Question # 1

The primary objective of cost accounting is to

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Control cost

Calculate profit

Avoid cost

All of above

In job order costing system, each job is assigned a job cost

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Unit

Center

Driver

Sheet

Lead time is the time between the time on item reaches --------------- and ---------- of

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Order level, dispatch of material

Order level, maximum level

Maximum level, minimum level

Order level, actual receipt

If applied factory overhead is less than actual factory overhead, it is called

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Applied F.o.H

Over applied F.o.H

Under-applied F.o.H

None of above

Outstanding expenses are also known as

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Prepared expenses

Accrued expenses

Un-earned income

None

Dishonor of the bill occurs when:

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The drawer refuse to pay

The acceptor refuses to meet the bill on due date

The endorsee accepts to meet the bill

None

Doubtful debt are:

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Definite loss to the business

Definite profit to the business

Expected loss to the business

Expected profit to the business

How many of grace are given?

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5

4

3

2

Sales prices is calculated as follow:-

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Cost + operating expense

Direct material + Direct labour + F.o.H

Cost + operating expenses + profit

None of above

The cost flow must match the

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Output

Outflow

Inflow

Workflow

How many types of inventories are in cost of goods sold statement?

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1

2

3

4

Cash or goods taken away by owner for personal use from business are known as:

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Capital

Drawings

Revenue

Expense

Work in process opening and closing inventory includes:-

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Arterial in process

Labour in process

F.o.H in process

All of the above

During period of rising material prices, ----------- method results in profit inflation

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LIFO

FIFO

Weighted average

All of the above

In bill of exchange, the party who accepts a bill is known as:

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Drawer

Drawee

Payee

Third party

The price at which assets will be sold at the end of its useful life is known as:

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Scrap value

Residual value

Written down value

All of the above

What are accrued expenses?

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The expenses that have been incurred during current year and paid till the end of current year

The expenses that have been incurred previous year and paid in the current year

The expenses that have been incurred during current year and not paid till the end of current year

The expenses that have been incurred previous year and not paid till the end of current year

Excess of assets over liabilities is known as:

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Capital fund

Accumulated fund

Surplus fund

All options are correct

Accounting is the

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Art

Science

Both

None

According to possible for an event or transaction which is not measurable in terms of money

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True

False

May be

None

The bills which are drawn and accepted against the sale and purchase of goods on credits are called

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Trade bills

Bill of exchange

In-land bills

Foreign bills

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