Costing MCQs

The internal factors affecting the wage mix include:
(i) Relative worth of the job
(ii) Regional wage rates
(iii) Employer's ability to pay
(iv) Manpower market conditions

Cost-plus pricing is considered appropriate for:
(I) Product Tailoring
(II) Public Utility Pricing
(III) Refusal Pricing
(IV) Monopoly Pricing

Which of the following are the benefits of responsibility accounting?
I. It facilitates the centralization of decision-making.
II. It provides a system of closer control.
III. It measures the performance of individuals in an objective manner.
IV. It develops a sense of cost-consciousness among managers and their subordinates.

From the following two statements of Assertion (A) and Reason (R). Indicate the correct option.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

Match the following.

List-I	List-II
a. Cost control purposes	1. . . . . . . . . is a predetermined cost
b. Standard cost	2. Responsibility accounting fixes responsibility for . . . . . . . .
c. Integrates	3. Cost accounting guides future . . . . . . . .
d. Production policies	4. Budgeting system . . . . . . . . key managerial functions

"During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working.
What was the standard cost per labour hour?"

"Which of the following would explain an adverse variable production overhead efficiency variance?
1 Employees were of a lower skill level than specified in the standard
2 Unexpected idle time resulted from a series of machine breakdown
3 Poor Quality material was difficult to process"

Which of the following is correct in regard to the cost unit of a passenger transport
1. Per passenger
2. Per kilometre
Select the correct answer

"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units. "