1. Opening work in process inventory can be calculated as under
a) FIFO and Average costing
b) LIFO and Average costing
c) FIFO and LIFO costing
d) None of given option.
2. Which of the following statement measures the financial position of the entity on particular time?
a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
d) Statement of Retained Earning
3. Which of the following is a characteristic of process cost accounting system?
a) Material, Labor and Overheads are accumulated by orders
b) Companies use this system if they process custom orders
c) Opening and Closing stock of work in process are related in terms of completed units
d) Only Closing stock of work in process is restated in terms of completed units
4. Fixed cost per unit decreases when ______________
a) Production volume increases.
b) Production volume decreases
c) Variable cost per unit decreases.
d) Variable cost per unit increases.
5. Cost of production report is a ______________
a) Financial statement
b) Production Process report
c) Order Sheet
d) None of above
6. The difference between total revenues and total variable costs is known as ______________
a) Contribution margin
b) Gross margin
c) Operating income
d) Fixed costs
7. For which one of the following industry would you recommend a Process Costing system?
a) Grain dealer
b) Television repair shop
c) Law office
8. How many units would the company have to sell to attain target profits of Rs. 600,000?
a) 88,000 units
b) 100,000 units
c) 106,668 units
d) None of given options
9. Jan 1; finished goods inventory of Manuel Company was Rs.3, 00,000. During the year Manuel’s cost
of goods sold was Rs. 19, 00,000, sales were Rs. 2, 000,000 with a 20% gross profit. Calculate cost
assigned to the December 31; finished goods inventory.
a) Rs. 4,00,000
b) Rs. 6,00,000
c) Rs. 16,00,000
d) None of the given options
10. The Process of cost apportionment is carried out so that ______________
a) Cost may be controlled
b) Cost unit gather overheads as they pass through cost centers
c) Whole items of cost can be charged to cost centers
d) Common costs are shared among cost centers