SWAYAM ALL ASSIGNMENTS PDF

Which of the following is not a goal of Cost Accounting? (a) Determining Costs (b) Setting the Selling Price (c) Controlling and Reducing Costs (d) Helping Shareholders Make Decisions Ans: d 2. A profit center is defined as: (a) A unit where the manager is responsible for generating and maxim...

Which of the following is not a goal of Cost Accounting? (a) Determining Costs (b) Setting the Selling Price (c) Controlling and Reducing Costs (d) Helping Shareholders Make Decisions Ans: d 2. A profit center is defined as: (a) A unit where the manager is responsible for generating and maximizing profits (b) A unit focused on achieving a sufficient Return on Investment\ (c) Both of the above (d) A unit that manages costs Ans: a 3. The components of a product's cost are: (a) Only material (b) Only labor (c) Only expenses (d) Material, labor, and expenses Ans: d 4. Which of the following is not a responsibility of the purchase department? (a) Receiving purchase requisitions (b) Identifying sources for material supply (c) Preparing and executing purchase orders (d) Accounting for received materials Ans: d 5. The following is not an example of holding cost: a) Storage charges b) Cost of circulating tender c) Interest on fund borrowed to purchase stock d) Costs of obsolescence stock Ans: (b) 6. A Stores Ledger is: (a) A record of material received, issued, and balance in both quantity and value (b) A record of material received, issued, and balance in terms of quantity only (c) A record of material received, issued, and balance in terms of value only (d) A record of labor attendance Ans: a 7. Re-order level is calculated as: (a) Maximum consumption x Maximum re-order period (b) Minimum consumption x Minimum re-order period (c) 1/2 of (Minimum + Maximum consumption) (d) Maximum level - Minimum level Ans: a 8. Which of the following is not an inventory valuation method? (a) FIFO (b) LIFO (c) Weighted Average (d) EOQ Ans: d 9. Which of the following departments is not part of purchasing process (a) Storage Department (b) Purchasing Department (c) Production Department (d) Sales Department Ans: (d) 10. Which of the following is not an assumption for EOQ model? a) Demand for the product is constant. b) Holding and ordering costs are constant. c) Unit price is variable. d) Order of stocks can be replenished immediately. Ans: (c) INTRODUCTION TO COST ACCOUNTING WEEK 1 – ASSIGNMENT (Each question carries 1 mark) Total: 10 marks Time allowed: 15 mins Which of the following is not a goal of Cost Accounting? (a) Determining Costs (b) Setting the Selling Price (c) Controlling and Reducing Costs (d) Helping Shareholders Make Decisions Ans: d 2. A profit center is defined as: (a) A unit where the manager is responsible for generating and maximizing profits (b) A unit focused on achieving a sufficient Return on Investment\ (c) Both of the above (d) A unit that manages costs Ans: a 3. The components of a product's cost are: (a) Only material (b) Only labor (c) Only expenses (d) Material, labor, and expenses Ans: d 4. Which of the following is not a responsibility of the purchase department? (a) Receiving purchase requisitions (b) Identifying sources for material supply (c) Preparing and executing purchase orders (d) Accounting for received materials Ans: d 5. The following is not an example of holding cost: a) Storage charges  b) Cost of circulating tender c) Interest on fund borrowed to purchase stock d) Costs of obsolescence stock Ans: (b) 6. A Stores Ledger is: (a) A record of material received, issued, and balance in both quantity and value (b) A record of material received, issued, and balance in terms of quantity only (c) A record of material received, issued, and balance in terms of value only (d) A record of labor attendance Ans: a 7. Re-order level is calculated as: (a) Maximum consumption x Maximum re-order period (b) Minimum consumption x Minimum re-order period (c) 1/2 of (Minimum + Maximum consumption) (d) Maximum level - Minimum level Ans: a 8. Which of the following is not an inventory valuation method? (a) FIFO (b) LIFO (c) Weighted Average (d) EOQ Ans: d 9. Which of the following departments is not part of purchasing process (a) Storage Department (b) Purchasing Department (c) Production Department (d) Sales Department Ans: (d) 10. Which of the following is not an assumption for EOQ model? a) Demand for the product is constant. b) Holding and ordering costs are constant. c) Unit price is variable.  d) Order of stocks can be replenished immediately. Ans: (c) 1. Which method can help in reducing labor turnover? (a) Extending work hours (b) Providing competitive salaries (c) Cutting back on training sessions (d) Decreasing employee benefits Answer: (b) 2. What is the main goal of a time study? (a) To lower labor expenses (b) To assess the time needed for each task (c) To boost production (d) To appraise employee performance Answer: (b) 3. Which of the following is classified as a factory overhead cost? (a) Direct materials (b) Indirect labor (c) Direct labor (d) Sales expenses Answer: (b) 4. What is the widely used method to allocate overhead costs? (a) Direct allocation (b) Absorption costing (c) Marginal costing (d) Cost apportionment on some agreed basis. Answer: (d) 5. Which overhead cost would include utility bills for a manufacturing facility? (a) Administrative overhead (b) Factory overhead (c) Sales overhead (d) Office overhead Answer: (b) 6. In overhead allocation, what does 'predetermined overhead rate' mean? (a) Actual overhead expenses (b) Estimated overhead rate before production starts (c) Overhead costs distributed after production (d) None of the above Answer: (b) 7. Which element is generally found in a cost sheet? (a) Sales price (b) Direct materials (c) Company income (d) Interest costs Answer: (b) 8. What is the purpose of creating a cost sheet? (a) To set the selling price (b) To predict future costs (c) To examine the cost components of a product (d) To log daily transactions Answer: (c) 9. Which of the following costs is usually excluded from a cost sheet? (a) Direct labor (b) Depreciation (c) Indirect materials (d) Marketing expenses Answer: (d) 10. What does 'cost per unit' mean in a cost sheet? (a) Total production cost (b) Average cost to manufacture one unit (c) Selling price per unit (d) Total revenue divided by total units produced Answer: (b) Week 3 Assignment Question 1: Which of the following industries is most likely to utilize job costing? A. Cement production B. Oil processing C. Custom furniture manufacturing D. Power generation Answer: C. Custom furniture manufacturing Question 2: In the context of operating costing for transport services, what is typically used as the unit of cost? A. Cost per machine hour B. Cost per item produced C. Cost per ton-kilometer D. Cost per service hour Answer: C. Cost per ton-kilometer Question 3: Which document in job costing authorizes work and includes detailed production information? A. Job cost sheet B. Bill of materials C. Production order D. Materials requisition note Answer: C. Production order Question 4: In contract costing, what term is used for the profit calculated by subtracting total costs from the total revenue of a contract? A. Gross Profit B. Net Profit C. Notional Profit D. Operating Profit Answer: C. Notional Profit Question 5: Which of the following costs is classified as a fixed or standing charge in operating costing for a transport organization? A. Fuel expenses B. Driver wages per trip C. Vehicle depreciation D. Repair and maintenance costs Answer: C. Vehicle depreciation Question 6: What is the primary reason for including an escalation clause in a contract? A. To ensure timely completion of the project B. To adjust the contract price for fluctuations in material or labor costs C. To cover the cost of rectifying defective work D. To penalize for delayed completion Answer: B. To adjust the contract price for fluctuations in material or labor costs Question 7: Which of the following describes 'Retention Money' in contract costing? A. An advance payment made before work starts B. Money withheld from payments until satisfactory contract completion C. Additional charges for extra work performed D. A refundable deposit paid by the contractee Answer: B. Money withheld from payments until satisfactory contract completion Question 8: Which of the following is NOT a key difference between job costing and contract costing? A. The number of jobs or contracts handled simultaneously B. The extent of direct allocation of expenses to the account C. The types of industries where they are applied D. The fundamental principles of costing Answer: D. The fundamental principles of costing Question 9: Which of the following is an advantage of job costing? A. Simplifies clerical work by reducing the need for detailed tracking of costs B. Provides cost information for each job while the job is still in progress C. Eliminates the need for budgetary control of overhead costs D. Ensures uniformity in manufacturing processes for all products Answer: B. Provides cost information for each job while the job is still in progress Question 10: In contract costing, what is the significance of 'Work Certified'? A. It represents the total cost incurred by the contractor B. It denotes the revenue recognized for work completed C. It is the portion of the contract completed and approved by the client D. It accounts for the total profit earned from the contract Answer: C. It is the portion of the contract completed and approved by the client Which of the following statements accurately describes Contract Costing? It is a method used for mass production, similar to process costing. It is employed in businesses involved in construction or building projects. It only considers indirect costs when calculating the total cost. It is the same as job costing without any changes. Yes, the answer is correct. Score: 1 Accepted Answers: It is employed in businesses involved in construction or building projects. 1 point What is the purpose of retention money in Contract Costing? To cover the costs of defective work. To ensure the contractor meets all conditions of the contract. To pay for materials supplied by the contractee. To account for future decreases in the price of raw materials. Yes, the answer is correct. Score: 1  Accepted Answers: To ensure the contractor meets all conditions of the contract. 1 point Process costing is best suited for which type of industries? Industries that produce customized products. Industries with continuous and homogeneous production. Service industries like consulting. Industries involved in large-scale construction projects. Yes, the answer is correct. Score: 1 Accepted Answers: Industries with continuous and homogeneous production. 1 point In process costing, the cost per unit is determined by: Dividing total process costs by the number of units produced. Summing the costs of all completed jobs. Allocating costs based on direct labor hours. Adding up the costs of each process and dividing by the number of processes. Yes, the answer is correct. Score: 1 Accepted Answers: Dividing total process costs by the number of units produced. 1 point Which of the following is not a characteristic of process costing? Avoidable and unavoidable losses are accounted for at different stages.  The cost per unit is calculated at the end of each period. Each job is treated as a separate entity. Finished goods of one process become raw materials for the next process. Yes, the answer is correct. Score: 1 Accepted Answers: Each job is treated as a separate entity. 1 point Which industry is least likely to use process costing? Textile industry Oil refining industry Food products industry Custom furniture manufacturing Yes, the answer is correct. Score: 1 Accepted Answers: Custom furniture manufacturing 1 point In Cost-Volume-Profit (CVP) analysis, the break-even point is defined as: The sales level at which total revenue equals total costs. The sales level where the company makes the highest profit. The point where fixed costs are fully covered by sales revenue. The point where variable costs equal total costs. Yes, the answer is correct.  Score: 1 Accepted Answers: The sales level at which total revenue equals total costs. 1 point What is the main objective of Cost-Volume-Profit analysis? To determine the optimal product mix. To analyze the impact of cost and volume changes on profits. To accurately allocate overhead costs. To calculate the exact production costs for each unit. Yes, the answer is correct. Score: 1 Accepted Answers: To analyze the impact of cost and volume changes on profits. 1 point Which of the following is not an assumption of Cost-Volume-Profit analysis? Costs can be divided into fixed and variable components. The sales mix remains constant. Total fixed costs remain constant within the relevant range. Variable costs per unit change with the level of production. Yes, the answer is correct. Score: 1 Accepted Answers: Variable costs per unit change with the level of production. 1 point In CVP analysis, what does the contribution margin represent?  The portion of sales revenue that is in excess of the variable costs. The total variable costs of production. The profit earned from each unit sold. The sales revenue minus fixed costs. Yes, the answer is correct. Score: 1 Accepted Answers: The portion of sales revenue that is in excess of the variable costs. Which cost type stays the same no matter the production or sales level? Direct Costs Indirect Costs Fixed Costs Variable Costs Yes, the answer is correct. Score: 1 Accepted Answers: Fixed Costs 1 point Which analysis identifies the sales volume where total revenue matches total costs? Cost Behavior Analysis Budgeting Break-Even Analysis Activity-Based Costing  Yes, the answer is correct. Score: 1 Accepted Answers: Break-Even Analysis 1 point What does Margin of Safety measure? Total fixed costs of a business Surplus of actual sales over break-even sales Total variable costs of a business Gap between total revenue and total costs Yes, the answer is correct. Score: 1 Accepted Answers: Surplus of actual sales over break-even sales 1 point Which budget is used to manage liquidity for operations and investments? Operational Budget Capital Budget Cash Budget Standard Cost Budget Yes, the answer is correct. Score: 1 Accepted Answers: Cash Budget 1 point Which statement is true? At BEP, Contribution is equal to fixed cost At BEP, Contribution is greater than fixed cost At BEP, Contribution is lower than fixed cost None of the above Yes, the answer is correct. Score: 1 Accepted Answers: At BEP, Contribution is equal to fixed cost 1 point Which costs are ignored in relevant costing for decisions? Variable Costs Fixed Costs Relevant Costs Sunk Costs Yes, the answer is correct. Score: 1 Accepted Answers: Sunk Costs 1 point What does the Contribution Margin indicate in CVP analysis? The excess of total revenue over total costs. The gap between sales revenue and variable costs.  The overall fixed costs of a business. The profit from each unit sold. Yes, the answer is correct. Score: 1 Accepted Answers: The gap between sales revenue and variable costs. 1 point What is the main goal of Break-Even Analysis in CVP? To set the product price. To estimate maximum profit. To identify the sales volume where total revenues equal total costs. To determine fixed and variable production costs. Yes, the answer is correct. Score: 1 Accepted Answers: To identify the sales volume where total revenues equal total costs. 1 point Which change would lower the break-even point if all other factors remain the same? Increasing variable costs per unit. Increasing fixed costs. Lowering the selling price per unit. Reducing variable costs per unit. Yes, the answer is correct. Score: 1  Accepted Answers: Reducing variable costs per unit. 1 point What is the effect of increased fixed costs on the contribution margin ratio in CVP? It raises the contribution margin ratio. It lowers the contribution margin ratio. It does not affect the contribution margin ratio. It raises total variable costs. Yes, the answer is correct. Score: 1 Accepted Answers: It does not affect the contribution margin ratio. What is a primary feature of a budget according to the document? It must be expressed in financial or quantitative terms. It must be flexible and adaptable. It should only be prepared during the fiscal year. It must focus solely on production metrics. Yes, the answer is correct. Score: 1 Accepted Answers: It must be expressed in financial or quantitative terms. 1 point What is one of the main objectives of a budget?  To ensure all employees receive bonuses. To provide a blueprint for a desired plan of action. To minimize the need for sales forecasting. To increase the complexity of managerial decisions. Yes, the answer is correct. Score: 1 Accepted Answers: To provide a blueprint for a desired plan of action. 1 point Which is NOT listed as an essential element of a budget? Clear objectives and reasonable targets. A high degree of financial flexibility. Organisational structure definition. Periodical monitoring and analysis of variances. Yes, the answer is correct. Score: 1 Accepted Answers: A high degree of financial flexibility. 1 point What is one limitation of budgets mentioned in the document? They guarantee future profits. They eliminate the need for managerial oversight. They may create a sense of rigidity. They are always accurate.  Yes, the answer is correct. Score: 1 Accepted Answers: They may create a sense of rigidity. 1 point Budgets classified on the basis of time include which of the following? Capital and Revenue Budgets. Functional and Operational Budgets. Long-term and Short-term Budgets. Fixed and Flexible Budgets. Yes, the answer is correct. Score: 1 Accepted Answers: Long-term and Short-term Budgets. 1 point Which of the following is a typical cash inflow included in a cash budget? Depreciation expenses. Payment to suppliers. Purchase of fixed assets. Collection from debtors. Yes, the answer is correct. Score: 1 Accepted Answers: Collection from debtors. 1 point What is the main purpose of an operational budget? Planning long-term investments Guiding daily operations Managing cash flow Pricing products Yes, the answer is correct. Score: 1 Accepted Answers: Guiding daily operations 1 point What is considered in make-or-buy decisions? Only fixed costs Only variable costs Relevant costs and qualitative factors Irrelevant costs Yes, the answer is correct. Score: 1 Accepted Answers: Relevant costs and qualitative factors 1 point Opportunity cost may be defined as Opportunity foregone Future cost  Fixed cost Variable cost Yes, the answer is correct. Score: 1 Accepted Answers: Opportunity foregone 1 point What is the goal of variance analysis in cost accounting? Setting standard costs Identifying and analyzing cost deviations Assigning overhead costs Forecasting cash flows Yes, the answer is correct. Score: 1 Accepted Answers: Identifying and analyzing cost deviations When a company aims to create a factory overhead budget where the projected costs are based directly on the anticipated activity levels, which type of budget should the company develop? Flexible budget Fixed budget Master budget R & D budget None of the above No, the answer is incorrect.  Score: 0 Accepted Answers: Flexible budget 1 point Which budget type allows for the classification of fixed and variable costs? Capital expenditure budget Flexible budget Cash budget Raw materials budget All of the above No, the answer is incorrect. Score: 0 Accepted Answers: Flexible budget 1 point The distinction between fixed costs and variable costs becomes important when preparing which type of budget? Master Budget Capital Budget Cash Budget Flexible Budget No, the answer is incorrect. Score: 0 Accepted Answers: Flexible Budget 1 point A flexible budget necessitates a thorough examination of which types of expenses? Fixed, semi-fixed, and variable costs Previous and current costs Overheads, selling, and administrative costs None of the above No, the answer is incorrect. Score: 0 Accepted Answers: Fixed, semi-fixed, and variable costs 1 point Which type of standard is considered practically unattainable due to its high expectations? Normal Standard Basic Standard Current Standard Ideal Standard No, the answer is incorrect. Score: 0 Accepted Answers: Ideal Standard 1 point What is a key feature of a Basic Standard in cost accounting? It reflects the management's current cost expectations. It is chosen for its constancy over a long period.  It requires frequent updates to remain accurate. It is used primarily for short-term cost forecasting. No, the answer is incorrect. Score: 0 Accepted Answers: It is chosen for its constancy over a long period. 1 point How does Standard Costing contribute to managerial planning? By providing real-time data on actual costs. By simplifying the pricing of inter-departmental transfers. By assisting in the standardization of products and methods. By eliminating the need for budgetary planning. No, the answer is incorrect. Score: 0 Accepted Answers: By assisting in the standardization of products and methods. 1 point What is the main objective of Standard Costs in cost accounting? To determine what costs will be. To predict future sales. To establish what costs should be. To record actual past costs. No, the answer is incorrect. Score: 0  Accepted Answers: To establish what costs should be. 1 point Which of the following items is typically included in a cash budget? Depreciation expense Interest income Inventory purchases All of the above No, the answer is incorrect. Score: 0 Accepted Answers: Interest income 1 point If a company has an opening cash balance of INR10,000, expects cash receipts of INR15,000, and has cash disbursements of INR20,000, what will be the closing cash balance? INR5,000 INR15,000 INR10,000 INR25,000 No, the answer is incorrect. Score: 0 Accepted Answers: INR5,000 What is a Direct Materials Price Variance?  The difference between actual and standard price per unit of material multiplied by the actual quantity used. The difference between the standard and actual quantity of material used multiplied by the standard price. The difference between the actual cost and the budgeted cost of materials. The difference between the standard cost and actual cost of materials. Yes, the answer is correct. Score: 1 Accepted Answers: The difference between actual and standard price per unit of material multiplied by the actual quantity used. 1 point Which of the following is NOT a cause of Material Price Variance? Change in the purchase price of material Variation in the usage of materials Failure to take advantage of discounts Rush orders to meet supply shortages Yes, the answer is correct. Score: 1 Accepted Answers: Variation in the usage of materials 1 point How is Direct Materials Usage Variance calculated? (Actual Quantity x Standard Price) minus (Standard Quantity x Actual Price) (Actual Quantity used x Standard Price) minus (Actual Price x Actual Quantity) (Standard Quantity x Standard Price) minus (Actual Quantity x Actual Price)  (Standard Quantity for actual output x Standard Price) minus (Standard Price x Actual Quantity) No, the answer is incorrect. Score: 0 Accepted Answers: (Standard Quantity for actual output x Standard Price) minus (Standard Price x Actual Quantity) 1 point Which variance represents the difference between the actual quantity of material used and the standard proportion, priced at standard price? Direct Materials Price Variance Direct Materials Mix Variance Direct Materials Yield Variance Direct Materials Cost Variance No, the answer is incorrect. Score: 0 Accepted Answers: Direct Materials Mix Variance 1 point What is the cause of a Direct Labour Rate Variance? Lack of proper supervision Machine breakdowns Delays due to waiting for materials Employment of workers with different pay grades Yes, the answer is correct. Score: 1 Accepted Answers:  Employment of workers with different pay grades 1 point Which formula represents the calculation of Idle Time Variance? (Standard Rate x Actual Hours Paid) minus (Standard Rate x Actual Hours Worked) (Actual Rate x Actual Hours) minus (Standard Rate x Actual Hours) (Standard Rate x Standard Hours) minus (Actual Rate x Actual Hours) (Standard Rate x Idle Hours) minus (Actual Rate x Idle Hours) No, the answer is incorrect. Score: 0 Accepted Answers: (Standard Rate x Actual Hours Paid) minus (Standard Rate x Actual Hours Worked) 1 point Which type of variance is always adverse? Material Usage Variance Labour Efficiency Variance Idle Time Variance Direct Labour Rate Variance Yes, the answer is correct. Score: 1 Accepted Answers: Idle Time Variance 1 point What is the formula for Direct Labour Yield Variance? (Standard Cost Per Unit x Standard Output for Actual Mix) minus (Actual Output) (Standard Hours x Standard Rate) minus (Actual Hours x Actual Rate)  (Standard Output for Actual Mix x Standard Cost Per Unit) minus (Actual Output x Actual Cost Per Unit) (Actual Output x Standard Cost Per Unit) minus (Standard Output x Standard Cost Per Unit) No, the answer is incorrect. Score: 0 Accepted Answers: (Standard Cost Per Unit x Standard Output for Actual Mix) minus (Actual Output) 1 point Calculate the Material Cost Variance given: Standard quantity = 10 kg, Standard price = $4/kg Actual quantity = 12 kg, Actual price = $4.50/kg INR12 (A) INR14 (A) INR8 (F) INR10 (A) Yes, the answer is correct. Score: 1 Accepted Answers: INR14 (A) 1 point Given: Standard hours for actual production = 500 hours, Actual hours worked = 550 hours Standard rate = INR20/hour Calculate the Direct Labour Efficiency Variance. INR 1,200 (A) INR 1,100 (A)  INR 1,000 (F) INR 1,000 (A) Yes, the answer is correct. Score: 1 Accepted Answers: INR 1,000 (A)