MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 11 Mcqs, each offering curated multiple-choice questions to sharpen your Master of Commerce (MDotcom) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The firm s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labour hours, at a cost of 1,68,000, for 25,000 units of finished product that require 1 hour of direct labour each, at standard. What is the standard rate per direct-labour hour? |
| A. | 7.20 |
| B. | 6.80 |
| C. | 7.00 |
| D. | Cannot be determined from the information given |
| Answer» E. | |
| 2. |
To produce a particular batch of product, Falcon Corporation paid its workers 12.00 per hour for 4,000 hours of work. The standards for the quantity of work represented by the batch were 12.50 per hour and 4,400 hours. What was the labour efficiency variance? |
| A. | 2,000.00 favourable |
| B. | 5,000.00 favourable |
| C. | 5,000.00 unfavourable |
| D. | None of these |
| Answer» C. 5,000.00 unfavourable | |
| 3. |
The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units of finished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance? |
| A. | 20,000 unfavourable |
| B. | 25,000 favourable |
| C. | 25,000 unfavourable |
| D. | Cannot be determined from the information provided |
| Answer» D. Cannot be determined from the information provided | |
| 4. |
Purchased materials are added in the second department of a three-department process; this increases the number of units produced in the second department and would always: |
| A. | Change the direct labour cost percentage in the ending work-in-process inventory. |
| B. | Cause no adjustment to the unit cost transferred in from the first department. |
| C. | Increase total units costs. |
| D. | Decrease total ending work-in-process inventory. |
| Answer» C. Increase total units costs. | |
| 5. |
Purchased materials are added in the second department of a three-department process, this order does not increase the number of units produced in the second department and would: |
| A. | Not change the amount transferred to the next department. |
| B. | Decrease total work in process inventory. |
| C. | Increase the factory overhead portion of the ending work-in-process inventory. |
| D. | Increase total unit cost. |
| Answer» E. | |
| 6. |
Mines `A and `B are at a distance of 10 kms and 15 kms from the factory. The cost per tonne-km in case of mine A is Rs. 3 while it is R. 2.5 in case of mine B. The factory should procure coal from------------ |
| A. | Mine A only |
| B. | Mine B only |
| C. | Both from mines A and B in the ration of 3: 2 |
| D. | Can t decide. |
| Answer» B. Mine B only | |
| 7. |
Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrap value. If output is 40 units the amount of abnormal loss would be----------- |
| A. | Rs. 80 |
| B. | Rs. 10 |
| C. | Rs. 8 |
| D. | Rs. 9 |
| Answer» C. Rs. 8 | |
| 8. |
During July actual labour costs amounted to 19,800, the standard rate of pay was 4.50 per hour and the labour rate variance amounted to 225 adverse. The actual hours worked were: |
| A. | 4,400 |
| B. | 1,012 |
| C. | 4,350 |
| D. | 3,450 |
| Answer» B. 1,012 | |
| 9. |
Which of the following management accounting systems places a very strong emphasis on incorporating external data into the preparation of management reports? |
| A. | Sales variance analysis |
| B. | Activity based management |
| C. | Strategic management accounting |
| D. | Flexible budgeting |
| Answer» D. Flexible budgeting | |
| 10. |
What term best describes the use of both financial and non-financial measures in assessing whether an entity has achieved its objectives? |
| A. | balanced scorecard |
| B. | Benchmarking |
| C. | performance measurement |
| D. | target setting |
| Answer» D. target setting | |
| 11. |
In what circumstances might a company be prepared to price a special contract at less than its relevant cost? |
| A. | When sales of other products will not increase |
| B. | When the company is operating at almost full capacity |
| C. | In the expectation that additional profitable orders will be placed by the same customer |
| D. | When there are signs of improved market conditions |
| Answer» D. When there are signs of improved market conditions | |