Final Exam. M C.com II Part 2 Solve the Following MCQs(1.5 mar s each!

Q"estion#1 When material prices fluctuate widely, the method of pricing that gives absurd results is (a)Simple average price ( b) Weightd average price (c) Moving average price (d) Inflated Price

Q"estion#2 When prices fluctuate widely, the method that will smooth out the effect of fluctuations is (a) Simple average Q"estion#$ "#pected annual usage of a particular raw material is $,%%,%%% units and the economic order &uantity is '%,%%% units (he invoice cost of each unit is )S*+%% and the cost to place one order is )S*,%* (he average inventory is (a)',%%%,%%%units (b) +,%%% -nits (c) '%*%%%units (d) .,+%%units (b)Weighted average (c) LI ! (d) I !

Q"estion#% /ones, Industries uses process costing system* In !ctober, the finishing department had 0%,%%% ($%1 as to conversion) units in beginning wor23in3process, 4+,%%% (4%1 as to conversion) units in ending inventory and had 5+,%%% units transferred in from the previous department* Material is added at the end of the process and conversion costs are added uniformly throughout the process* &e'"ire(# If /ones uses weighted average, what are the e&uivalent units of production for direct material and conversion costs6 Material '$+,%%% units 7onversion cost 4+,%%% units Material '$+,%%% units 7onversion cost 5,,%%% units Material '$+,%%% units 7onversion cost ',,%%% units Material '$+,%%% units 7onversion cost ,%,%%% units Q"estion )o# 5 8verage consumption # "mergency time is a formula for the calculation of9 Lead time )e3order level Ma#imum consumption :anger level Q"estion )o# * "!; is a point where9 !rdering cost is e&ual to carrying cost !rdering cost is higher than carrying cost !rdering cost is lesser than the carrying cost (otal cost is ma#imum Q"estion )o# + When closing stoc2 is over valuate, what would its effect on profit6 7an not determined with given statement It will Increase the profit It will decrease the profit <o effect on profit Q"estion )o#, 8 firm sells bags for )s* '4 each* (he variable cost for each unit is )s* ,* What is the contribution margin per unit6 )s* = )s* '$ )s* '4 )s* , Q"estion )o#>eller 7o* sells a single product for )s* $, per unit* If variable costs are =+1 of sales and fi#ed costs total )s* 5,,%%, the brea23even point will be9 '+,%.. units ',,$%% units +05 units ',%%% units Q"estion )o#1. What would be the margin of safety ratio based on the following information6

Sales price @ariable cost

? )s* '%% per unit ? )s* $+ per unit ? )s* +% per unit 00*0001 ==*===1 .+1

i#ed cost $+1

Q"estion )o#11 8hmed 7orporation has sales of )s* +%%,%%% for the period* (he selling e#penses are estimated as '$1 of sales* (he gross profit for the period is amounting to )s* '+%,%%%* 7alculate the amount of selling e#penses for the period6 )s* =%,%%% )s* 4+,%%% )s* 5%,%%% )s* $'%,%%% Q"estion#12 Which of the following statement is /&0E about the relevant cost6 It is a sun2 cost It is an opportunity cost It do not affect the decision ma2ing process 8ll costs are relevant Q"estion )o#1$ Which of the given will )1/ be included for the calculation of e&uivalent units of material under weighted average costing method6 !pening wor2 in process units 7losing wor2 in process units -nit completed and transferred out <one of the given options Q"estion#1% 8A7 7ompany ma2es a single product which it sells for )s* $% per unit* i#ed costs are )s* .+,%%% per month and product has a profitBvolume ratio of 4%1* In that period actual sales were )s* $$+,%%%* &e'"ire(# 7alculate 8A7 7ompany Area2 "ven point in )s )s*',., +%% )s*+=$, +%% )s* ',+%%,%%% <one of the given options Q"estion#15 8n average cost is also 2nown as9 @ariable cost -nit cost (otal cost i#ed cost Q"estion#1* Which of the following is <!( a relevant cost to decision ma2ing6 !pportunity costs )elevant benefits 8voidable costs Sun2 costs Q"estion )o#1+ Audgeted actory overhead at two activity levels is as follows for the period* 8ctivity level '%,%%% Cours +%,%%% Cours Audgeted factory overhead )s* 4%,%%% )s* ,%,%%% )s* $*%% per hour

Low Cigh

)e&uired9 Identify variable rate with the help of above mentioned data* )s* 4*%% per hour )s* '*=% per hour )s* '*%% per hour Q"estion# 1, :etails of the process for the last period are as follows9 Put into process Materials Labor Production overheads +,%%% 2g )s* $,+%% )s*.%% $%%1 of labor

<ormal losses are '%1 of input in the process* (he out put for the period was 4,$%% >g from the process* (here was no opening and closing Wor23 in3 process* What were the units of abnormal loss6

500 units

300 units

200 units

100 units

Q"estion#1Budgeted fixed FOH is Rs.40, 000 & Budgeted variable FOH Rs. 30,000 & variable rate is Rs. .00 !er "#ur. Required: $dentif% t"e a&#unt #f Budgeted Fa't#r% #ver"ead. Rs. 10,000 Rs. 5, 000 Rs. (0,000 Rs. 3,(50

Question 20 $&!uted '#st is als# 'alled as

)x!li'it '#st

$&!li'it '#st

Fir& '#st

*eri#d '#st

The University of Poonch

Rawalakot Azad Kash ir
(Faculty of Management Sciences)

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Final )xa& 4uesti#n 2 4uesti#n 3 +dv.,#st +''#unting -ar.s 50 /i&e.2 "rs 0ate123232013