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1. (i) is a method of dealing with overheads which involves spreading common costs over cost centres on the basis of benefit received.

Overhead analysis Overhead apportionment Overhead allocation Overhead absorption

2. Which of the following CAS deals with the principles and methods of determining the Production and Operation Overheads?

CAS-2 CAS-3 CAS-5 CAS-10

3. Hotel Dream House is having 250 rooms of which 70% are normally occupied in summer and 40% are occupied in winter. Period of summer and winter be taken as 6 months each and normal days in a month be assumed to be 30. What is the value of total occupied room days?

31,500 room days 45,000 room days 36,000 room days 49,500 room days

4. In which of the following methods of pricing, costs lag behind the current economic values?

Replacement price method Weighted average price method FIFO price method LIFO price method

5. A Lorry starts with a load of 40 Metric Tonnes (MT) of goods from Station 'A'. It unloads 16 MT in Station 'B' and the balance goods in Station 'C'. On return trip, it reaches Station 'A' with a load of 32 MT, loaded at Station 'C'. The distance between A to B, B to C and C to A are 40 kms, 60 kms and 80 kms respectively. On the basis of above information, "Commercial MT-kilometers" are:

5,600 MT-kilometers 5,760 MT-kilometers 6,200 MT-kilometers 6,450 MT-kilometers

6. In a process 800 units are introduced during 2023-24. 5% of input is normal loss. Closing work-in-progress 60% complete is 100 units. 660 completed units are transferred to next process. Equivalent production for the period is:

900 units 744 units 540 units 720 units

7. Following information is available: Opening stock ₹4,000, Closing stock ₹6,400, Material consumed ₹31,200. What is the Inventory Turnover Ratio?

7.8 5 6 3

8. When P/V ratio is 20% and margin of safety ratio is 30%, profit is of sales.

4% 6% 8% 10%

9. In P Ltd., labour force at the beginning of July 2023 was 3,800 and at the end of July 2023 was 4,200. During the month, 50 workers left while 80 workers were discharged. 560 workers were engaged out of which only 60 were appointed in the vacancy created by the number of workers separated and the rest on account of expansion scheme. On the basis of above information, Labour Turnover Ratio of the firm by Flux Method is:

14.00% 3.25% 1.50% 8.63%

10. If an organisation has all the resources it needs for production, then the principal budget factor is most likely to be:

Cash supply Sales demand Raw materials Labour supply

11. The sum of direct labour and factory overheads is termed:

Sunk cost Opportunity cost Direct cost Conversion cost

12. RST & Co. has set up a laboratory for testing of products for compliance with standards. Salary of this laboratory staff is a part of:

Direct expenses Works overhead Quality control cost Research and development cost

13. A company requires 1,00,000 units of an item annually. The cost per unit is 10. Ordering cost is 500 per order and inventory carrying cost is 50% per unit per annum. The Economic Order Quantity (EOQ) in this case is:

4,470 units 4,472 units 6,420 units 6,472 units

14. Which of the following method is used for evaluation of equivalent production when prices are fluctuating in the market?

FIFO method LIFO method Simple average method Weighted average method

15. In the year 2023-24, X & Co. used 2,820 kg of material at a total standard cost of 11,562. The material usage variance was 123 (Favourable). In the above case, Standard Weight of Material (SQ) for the period is:

2,900 kg. 2,850 kg. 3,048 kg. 2,648 kg.

June 24 Costing Paper