MGT402 Quiz 1 by HB

Q1. Prime cost + Factory overhead cost is also called:

1. Total factory cost
2. All of the given options
3. Total manufacturing cost
4. Total production cost

Q2. Which of the following statement is correct for “under- application of factory overhead cost”?

1. It causes the decrease in the cost of goods sold and increased the gross profit
2. It causes the decrease in cost of goods sold and
3. It causes an increase in the cost of goods sold and
4. None of the given option

Q3. The cost that is subject to actual payment or will be paid in future is known as:

1. Implicit cost
2. Explicit cost
3. Standard cost
4. Activity based cost

Q4. The components of Factory overhead are as follows:

1. Direct material + Indirect material + Direct expences
2. Direct labor + Indirect labor + Indirect expences
3. Indirect material + Indirect labor + Other indirect costs
4. Direct material + Indirect expences + Indirect labor

Q5. Which of the following is form of inventory of services entities?

1. Finished goods inventory
2. Work in process inventory
3. Material and supplies inventory
4. Purchased goods inventory

Q6. Store incharge after receiving the material as per the goods received note, places the material at its location and makes an entry in_________ .

1. Store Ledger Card
2. Stock Ledger
3. None of the given options
4. Bin Card

Q7. Inventory turnover ratio = ? ÷ Average inventory

1. Number of days in a year
2. Net Income
3. Opening inventory
4. Cost of goods sold

Q8. Which of the following is form of inventory of trading entities?

1. Finished goods inventory
2. Purchased goods inventory
3. Material and supplies inventory
4. Work in process inventory

9. Cost of goods sold =

Rs. 300,000

10.

Beginning inventory = Rs. 30,000

11.

Inventory turnover Ratio = 8.5 times

12.

Average inventory =

Rs. 35,000

13.

Ending inventory = · a. Rs. 150,000 · b. Rs. 65,000 · c. Rs. 80,000 · d. Rs. 40,000 ✔

14.

According to IASB framework, Financial statements exhibit to its users the:

a. Financial position · b. Cash inflow and outflow analysis · c. Financial performance · d. All of the given options ✔

15.

If, Sales = Rs. 600,000

16.

Markup = 20% of cost

17.

What would be the value of Gross profit?

1. Rs. 740,000
2. Rs. 580,000
3. Rs. 200,000
4. Rs. 100,000

18.

What is entry if purchases are made on credit under perpetual inventory system?

1. Cash

Inventory · b. Accounts Payable · Inventory · c. Inventory✔ · Accounts Payable · d. Inventory · Cash

19.

Which of the following is(are) form(s) of inventory of manufacturing entities?

1. All of the given options
2. Finished goods inventory
3. Work in process inventory
4. Material and supplies inventory

20.