Accounting MCQs / Q&A

Direct cost incurred can be identified with_______________? A. Each DepartmentB. Each unit of output C. Each Month D. Each Executive Direct cost incurred can be identified with each unit of output. Direct costs (such as for…

Which of these is a Part of cash in hand? A. Postage stamps(Correct) B. B/R C. Cheque Deposited with Bank D. B/R endorsed

In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life? A. Straight-line method(Correct) B. Written down value method C. Units-of-production method D. Sum-of-the…

A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%? A. 18,387 B.…

One of the most important tools in cost planning is__________? A. Direct cost B. Cost SheetC. Budget D. Marginal Costing.

A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is A. 792 B. 820 C. 840D. 864…

If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity. A. 8,000 units B. 11,000 unitsC. 10,000 units D. 9,000 units…

Consider the following data pertaining to the production of a company for a particular month : Opening stock of raw material 11,570Closing stock of raw material 10,380Purchase of raw material during the month 1,28,450Total…

A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of `…

If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is. A. 0.65 B. 0.35 C. 1.50 D. 5.29