
When the contract is not executed at the end of the accounting year, profit on an incomplete contract is transferred to
A)
In letter
B)
In Accumulation/Reserves
C)
Profit and loss account
D)
Profit and loss account and accumulation/reserves
Answer & Solution
Answer: Option
D
3
Which of the following system applies when standardised goods are produced under a series of operations?
A)
Job order costing
B)
Process costing
C)
Standard costing
D)
Kaizen costing
Answer & Solution
Answer: Option
B
4
Improvement of profit volume ratio can be done by
A)
increasing selling price
B)
altering sales mixture
C)
reducing variable cost
D)
All of these
Answer & Solution
Answer: Option
D
5
If the normal cost of normal production of 80 units is Rs. 400, then the value of abnormal wastage of 5 units will be
A)
Rs. 25
B)
Rs. 1
C)
Rs. 1600
D)
Rs. 1800
Answer & Solution
Answer: Option
A
6
What is the gross profit if the total sale is Rs. 2,60,000, the cost of net goods sold is Rs. 2,00,000, and sales return is Rs. 10,000?
A)
13%
B)
28%
C)
26%
D)
20%
Answer & Solution
Answer: Option
D
7
Material control does not cover the following stage:
A)
purchase of materials
B)
storing of materials
C)
issue of materials
D)
production
Answer & Solution
Answer: Option
D
8
Prime cost is Rs. 16,000. Material is 60% of labour. Labour is
A)
Rs. 5,000
B)
Rs. 6,000
C)
Rs. 10,000
D)
None
Answer & Solution
Answer: Option
C
9
What may be the principle budget factor in case of plant?
A)
General shortage of power
B)
Shortage of experienced salesman
C)
Insufficient capacity
D)
All of the above
Answer & Solution
Answer: Option
C
10
Why are the estimated benefits from a project are expressed as cash flows instead of income flows?
A)
It is cash, not accounting income, that is central to the firm's capital budgeting decision
B)
It is simple to calculate cash flows than income flows
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
A
