MGT402 Solved Online Quiz 2 by Hafiz Salman Majeed

MGT402 Online Quiz#2…8 Quizzes Attempt & Solved

By Hafiz Salman Majeed

Q1. of 15 ( Start time: 05:52:27 PM ) Total Marks: 1

The main purpose of cost accounting is to

Maximize profits Help in inventory valuation Provide information to management for decision making Aid in the fixation of selling price

Q2. of 15 ( Start time: 05:52:43 PM ) Total Marks: 1

Consider the following data for the month of May: Sales 150 units, Opening units 120 units, Closing 80 units Based on the data, production in May will have to be?

150 units 50 units 190 units 110 units

Q3. of 15 ( Start time: 05:54:08 PM ) Total Marks: 1

While transporting petrol, a little quantity will be evaporated; such kind of loss is termed as:

Normal Loss Abnormal Loss It is incremental loss It can not be abnormal loss

Q4. of 15 ( Start time: 05:54:24 PM ) Total Marks: 1

Which of the following is correct?

Units sold=Opening finished goods units + Units produced – Closing finished goods units Units Sold = Units produced + Closing finished goods units - Opening finished goods units Units sold = Sales + Average units of finished goods inventory Units sold = Sales - Average units of finished goods inventory

Q5. of 15 ( Start time: 05:54:45 PM ) Total Marks: 1

Which of the following concept is used in absorption costing?

Matching concept Cost concept Cash concept

Q6. of 15 ( Start time: 05:56:00 PM ) Total Marks: 1

Which of the following is a characteristic of process cost accounting system?

Material, Labor and Overheads are accumulated by orders Companies use this system if they process custom orders Opening and Closing stock of work in process are related in terms of completed units Only Closing stock of work in process is restated in terms of completed units

Q7. of 15 ( Start time: 05:56:30 PM ) Total Marks: 1

Net income reported under direct costing will exceed net income reported under absorption costing for a given period if:

The fixed overhead exceeds the variable overhead Production equals sales for that period Production exceeds sales for that period Sales exceed production for that period

Q8. of 15 ( Start time: 05:57:54 PM ) Total Marks: 1

If, Gross profit = Rs. 40,000 GP Margin = 20% of sales What will be the value of cost of goods sold?

Rs. 160,000 Rs. 120,000 Rs. 40,000 Rs. 90,000

Q9. of 15 ( Start time: 05:59:21 PM ) Total Marks: 1

If, Sales = Rs. 800,000 appli Markup = 25% of cost What would be the value of Gross profit?

Rs. 200,000 Rs. 160,000 Rs. 480,000 Rs. 640,000

Q10. of 15 ( Start time: 06:00:49 PM ) Total Marks: 1

Amount of net purchase can be calculated as follow

Purchase of direct material add trade discount less purchase return add carriage inward less other material handling cost Purchase of direct material less trade discount l add purchase return add carriage inward less other material handling cost Purchase of direct material less trade discount less purchase return less carriage inward add other material handling cost Purchase of direct material less trade discount less purchase return add carriage inward add other material handling cost

Q11. of 15 ( Start time: 06:01:07 PM ) Total Marks: 1

Contribution margin contributes to meet which one of the following options?

Operating cost Net Profit

Q12. of 15 ( Start time: 06:01:37 PM ) Total Marks: 1

Increase in material Inventory means:

The ending inventory is greater than opening inventory The ending inventory is less than opening inventory Both ending and opening inventories are equal Can not be determined

Q13. of 15 ( Start time: 06:01:53 PM ) Total Marks: 1

The Process of cost apportionment is carried out so that:

Cost may be controlled Cost unit gather overheads as they pass through cost centers Whole items of cost can be charged to cost centers