Cost and Managerial Accounting Questions and Answers Part-9

1. ______________ forms part of cost of production
a) Abnormal waste
b) normal waste
c) both a & b
d) none of these

Answer: b

2. ______________ is a method of evaluating the job in terms of its money value.
a) Job analysis
b) Job evaluation
c) work measurement
d) Motion study

Answer: b

3. ______________ is the assessment of the relative worth of jobs within a company whereas ______________ is the assessment of the relative worth of man behind the job.
a) Job evaluation , merit rating
b) job analysis, job evaluation
c) job analysis, merit rating
d) none of these

Answer: a

4. Taylors differential piece rate system provides for higher rate to ______________ workers.
a) Inefficient
b) efficient
c) both a & b
d) lazy

Answer: b

5. Under Merrick's multiple piece rate system, 120% of the ordinary piece rate is given to workers whose level of performance is between ______________ of the standard output.
a) 83% and 100%
b) 100% and 120%
c) 0% and 83%
d) none of these

Answer: d

6. Basis of apportionment of stores service expenses is ______________
a) Value of materials consumed
b) units of material consumed
c) products produced
d) none of these

Answer: a

7. Machine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the ______________
a) Number of hours
b) number of products produced
c) number of workers
d) wages

Answer: a

8. Expenses incurred during production other than direct materials and direct labour are called ______________ factory expenses; those charged to production on estimated basis are called ______________
a) Actual, applied
b) applied, actual
c) indirect, direct
d) none of these

Answer: a

9. Salary paid to general manager is an item of ______________ expenses
a) Fixed
b) Variable
c) semi-variable
d) estimated

Answer: a

10. Warehousing cost is an item of
a) Office overhead
b) distribution overhead
c) material cost
d) works overhead

Answer: b