Costing questions and answers pdf Question-24: What is the operating leverage? and how Try our FREE ACCA PM Past Paper questions from syllabus B3. (iii) False – Internal instruction to buy the specified quantity and description is called purchase The Cost Accounting Quiz Questions and Answers PDF: Cost Accounting Competitive Exam Questions & Chapter 1-29 Practice Tests (Class 8-12 Accounting Textbook Questions for Beginners) includes revision guide for problem solving with hundreds of solved questions. This document contains information about a cost accounting exam for a Bachelor of Commerce degree program. 10 Key Words 15. product costing ANSWER: C II Short Answer Type Questions: 1 “The term ‘cost’ must be qualified according to its context”. BASIC QUESTIONS OF STANDARD COSTING Question-1- MATERIAL The Standard Cost for producing 180 kgs of a product whose Raw Material inputs are A and B is given below – (1) Fixed cost per unit _____ when volume of production increases. Download PDF. 2 Meaning and Cost Classification of Service Costing 18. ABC Company's material purchase price and quantity variances are calculated. Acowtancy Free Sign Up Log In. 17,200. 8 Limitations of Marginal Costing 15. The students 4. This document contains 8 practice questions related to standard costing. Activity-Based Costing (ABC) is a system of costing, where costs are first g_nov08. 1 As mentioned above, the main advantage of adopting target costing is that it is deployed during a product’s design and planning stage so that it can have a maximum impact in determining the level of the locked-in costs. 1 INTRODUCTION In the preceding unit, we familiarised you with the different elements of cost i. Coleman Company makes a component for its products and is considering outsourcing production. It has a cost of capital of 12% per year. It’s a product’s anticipated cost under current or anticipated operating conditions. Costs are estimated and compared to the target cost, and any cost gap is This method of costing on the full production cost (direct plus indirect costs) of manufactured products. Question Nos. Answer: b. Income Statement for 2012 Interview Guide & 150 Construction Project Management Interview Questions and Answers; 100 interview questions and answers for Microsoft Excel [2023 Updated] Project Coordinator Technical Interview Questions [Practice Test] Top 100 Interview Questions and Answers on the strength of Materials: Your Ultimate Guide to Acing the Interview Answer any two questions from the following. Problem 1 involves setting standards for direct materials and labor for a new product. E. It defines estimate, estimating and costing. The document discusses marginal costing and absorption costing concepts. Students shared 403 documents in this course. 13. This document provides examples and solutions for cost accounting questions. (ii) False. Also, the direct labor cost was $160,000 and factory overhead applicable to production was $60,000. In terms of flow of cost, the principle that FIFO follows is clearly reflected This document contains 34 questions related to cost and management accounting. (b) (i) True. The standard product cost card of a product is shown below. Marginal cost per unit remains unchanged irrespective of the level of activity or output. Get the complete study material, ppt, courses, question paper, mcq. docx), PDF File (. It includes questions grouped under four units: 1) Introduction to engineering economics including concepts like law of demand, opportunity cost, marginal cost, etc. There is no negative mark for incorrect answers. Workshop week 4 - in class assignment. Costs are This document provides practice questions related to process costing and weighted average and FIFO costing methods. (3) In process costing, the output of the each process in the ____ of the next Calculate the cost of products P and Q based on the existing system of single overheads Recovery rate. Financial Accounting 90% (40) 71. Thus, the closing stock in Marginal Costing is under- Marginal & Absorption Costing - Free download as Word Doc (. September 2019. Then add the profit to the cost per unit (or total cost) in accordance of the information given in the question. The document contains a test bank with true/false questions, multiple choice questions, and word problems regarding fixed and variable costing concepts. These capacities of production are expressed in terms of cost in production cost budget. Cost of normal idle time which is uncontrollable is treated as Direct Labour Cost for each job. Since the labor rate variance is favorable, the actual cost of direct labor is less (by $5,500) than the standard cost. It lists materials of Rs. 12. Exam Sem 2, 2014 Questions and Answers. ACCA. The CA Inter suggested answers are currently available for Relevant Costing Sample Problems - Free download as Word Doc (. The questions cover topics like material and labor variances, calculating variances based on budgets, standard mixes and yields, and material price and usage variances. MC Question 2. These costs are directly tied to the product being made and can be easily traced. Variable costing ignores the concept of lower of cost or market when valuing inventory. Solved MCQs for Cost Accounting, with PDF download and FREE Mock test These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Management Studies (BMS) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) . It provides 3 multiple choice questions related to job costing concepts like treatment of indirect materials and calculating unit costs. These studies require a lot of time and money. g. Managerial accounting and financial Required: Prepare a schedule showing the worker's daily earnings, the effective hourly rate, and the labor cost per unit under the following conditions:. It plans on selling 40,000 units 1. Cost Accounting Questions and Answers PDF book covers basic concepts, analytical and practical Activity Based Costing Questions: Q. He has over 8 years of experience teaching costing and clearing all CA levels in the first attempt. pdf. Test Your Knowledge If you can’t answer all of the questions below without looking at the answer then you need to do some more work on this area! Free Target Costing and Target Pricing Multiple Choice Questions (MCQ Quiz) with Answers PDF: "Target Costing and Target Pricing MCQ" App Download, MBA Cost Accounting e-Book PDF to learn online BBA courses. Thanks. 428,000 The data extracted from a quantity schedule related to the above processes are as follow: UnitsUnites in Process The most important characteristic of costs for decision making is how they behave— how they vary with activity is the key distinction for decision making. G. Variable costing procedures are not well known in industry. This document contains multiple choice questions and information about job costing. 5 Marginal Costing Equation and Contribution Margin 15. A 1. Specimen. Step 3: Select the activities and cost-allocation bases to use for allocating indirect costs to the products. The document discusses various types of construction cost estimates including: - Approximate estimates like plinth area, cube rate, typical bay, and service unit methods which provide preliminary cost calculations based on prior projects. This document contains two questions regarding life cycle costing. The document contains 34 multiple choice questions related to cost accounting concepts. Commences business on 1st April 2011 and dep Rs. Under job order cost accumulation, the factory overhead control account controls: A. The standard cost card shows the standard quantity and cost for materials and labor to produce an acceptable batch. Question 6. To make your preparation even more convenient, we’ve compiled all these top Cost Accountant interview questions and answers into a handy PDF. On 30 April, the inventories were as follows: Get Your Questions Answered and P-8: Cost Accounting - Bit Questions The Institute of Cost Accountants of India 2 (I) Choose the correct answer from the given alternatives: 1) In process, conversion cost means (a) Cost of direct materials, direct labour, direct expenses (b) Direct labour, direct expenses, indirect material, indirect labour, indirect expenses Cost Accounting Question Bank Final - Free download as Word Doc (. 13 Further Readings 15. ABC COSTING with answers. Solution: In cash break-even chart, only cash fixed costs are considered. cost reports processes E. (2) In printing industries, the method of ______ costing is applied. Be creative, using your knowledge of cars in general, in answering the questions. The document contains multiple choice questions about process costing. Learners are provided with standard and actual data and required to calculate the relevant variances to test their understanding of 3. The cost of production is shown in detail in respect of material cost, labour cost and factory overhead. It includes completion, short answer, and problem questions about topics like equivalent units, cost flows, multi-department process costing, standard costing, spoilage treatment, and cost assignment. Costs are accumulated by department. - Examples of fixed costs include straight-line depreciation and supervisory salaries. Financial Accounting II 86% (29) 3. COMMERCEPK. - Sanchez Co. 150 mcqs cost accounting. Alternatively, using a traditional costing Direct cost are those costs which can be conveniently associated wholly with a particular unit of a final product. This document provides definitions and explanations of key cost accounting terms including direct cost, absorption costing, variable costing, marginal costing, and the differences between absorption costing and marginal Answer: Direct costs are expenses that can be specifically attributed to the production of a good or service, such as raw materials or labor. Therefore, the basic idea in cost estimation is to estimate the relation between costs and the variables affecting costs, the cost drivers. Question 02: What is the Importance of Cost of Capital? Answer: The importance of the cost of This document lists 50 common estimating and costing lab viva questions and answers related to construction projects. 1 It is an iterative process with the design team, which ideally should result in the design team continuing with its The Cost Accounting Multiple Choice Questions (MCQ Quiz) with Answers PDF (Cost Accounting MCQ PDF Download): Quiz Questions Chapter 1-29 & Practice Tests with Answer Key (BBA MBA Accounting Questions Bank, MCQs & Notes) includes revision guide for problem solving with hundreds of solved MCQs. Get Cost accounting Multiple Choice Questions (MCQ Quiz) with answers and detailed solutions. c 80788 24 marks) Infotech Ltd. Problems based on ABC system- calculate Total cost and CPU of a product 3. Describe Job Costing and Batch Costing giving examples of industries where these are used (May 2001, 3 marks) OR Answer the following: Explain ‘Job Costing’ and ‘Batch Answer Absorption Costing is type of costing where the whole fixed cost is part of the expense when incurred, While Marginal Costing (Variable Costing) allocates the fixed cost depending on the number of units sold. Non-cash items like depreciation etc. Costing, only variable costs are considered while computing the value of work-in progress or finished goods. controlling C. 2. , cost, volume and profit, which explores the relationship existing amongst costs, revenue, activity levels and the resulting profit. Define Cost estimation. The document presents a test on absorption costing and variable costing methods. It shows sales of $48,000, cost of sales of $32,000, gross contribution of $16,000, and net profit of Estimate and Costing Question Answer - Free download as Word Doc (. Key concepts tested include definitions of direct cost, overhead cost, imputed cost, different types of costing methods and classification of costs. This document contains a quiz on production costs with 22 multiple choice questions. Gross profit = £4 per unit (£10 - £6) which is a margin of 40% of sales. It describes several methods for allocating joint costs to joint products for financial reporting purposes, including physical units, weighted average, and The cost driver of an indirect cost is often used as the cost-allocation base. 3. It includes 3 questions that calculate total earnings for workers producing different outputs under: 1) a bonus per 100 extra units of output, 2) straight piecework rates, and 3) the Halsey Premium Bonus The document contains 3 cost sheet problems with provided information. Using these rates, the customer margin is calculated for a client that used 62 cleaning hours over 31 jobs. Task B. Give examples of cost drivers commonly used to allocate overhead The ICMAI suggested answers or these CMA Intermediate question paper with answers pdf are indicative only and not exhaustive. Solution (i) BEP (units) = Fixed Expenses / C = ($542,000 + $252,000) / 6 Answer: The method of calculating the total cost of production by calculating the cost of different processes separately is called process costing. doc), PDF File (. 7 Terminal Questions/Exercises 12. 3 Cost Accounting Question-1 SECTION-A Explain and illustrate cash break-even chart. all general ledger subsidiary accounts C. 1. 6 Profit-Volume Ratio 15. The time and motion study is required to be undertaken for this purpose. The document provides examples and solutions for standard costing and A manufacturing concern, which has adopted standard costing, furnished the following information: Standard Material for 70 kg finished product: 100 kg. For each item below indicate the source documents that would most likely authorize the journal entry in a 1. • Employers’ national insurance contributions: these should be allocated on the basis of the salary costs in the two departments as higher salaries will mean higher employers’ national insurance costs. 0 OBJECTIVES The aims of this unit are: Cost Accounting Solved MCQs - Free download as PDF File (. nf 1. are excluded from the fixed cost for computation of break-even point. 5. 05. (Nov/Dec2012) The process of determining the probable cost of the product before the start of its manufacture. Small concerns may not be able to afford. Absorption and Variable Costing Quiz1 with Answers - Free download as PDF File (. CHAPTER 7 Joint Product and By-Product Costing - Free download as Word Doc (. job order cost sheets D. Excellent Ltd. The questions cover topics such as earthwork calculations, measurement of construction items, assumptions used in formulas, Exam 11 November 2016, questions; QUIZ PRACTICE MATERIAL FOR COST MANAGEMENT - GREAT MATERIAL TO PRACTICE; Related Studylists Management Accounting DONE. Calculate the cost of abnormal loss (or gain), closing work-in-progress and units transferred to the next process using FIFO method. Question 07: What does the opportunity cost? Answer: The amount of money lost by foregoing the best alternative for producing a good is referred to as its “opportunity cost. Q. Contract Costing 4 Problems and Solution - Free download as Word Doc (. because the opera Ions of the departments are so different. The following measures have been planned to improve the efficiency: 30% of the savings in labour cost 2. It includes 5 questions with answers on The material cost is a variable cost item and the amount of cost that one incurs entirely depends on the quantity of output. 8. materials Isha industries Limited uses a process cost system of there processes. University: University of Melbourne. This chapter discusses joint production processes that produce multiple products simultaneously. Which of these is not an objective of Cost Accounting? (a) Ascertainment of Cost Accounting Questions and Answers Part1 - Free download as PDF File (. Mention Three Main Reasons for Cost Accounting Cost accounting plays three major roles. e. The cost which is to be Question 14. The sum deposited would not be sufficient to s operations over a period Of four Cost-Accounting-2020-Question-Paper Author: CamScanner Subject: Identify the cost driver associated with each activity. It includes 20 true/false Paper 8: Cost Accounting (CAC) Introduction to Cost Accounting – 40%; Methods of Costing – 30%; Can I Get CMA Intermediate Question Papers With Answers PDF For Free? Yes, many websites offer CMA Intermediate question papers with answers PDF for free. The document provides expenditure details for a construction contract worth Rs. Discuss this statement referring to important concepts of cost. Click below Link to Download. imputed cost. CVP Multiple Choice Questions With Answer - Free download as Word Doc (. - Depreciation based on units documentation, for different cost accounting transactions (d) Explain the use of codes in categorising and processing transactions, and the importance of correct coding (e) Explain and illustrate the concept of cost units (f) Describe the different methods of costing final outputs and their appropriateness to different types of business Absorption and Marginal Costing - Additional Question With Answers - Free download as PDF File (. Job Costing Question Bank - Free download as PDF File (. It covers topics such as: - Types of costs including fixed costs, variable costs, total costs, average costs - Marginal cost and how it relates to changes in output - Short run and VARIANCE ANALYSIS PROBLEMS WITH ANSWERS (1) - Free download as PDF File (. Question-02: In what types of industries use the process costing method? Answer: Industries like chemicals, textiles, food, Steel, Sugar, Shoes, Petrol, etc. 7, 8, and are ICMA adapted. Paper Specimen. These are only guidelines, not to be constructed as complete answers. Section A. It covers topics like variable costs, prime costs, conversion costs, standard CA Inter Costing Question Bank in PDF. 174,250 Raw Material used Rs. 10 (Rs. Theory Meaning of ABC The activity-based costing (ABC) system is a method of accounting you can use to find the total cost of activities necessary to make a product. Evaluate your performance in your exam by referring to the suggested answer Download Cost Accounting Exam Questions and Answers 2023 and more Exams Accounting in PDF only on Docsity! 1 Cost Accounting Exam Questions and Answers 2023 Test 1 1. The questions cover topics such as objectives of cost accounting, types of costs (direct, indirect, imputed, etc. The value of work in process is based on assigning standard costs. production cost questions with answers - Free download as PDF File (. The following data relates to its process-01. 0. com/mcqs-complete-solved-multiple-choice-question-with-answer-key/ D. increase variable cost per unit e. Question 5. This document contains 5 multiple choice questions related to cost accounting concepts. 6 is compulsory and answer any 2 from the rest questions in Group B. Answer: TRUE Diff: 1 Terms: cost-allocation base Objective: 1 AACSB: Reflective thinking. work in process inventory. This document provides 300+ multiple choice questions and answers related to estimating and costing. The average cost per unit is $10, but the marginal cost of the 101st unit is $20 The cost of work completed but not certified was $10,500. ), cost quizzers chapter 14: process costing and the cost accounting cycle multiple choice abc company made the following journal entry. of units produced = Units Sold + Closing Stock – Opening Stock = 10,250 + 250 – 500 = 10,000 units. We focus on the relation between costs and one Answer: The cost of capital is the rate of return on investment that a company must earn in order to maintain the market value of its stock. Thus, marginal cost is the amount by which total cost changes when there is a change in output by one unit. Materials valued at $5,000 were on hand at site. Skip to document. : (i) Materials which form part of the finished product — cost of wood in a 1. The annual demand for a product is 6,400 units. Each question carries 1 mark. Activity Based Costing Cost Accounting 205 205 costing method that allocates indirect costs and overheads to Suggested Answers to Question — CMA 3 Answer 1. 9 Answers to Check Your Progress 18. P8_Practice Test Paper 8 : Cost Accounting and Financial Management Full Marks: 100 Time : 3 hours Question no. Direct costs can be directly identified with and allocated to cost centres or cost units. This document contains 8 practice questions related to marginal and absorption costing. Related topics: Deriving a Target Cost. Question-01: What is the standard cost? Answer: A standard cost is a cost of producing a single unit or a group of product units over a specific time period in the near future. It explains the purpose of estimating and costing is to know approximate costs, materials, time required and control expenditure. had the following inventories on 1 April 2019: During the month, the cost of materials purchased was $120,000. 13 Self-assessment Questions/ Exercises 8. The correct answer is A. ] Q. Cost of normal idle time which can be controlled is treated as Production Overheads. 6 Answers to Check Your Progress 12. Making the component in-house has a variable cost of $17 per unit while an outside supplier offers $18 per unit. PM Paper Exam. The document contains 5 sample problems related to job order costing. The cost per passenger KM would be Rs. Calculate the Economic Order Quantity (EOQ). The Target Costing and Target Pricing MCQ with Answers PDF: An estimated cost per unit in long run, which enables the company to achieve it's per 8. 5/kg; Actual production data are given as follows: Get Your Questions Answered and Book a Free Call if Necessary. Which of these is not an objective of Cost Accounting? (a) Ascertainment of Cost (b) Determination of Selling Price (c) Cost Control and Cost reduction (d) Assisting Shareholders in decision making . Solution. 0 OBJECTIVES After studying this unit, you should be able to: 0 define job costing and describe its special features + explain the procedure adopted for costing purposes in case ofjob costing + evaluate job costingas a method of cost ascertainment . Managerial Accounting 100% (4) More from: Accounting treatment of Idle Time Cost in Cost Accounts: 1. as “a document which provides for the assembly of the detailed cost of a cost centre or cost unit. (v) Disposition of variances: Variances arise are disposed-off by transferring it the relevant accounts (costing profit COST ACCOUNTING PAPER FOR MARCH 2021 DIET QUESTIONS AND MARKING SCHEME Time Allowed: 3 hours SECTION A: PART I MULTIPLE-CHOICE QUESTIONS (30 MARKS) Use the following information to answer questions 5 and 6 Buildwell Enterprises presents the following information: Economic Order Quantity 300 units Download from this section IPCC May 2018 Question papers with suggested answers pdf. You should provide car specific examples. The first question provides cost information for a new MP3 player model over its 3 year life cycle. Download CE8701 Estimation, Costing and Valuation Engineering (ECVE) Books Lecture Notes Syllabus Part A 2 marks with answers CE8701 Estimation, Costing and Valuation Engineering (ECVE) Important Part B 13 marks, Direct 16 Mark Questions and Part C 15 marks Questions, PDF Books, Question Bank with answers Key, CE8701 Estimation, Costing and Valuation The document discusses activity-based costing systems used by two companies, Duckhorn Housecleaning and TriCo. For this question, calculate Break-even point in terms of both units and sales. 2) Time value of money concepts like present worth, future worth, annual Activity Based Costing Practice Questions and Answers - Free download as PDF File (. In other words in the case of material cost, the standards are always for the actual output. Problem 1 provides information to prepare a cost sheet for the year ending March 31, 2019. ANS: A 37. This document contains 35 multiple choice questions related to the topic of cost and management accounting from a past exam for semester 6 of the BCom IT program from 2011-2014 at Dr. Net earnings are always overstated when using variable costing procedures. COM http://www. The document contains 20 multiple choice questions that test understanding of concepts related to cost-volume-profit (CVP) analysis, break-even point, contribution margin, unit contribution margin, and how changes in variables like Question 6. 1: (Compulsory question) Answer the followings: (a) List the objective of CAS-4 . docx - Free download as Word Doc (. It defines efficiency Cost of carrying one kg of raw material for one year: $0. Thus, if the standard material cost per unit is ```` 5, and if the actual output is 100 units, then, the standard cost is ```` 500. use the Process Costing method. It provides steps to master costing concepts and questions for exam preparation. 319206661-Cost-and-Management-Accounting-Mcq. Enhance your preparation with our expert-verified resources, available in PDF format on our Studycaller App. Process costing is a costing system target cost answers - Free download as Word Doc (. Problem 1: Job Order Costing Cycle. Each question carries 15 marks. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The basic objectives of transport costing are: 1. doc - Free download as Word Doc (. Materials 2 feet length, 1/4 inch thick @ $16: $32: Factory overhead labor 4 Mcq on process costing - Free download as Word Doc (. Course. Bankruptcy Practical Question 1. 12 Further Readings . pdf), Text File (. The official ICAI website is a reliable source for these papers. This document contains a question bank with questions and answers related to the subject of Engineering Economics and Cost Analysis. PM Computer Based Exam. Some part of operating costs of these undertakings is fixed cost and the other part is the variable cost. (Nov/Dec 2012, May/June 2013)(April/May 2015) (Nov/Dec 2015) Costing is the determination of an actual cost of a component after adding different expenses incurred invarious departments. Download these Free Cost accounting MCQ Quiz Pdf and prepare for your upcoming exams Like Banking, SSC, Railway, UPSC, State PSC. Access comprehensive suggested answers for Advanced Accounting, Laws, Taxation, Costing, Audit, and FM & SM, curated as per the ICAI's new syllabus. The price is $250 per unit and there are fixed expenses of $12,000 per month. Define Costing. Specifically: 1. Cost Per Unit Product A Product B Absorption Costing $70 $ ABC $76 $72. Overheads Per Unitr Unit 26 6. Cost Accounting Questions and Answers - Free download as PDF File (. The questions cover topics such as calculating costs under absorption and variable costing methods, identifying which method is being used based on cost information b. The document discusses assignment topics related to building estimates. What is Cost-Volume-profit analysis and what are its objectives. PM. txt) or read online for free. 2,40,000, wages of Rs. (ii) False – Cost accounting is an internal reporting system for an organistaion. The document provides budgeted profit and loss information for Surat for the month ended December 31, 2001 using marginal costing. 6 COST AND MANAGEMENT ACCOUNTING further action. The standard cost card shows the following details relating to the materials needed to produce 1 kg of groundnut oil: Quantity of groundnut oil required: 3 kg; Price of groundnut oil: $2. This project was developed under the target costing approach rather than the traditional cost-plus approach. This document contains a question bank on cost and management accounting topics. Problems involving calculations of Total cost and CPU under both Traditional and ABC methods. This document contains 59 multiple choice questions related to cost and management accounting concepts. pdf . Estimate and costing question answer. The document provides answers to multiple choice questions about standards and variances. University 4000 Questions And Answers On The Job Order Costing SAMPLE PROBLEMS - Free download as Word Doc (. Compute a cost rate per activity unit (e. Get Your Questions Answered and Book a Free Call if Necessary. The cost Download Cost Accountant Interview Questions in PDF. 9-7. 7 Managerial Uses of Marginal Costing 15. 1 INTRODUCTION . These costs are incurred in connection with each batch processed, and are WWW. Indirect Costs – those costs not directly linked to a product being manufactured 300+ TOP ESTIMATING & COSTING Multiple Choice Questions Answers - Free download as PDF File (. 4, 5, and 18 are AICPA adapted. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, [Attempt all questions. ca inter Cost and Management Accounting Question Bank for Regular Practice. The document provides sample problems related to standard costing and variance analysis. Eg labour and materials needed to make the product. It then calculates the total manufacturing cost by adding direct labour3 - Free download as PDF File (. First, it is used to determine the cost of a product through different costing methods. You will get the question papers right after the exam. Paper 6 - Financial Management and Strategic Management. This document provides examples of calculating worker remuneration under different bonus schemes. NEW TERMS . Return to subject. d. Each problem provides direct materials, direct labor, machine hours and overhead rates for a job. 3,28,000, plant of Rs. commercepk. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, question 3 asks about [Attempt all questions. Beginning inventor Rs. in the Global Trust Bank. It depicts the level of output or sales at which the sales revenue will 15. Question 06: What are the indirect costs? Answer: Indirect costs are expenses that cannot be directly attributed to a specific cost object, such as overhead costs or Stepped cost Supervisors’ salaries Answer 1. A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. a. Problem 2 involves calculating materials purchase price and quantity Budgeting - cost accounting Cash budget questions and answers cost accounting Cash budget. Company uses the Halsey Premium Plan with a guaranteed rate of $1. It provides Question 1. Damodaran College of Science. What is the company’s return on investment? A 30% B 12% C 18% D 22% 12 A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct material cost from its actual direct material cost for the period. The standard cost is $80,500. Cost Accounting Acharya Institute of Graduate Studies III SEM, BBA Module -1 Introduction to Cost Accounting Cost sheet is defined by C1MA, U. Direct Costs – are those costs directly linked to a product being manufactured. Life-cycle Costing. factory overhead analysis sheets B. The manufacturing Answer: The high-low method is a mathematical method used to classify mixed costs into fixed and variable components using the total costs incurred at high and low activity levels. planning B. For Duckhorn Housecleaning, activity rates are computed for cleaning, job support, and client support activities. Click the button below to download the PDF and have easy access to these essential questions anytime, anywhere: Paper 4 - CA Intermediate Jan 2025 Cost Accounting Question Paper. There are three duction departments, and separate departmental overhead application rates are elli'ployed Lanen 3e, Chapter 7: Job Costing Practice Quiz . profit sharing D. Allocate costs to products by multiplying the activity rate times the volume of activity consumed by the product. These are - (a) Set-up Cost (or Preparation Cost): The processing of a particular batch gives rise to clerical and machine set up costs followed by machine disassembly costs on completion of the batch. ACCA CIMA CAT / FIA DipIFR. K. The process of setting standard is a difficult task, as it requires technical skills. It wants the informations about the Answers: Q. 1 Ans: (i) Traditional Costing System Particulars Lemon Grapes Papaya Total Revenue 79,350 2,10,060 1,20,990 4,10,400 Less: Cost of Support sold (COGS) 60,000 1,50,000 90,000 3,00,000 Marginal _ Absorption Costing - Practice Questions With Solutions - Free download as PDF File (. Accounting Financial Advisor Top Terms. It asks to explain life cycle costing, state how it differs from traditional actual cost for each department. Download these Free Estimation and Costing MCQ Quiz Pdf and prepare for your upcoming exams Like Banking, SSC, Railway, UPSC, State PSC. Try our FREE ACCA PM Past Paper questions from syllabus B3. doc / . 297,000 Direct Labour Cost used Rs. A profit centre is a centre Cost Accounting Questions and Their Answers - Free download as Word Doc (. Its second use is to determine the selling price of a given product, which helps the business recover the production cost and earn some profit. pdf - Free download as PDF File (. , rate per setup, rate per part, rate per machine-hour). 18. 50,000 / 5,00,000 Passenger KMs). Problem 2 provides information to prepare a cost sheet for the year ending December 31, 2018. Marginal Cost means Variable Cost. (b) (i) False – The cost of drawing, design and layout is an example of direct expense and not of production cost. Total cost is 50,000 and Passenger KMs are 5,00,000. 12,00,000 for the year ending 31-12-2015. Determine the most of products P & Q using Activity Based Costing system. 2018 MCQ SAMPLE QUESTIONS (2019-2020) Cost Accounting (SEM VI) 1) Materials Requisition Note a) authorises and records the issue of materials for use Fixed cost/contribution per unit This document contains 5 multiple choice questions related to cost accounting concepts. 50; Required. Some example questions covered include defining estimates, units of measurement, types of estimates, data 05 Absorption vs Variable Costing Answer KEY - Free download as PDF File (. Total salaries are £100,000 + £300,000 = £400,000. Materials Cost Per U st Per Unit 30 50 Labour Cost Per Un Per Unit 20 16 76 72. Subjects Suggested Answers; Paper 1 CA Inter May 2024 Advanced Accounting: Download: Paper 2 CA Inter May 2024 Corporate and Other Laws : Download: Paper 3 CA Inter May 2024 Taxation: Download: Paper 4 CA Inter May 2024 Cost and Management Accounting: Download: Paper 5 CA Inter May 2024 Auditing and Ethics: Download: Paper 6 CA Inter May Download Cost Accounting Notes, Book, Syllabus, PDF | BBA, BCOM. Subject Exam Questions B2. 12 Terminal Questions 15. The document discusses estimating and costing methods. Section A: Q2. 40,000 and overheads of Rs. 2. Based on this, performance is evaluated and appropriate actions are taken. BT MA FA LW Eng PM TX UK FR AA FM SBL SBR INT SBR UK AFM APM ATX UK AAA INT AAA UK. The questions cover topics such as objectives Chapter 5 JOB ORDER COSTING MULTIPLE CHOICE Question Nos. Model Answer to Question 2 (a) Budgeted variable production overhead absorption rate: Using the high-low method: 2. It introduces Purushottam Aggarwal, a CA and faculty who teaches costing. Comparison. 0 OBJECTIVES: After studying this unit you should be able to : PRODUCTION COST BUDGET: This budget shows the estimated cost of production. c. The production budget demonstrates the capacity of production. The costs are easily traced to a specific product. Accounting 94% (31) 2. The document discusses costing concepts and decision making techniques through examples. Step 2: Identify the direct costs of the products. manufacturing company employs job costing to account for its costs. The magazine contains Download Free PDF. Show the Process Account for Dec. Read this guide providing practical questions and answers that will gauge your understanding. b. Students are to complete the questions to prepare for higher Costs: The determination of EBQ involves two types of costs. 9 Summery 15. Section A – Cost Accounting (Full Marks: 60) Question No. 11 Self-Assessment Questions . It includes: 1) Instructions for private candidates to answer questions in the provided answer book for Section I and within the question paper for More formally, the marginal cost is the derivative of total production costs with respect to the level of output. Paper 5 - Auditing and Ethics. 50 × 10,000 SP × 10,000 $75,000 $80,500 $5,500 F Labor Rate Variance $80,500 ÷ 10,000 actual direct labor hours equals a standard rate of $8. University; High School; Exam 2015, questions and 69950789-Standard-Costing-and-Variance-Analysis-Problems. Cost of abnormal idle time is not treated as part of cost and hence charged to A) The variable cost is $0 per unit of activity B) The fixed cost is $2, C) The variable cost is $2 per unit of activity D) The fixed cost is $1, Level: Easy LO: 3 Ans: D At an activity level of 4,000 machine-hours in a month, Curt MARGINAL COST AND MARGINAL COSTING Marginal cost is defined as cost of producing one additional unit. Problem 3 provides information for Raj Industries Ltd to prepare a cost sheet and calculate profit/loss. The document provides information on variances calculated for ABC Company and OP Co. 10erminal Questions / Exercises T: 18. To determine the cost of carrying passengers or goods. ANSWER: A 12. Answer the following questions regarding the development of the Neon car. Target Costing. 3 Characteristics of Service Costing 18. Also, show the profit at 90% capacity. Labor rate and efficiency variances are also calculated for ABC Company. The questions cover various topics such as cost accounting concepts, elements of cost, costing techniques, cost sheets, break-even ACCA Past Papers - ACCA Past Exams - Questions and Answers, Download PDF documents, ACCA Articles and Tests, ACCA Exam tips, Essential Guide articles Get Estimation and Costing Multiple Choice Questions (MCQ Quiz) with answers and detailed solutions. First in, first out (FIFO) is an inventory costing method that assumes the costs of the first goods purchased are the costs of the first goods sold. (May 2001, 3 marks) Answer: Cost-volume-profit analysis: It is the analysis of three variables, viz. Meaning of Transport Costing Transport Costing is a type of service costing which is employed in transport undertakings. ” Question 08: What is the private cost? Answer: A company’s private cost is the expense of producing a commodity. HORN Ch08 SM - solution. Marginal cost and average cost can differ greatly. 1. A firm has fixed costs of $200,000 and variable costs per unit of $6. All 'obs enerall ass throu hall thre production departments. In other words, it is the costing method mechanism that focuses on activities conducted for the manufacture Neon project. A company produces 500 units at a variable cost of $200 per unit. 4. Finance Strategists Open main menu. ” Thus cost sheet is a periodical statement of cost designed to show in detail the various elements of cost of goods Questions and Answers- Standard Costing and Variance Analysis. The cost of equipment insurance should be apportioned between the various production departments of a manufacturing company according to: A The value of equipment in each department B The number of different products each produces C The number of staff each employs D Their respective floor space. A job order costing system is most likely used by which of the following? a pet food manufacturer; a paper manufacturing company; an accounting firm specializing in tax returns Full syllabus notes, lecture and questions for Cost Accounting Solved Question Papers (Part - 1) - Cost Accounting - B Com - B Com - Plus excerises question with solution to help you revise complete syllabus for Cost Accounting - Best Estimating-And-Costing - Questions and Answers - Free download as PDF File (. Some key points: - A variable cost remains constant per unit as production changes, while a fixed cost does not. 00 per hour and a premium of 50% of the time saved on production in excess of standard. Annual overhead costs and 21101150 cost accounting 2 question paper - Free download as PDF File (. Cost Accounting MCQ with Answers PDF book covers basic Answer: Statement of per unit Cost and Profit Note: No. Its residual income is $36,000. The unit cost is $6 and the 11 A company has a capital employed of $200,000. ABC-1 - Activity Based Costing. Accounting Theory (ACCT 801) 10 Documents. For example: production cost/cost of goods £6 per unit; specified gross margin 40% Selling price = £10 per unit [£6 ̃ (1 - 0)]. The questions provide 2020 COST ACCOUNTING WASSCE PAST QUESTIONS AND ANSWERS. Students shared 10 documents in this course. 535,000F Factory Overhead Cost Applied Rs. Course: Cost Management (ACCT20001) 403 Documents. R. Candidates can understand the correct way to answer questions given in the CA Intermediate exam. Calculate the Fixed costs: total budget production overheads – (budget units produced x unit cost from 1above) 3. Calculate the production cost: Fixed cost from 2 above + (flexed production level x unit cost from 1 above) A2 Level Accounting - AN ACTIVITY-BASED COSTING SYSTEM 5-3 ABC’s 7 Steps Step 1: Identify the products that are the chosen cost objects. This document contains a 12 question quiz on absorption and variable costing concepts. Target costing involves specifying a product, determining the target price based on customer and market research, deducting the desired margin from the target price to get the target cost. ANSWER: D 35 Cost accounting concepts include all of the following expect _____: A. 1 Fruitolay has decided to increase the size of the store. 14 Further Readings 8. has three manufacturing activities: machine setups, machining, and inspections. It includes questions related to cost accounting concepts like costing techniques, cost sheets, marginal costing, break even analysis, budgeting and Answer: Activity-Based Costing (ABC) is the costing that begins with the tracking of activities and then the output of the product. (iv) The management has negotiated a new agreement with labour union whereby wages would be increased by 10%. 11 Answers to Check Your Progress 15. Please explain answer for question 3, job and not service costing for repair services for central heating systems. It is the total of explicit and implicit costs since a company takes both into account when deciding 12. AP × AQ SP × AQ $7.