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1. Which of the following statements best describes cost control?

It is a corrective measure. It pertains to future planning. It questions the established standard costs. It concludes once targets are met.

2. In an integrated accounting system, which account is debited when direct materials are issued?

Purchase account Stores ledger control account Factory overhead control account Work-in-progress control account

3. Product 'X' has a contribution to sales ratio of 40%. If fixed costs for 'X' are ₹ 60,000 monthly, what sales are needed to achieve a profit of ₹ 12,000?

₹ 1,87,500 ₹ 2,00,000 ₹ 1,65,000 ₹ 1,80,000

4. Which cost system is most appropriate for products that vary in materials and labor?

Batch Costing Job Costing Process Costing Operating Costing

5. Primary packaging is classified as which type of cost?

Direct material cost Production cost Selling overhead Distribution overhead

6. If PQR & Co. anticipates a short-term cash surplus, what action should they take?

Acquire new fixed assets Repay long-term loans Settle creditors early for discounts Write off preliminary expenses

7. If Product 'Z' has sales of ₹ 1,00,000, variable costs of ₹ 40,000, and fixed costs of ₹ 50,000, what is the break-even point in sales?

₹ 60,000 ₹ 50,000 ₹ 83,333 ₹ 90,000

8. Which of the following is not included in prime cost?

Cost of packing Overtime premium for workers GST on raw materials (input credit applicable) Transportation cost for materials to factory

9. For S & Co., which uses batch costing, what is the Economic Batch Quantity based on the following: Annual demand of 4,800 units, setup cost per batch of ₹ 50, manufacturing cost per unit of ₹ 100, and carrying cost per unit of 12% per annum?

100 units 200 units 300 units 400 units

10. What is the method of allocating joint costs based on the output of each joint product at the split-off point called?

Physical unit method Average cost method Sales value method Marginal cost and contribution method

11. In a process 12,000 units are introduced during a period. 5% of input is normal loss. Closing work-in-progress 60% complete is 1,500 units. 9,900 completed units are transferred to next process. Equivalent production for the period is

13,500 units 11,160 units 8,100 units 10,800 units

12. If a job is allowed 80 hours and completed in 68 hours, with a time rate of ₹ 15, what is the total earnings under the Rowan Bonus Plan?

₹ 1,020 ₹ 1,200 ₹ 1,173 ₹ 1,110

13. Given the following data: Overhead incurred of ₹ 3,00,000, overhead recovered of ₹ 2,00,000, cost of sales of ₹ 5,00,000, finished goods of ₹ 4,00,000, and work-in-progress of ₹ 3,50,000, what is the supplementary overhead rate to recover the under-absorbed overhead?

0.20 0.25 0.08 0.29

14. Which Cost Accounting Standard (CAS) pertains to the determination of average transportation costs?

CAS-5 CAS-6 CAS-9 CAS-16

15. If the standard hours for producing 100 units is 800 hours at ₹ 4 per hour, and actual hours taken are 760 at ₹ 4.50 per hour, what is the labor rate variance?

₹ 480 (Adverse) ₹ 400 (Adverse) ₹ 380 (Adverse) ₹ 100 (Favorable)

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