MGT 402 quaiz

Question # 1 of 15 ( Start time: 04:38:18 PM ) Total Marks: 1

Reduction of labor turnover, accidents, spoilage, waste and absenteeism are the results of which of the following wage plan?

Select correct option:

Piece rate plan

Time rate plan

Differential plan

Group bonus system







in the process costing when Cost of units transferred to the next department -II. What would be the journal entry Passed?

Select correct option:

W.I.P (Dept-II) a/c To W.I.P (Dept-I)

Finish Goods To W.I.P (Dept-I)

W.I.P (Dept-II) To FOH applied

W.I.P (Dept-I) To Payroll a/c









EOQ is the order quantity that _______ over our planning horizon

Select correct option:

Minimizes total ordering costs

Minimizes total carrying costs

Minimizes total inventory costs

Minimize the required safety stock







The appropriate journal entry to transfer the cost of completed units from the Work in Process account would involve a credit to Work in Process and a debit to which of the following accounts?

Select correct option:

Income Summary

Raw Materials Inventory

Finished Goods

Manufacturing Summary







When a budget is administered wisely, it will

Select correct option:

Discourage managers and employees

Provide a framework for performance evaluation

Eliminate coordination and communication between subunits

Discourage strategic planning







Cost accounting department prepares ___________ that helps the in preparing final accounts.

Select correct option:

Cost sheets

Cost of goods sold statement

Cost of production Report

Material requisition form







Contribution margin contributes to meet which one of the following options?

Select correct option:

Variable cost

Fixed cost

Operating cost

Net Profit



Contribution margin contributes to meet the fixed cost. Once the fixed cost has been met the incremental contribution margin is the profit.

Income Statement as per the marginal costing system is used as a Standard format of Income Statement to analyze the Cost-Volume-Profit relationship.







if, COGS = Rs. 70,000 GP Margin = 30% of sales What will be the value of Sales?

Select correct option:

Rs. 200,000

Rs. 66,667

Rs. 100,000

Rs. 62,500











Which of the following cost is used in the calculation of cost per unit?

Select correct option:

Total production cost

Cost of goods available for sales

Cost of goods manufactured

Cost of goods Sold







Annual requirement is 7800 units; consumption per week is 150 units. Unit price Rs 5, order cost Rs 10 per order. Carrying cost Rs 1 per unit and lead time is 3 week, The Economic order quantity would be:

Select correct option:

395 units

300 units

250 units

150 units







Which of the following is to be called product cost

Select correct option:

Material cost

Labor cost

FOH cost

All of the given options







The main purpose of cost accounting is to

Select correct option:

Maximize profits

Help in inventory valuation

Provide information to management for decision making

Aid in the fixation of selling price



The purpose of cost accounting is to provide information to the management. Management need to know cost per unit as a basis for valuing inventory and for decision making.





which of the following would there be a difference between financial and managerial accounting?

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Users of the information

Purpose of the information

Flexibility of practices

All of the given options







Period cost



Select correct option:

Expensed when the product is sold

Included in the cost of goods sold

Related to specific Period
Not expensed







The point at which the cost line intersects the sales line will be called:

Select correct option:

Budgeted sales

Break Even sales

Margin of safety

Contribution margin