TQM revolves around the concept of:

Providing adequate back up support once the product leaves the factory

Recruiting the best managers in their field

Making the best quality products regardless of the cost

Getting things right first time

An adverse material usage variance together with a favourable materials price variance could suggest that:

We are paying higher prices for our materials than expected

We are paying the same for our materials but we are using more than expected

We are paying higher prices for our materials than expected

We are paying less for our materials than expected but we are using more materials

We are using less material than expected but in total we are paying more than we should

Prime cost can be defined as:

The total costs of operating the production department where the product is made

The total costs of manufacturing a product

The total direct costs of manufacturing a product

The total costs of operating the production department where the product is made

The cost of the first stage of the manufacture of a product

Which of the following pair is odd one?

Transport undertaking – Operating costing

Brick manufacturing – Process costing

Transport undertaking – Operating costing

Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of the following is most likely to be the value at which is debited to the process?

At the same price as it sold externally

At the cost attached to abnormal losses

When carrying out variance analysis ideally, we should:

Look at adverse variances that are over a predetermined amount

Look at controllable adverse and favourable variances that are over a predetermined amount

Look at adverse variances that are over a predetermined amount

Look at all adverse and favourable variances that are over a predetermined amount

Purchased materials are added in the second department of a three-department process; thisincreases the number of units produced in the second department and would always:

Change the direct labour cost percentage in the ending work-in-process inventory.

Cause no adjustment to the unit cost transferred in from the first department.

Decrease total ending work-in-process inventory.

The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance?

Cannot be determined from the information provided

Direct labour costs will include:

All labour costs attributable to a product

Direct labour costs plus any bonuses and overtime premiums

Direct labour costs plus any bonuses

Total direct labour hours at the normal hourly rate of pay

All labour costs attributable to a product

Which of the following is NOT a criticism of a standard-costing system?

It can cause dysfunctional behaviour in a JIT/FMS environment

It is more expensive than other systems

Variances calculated under standard-costing come too late to be useful

It can cause dysfunctional behaviour in a JIT/FMS environment

Traditional cost variances are not tied to specific product line

Cost Accounting is applied to:

Large business enterprises only

Small business enterprises only

Manufacturing and services concerns

Responsibility accounting aims to:

Ensure that a manager is punished if things go wrong

Ensure that costs become the responsibility of a specific manager

Ensure that a manager is punished if things go wrong

Reduce the costs that a department incurs

Allocate costs to all areas of a business

The firm’s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labourhours, 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?

Cannot be determined from the information given

2331 + Mcqs in Management in UGC-NET Page 43 McqOptions

2101.	---------- means ‘Change for better’.
A.	Kanban
B.	Kaizen
C.	Sigma
D.	Seitan
Answer» C. Sigma

Discussion

2102.	TQM revolves around the concept of:
A.	Providing adequate back up support once the product leaves the factory
B.	Recruiting the best managers in their field
C.	Making the best quality products regardless of the cost
D.	Getting things right first time
Answer» E.

Discussion

2103.	An adverse material usage variance together with a favourable materials price variance could suggest that:
A.	We are paying the same for our materials but we are using more than expected
B.	We are paying higher prices for our materials than expected
C.	We are paying less for our materials than expected but we are using more materials
D.	We are using less material than expected but in total we are paying more than we should
Answer» B. We are paying higher prices for our materials than expected

Discussion

2104.	For an educational institute the right method of costing is------------
A.	Output costing
B.	Job costing
C.	Operating costing
D.	Process costing
Answer» C. Operating costing

Discussion

2105.	Prime cost can be defined as:
A.	The total costs of manufacturing a product
B.	The total direct costs of manufacturing a product
C.	The total costs of operating the production department where the product is made
D.	The cost of the first stage of the manufacture of a product
Answer» C. The total costs of operating the production department where the product is made

Discussion

2106.	Which of the following pair is odd one?
A.	Construction-Contract costing
B.	Ship-building-Job costing
C.	Brick manufacturing – Process costing
D.	Transport undertaking – Operating costing
Answer» D. Transport undertaking – Operating costing

Discussion

2107.	Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of the following is most likely to be the value at which is debited to the process?
A.	At the same price as it sold externally
B.	At the cost of normal losses.
C.	At the cost attached to abnormal losses
D.	Nil value.
Answer» B. At the cost of normal losses.

Discussion

2108.	When carrying out variance analysis ideally, we should:
A.	Look at controllable adverse and favourable variances that are over a predetermined amount
B.	Look at adverse variances that are over a predetermined amount
C.	Look at all variances
D.	Look at all adverse and favourable variances that are over a predetermined amount
Answer» B. Look at adverse variances that are over a predetermined amount

Discussion

2109.	In August actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit. Actual output was 1,075 units. If the standard material cost of each product is 25 the material efficiency variance will be:
A.	3,250 favourable
B.	1,375 favourable
C.	3,250 adverse
D.	1,375 adverse
Answer» D. 1,375 adverse

Discussion

2110.	----------- are those products which are manufactured in different varieties by the same industry.
A.	Joint products
B.	By products
C.	Co-products
D.	All of these
Answer» D. All of these

Discussion

2111.	------------ is regarded as ‘Price-led costing’.
A.	Activity based costing
B.	Target costing
C.	Kaizen costing
D.	Back flush costing
Answer» C. Kaizen costing

Discussion

2112.	----------- in Activity Based Costing is like ‘cost centre’ in traditional costing.
A.	Activity Cost Driver
B.	Cost object
C.	Cost pool
D.	Resource Cost driver.
Answer» D. Resource Cost driver.

Discussion

2113.	For hotels the best method of costing is----------
A.	Single or output
B.	Contract costing
C.	Process costing
D.	Operating costing
Answer» E.

Discussion

2114.	Electricity generating company should employ----------
A.	Unit costing
B.	Process costing
C.	Operating costing
D.	Multiple costing
Answer» D. Multiple costing

Discussion

2115.	Purchased materials are added in the second department of a three-department process; thisincreases 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.

Discussion

2116.	----------- variance is always adverse.
A.	Material yield variance
B.	Labour rate variance
C.	Idle time variance
D.	None of these
Answer» D. None of these

Discussion

2117.	The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished 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

Discussion

2118.	Direct labour costs will include:
A.	Direct labour costs plus any bonuses and overtime premiums
B.	Direct labour costs plus any bonuses
C.	Total direct labour hours at the normal hourly rate of pay
D.	All labour costs attributable to a product
Answer» D. All labour costs attributable to a product

Discussion

2119.	Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrapvalue. 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

Discussion

2120.	Which of the following is NOT a criticism of a standard-costing system?
A.	It is more expensive than other systems
B.	Variances calculated under standard-costing come too late to be useful
C.	It can cause dysfunctional behaviour in a JIT/FMS environment
D.	Traditional cost variances are not tied to specific product line
Answer» C. It can cause dysfunctional behaviour in a JIT/FMS environment

Discussion

2121.	Composite unit is distinctive feature of-------
A.	Single or output costing
B.	Process costing
C.	Job costing
D.	Operating costing
Answer» E.

Discussion

2122.	If Profit divided by the capital employed, it reveals--------------
A.	Labour productivity
B.	Machine productivity
C.	Material productivity
D.	None of these
Answer» E.

Discussion

2123.	The method of costing used in case of a gas company is termed as---------
A.	Job costing
B.	Process costing
C.	Operating costing
D.	Contract costing
Answer» D. Contract costing

Discussion

2124.	Cost Accounting is applied to:
A.	Public undertakings only
B.	Large business enterprises only
C.	Small business enterprises only
D.	Manufacturing and services concerns
Answer» E.

Discussion

2125.	Responsibility accounting aims to:
A.	Ensure that costs become the responsibility of a specific manager
B.	Ensure that a manager is punished if things go wrong
C.	Reduce the costs that a department incurs
D.	Allocate costs to all areas of a business
Answer» B. Ensure that a manager is punished if things go wrong

Discussion

2126.	The firm’s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labourhours, 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.

Discussion

2127.	A ……………………. institution is a voluntary association of independent economic units,organized, capitalized and run by, and for its members, providing and/or marketing goods and services on cost-to-cost basis to their members.
A.	cooperative
B.	private
C.	public
D.	all of these
Answer» B. private

Discussion

2128.	…………………… movement can be an important instrument in furthering the socialistprogress.
A.	cooperative
B.	privatization
C.	both a & b
D.	none of the above
Answer» B. privatization

Discussion

2129.	……………… is, “a form of organisation wherein persons voluntarily associate together ashuman beings on a basis of equality for the promotion of economic interest of themselves”.
A.	cooperation
B.	joint stock companies
C.	cartels
D.	trusts
Answer» B. joint stock companies

Discussion

2130.	A…………………… has been defined as an “economic and social organisation of the workingpeople, serving not only interest of the members, but also social progress,” which promotes safeguards and realizes the interests and aspirations of the working people”.
A.	cooperative organisation
B.	private organisation
C.	public organisation
D.	all of these
Answer» B. private organisation

Discussion

2131.	…………… is nothing but “self-help made effective by organisation.”
A.	cooperation
B.	joint stock companies
C.	cartels
D.	trusts
Answer» B. joint stock companies

Discussion

2132.	In the words of …………………, cooperation is, “a form of organisation wherein personsvoluntarily associate together as human beings on a basis of equality for the promotion of economic interest of themselves”
A.	h. calvert
B.	herrick
C.	horrace plunkett
D.	robert owen
Answer» B. herrick

Discussion

2133.	According to …………….Herrick, it is “the act of poor persons voluntarily united for utilizingreciprocally their own forces, resources or both, under their mutual management to their common profit or loss”.
A.	herrick
B.	horrace plunkett
C.	robert owen
D.	h. calvert
Answer» B. horrace plunkett

Discussion

2134.	In the words of Horrace Plunkett, it is nothing but “self-help made effective by organisation.”
A.	horrace plunkett
B.	robert owen
C.	h. calvert
D.	herrick
Answer» B. robert owen

Discussion

2135.	……………………..eliminates the employers and provides independence to the workers.
A.	cooperation
B.	joint stock companies
C.	private firms
D.	none of the above
Answer» B. joint stock companies

Discussion

2136.	A …………………….society is a union of weak and needy individuals who have equal rightsand has one vote irrespective of the number of shares held by him.
A.	cooperative
B.	charitable
C.	both a & b
D.	none of these
Answer» B. charitable

Discussion

2137.	…………….determines where the organization is going and how it will get there.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» B. organizing

Discussion

2138.	………………….. sets organizational objectives and goals, forecasts the environment in which objectives must be accomplished, and determines the approach by which objectives and goals are to be accomplished.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» B. organizing

Discussion

2139.	…………………is used to determine a policy and the procedures for putting it into effect.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» B. organizing

Discussion

2140.	………………..helps a manager shape the future of the organization rather than being caughtin an endless trap of reacting only to current crises or problems.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» B. organizing

Discussion

2141.	………………is concerned with determining the specific activities needed to accomplish theplanned objectives and goals.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» C. directing/motivating

Discussion

2142.	………...........is concerned with grouping the activities into a logical pattern, framework, orstructure.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» C. directing/motivating

Discussion

2143.	……………..is concerned with assigning the activities to specific positions and people; andproviding means for coordinating the efforts of individuals and groups.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» C. directing/motivating

Discussion

2144.	Organizing is a bridge connecting the planned objectives to specific projects for accomplishingthese objectives.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» C. directing/motivating

Discussion

2145.	………………..through motivation concerns the people side of the organization.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» D. controlling

Discussion

2146.	Managers must have leadership skills and be effective communicators for ………….function.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» D. controlling

Discussion

2147.	In ……………………, management monitors the progress of plannedactivities. If progress islagging, necessary adjustments are made.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» E.

Discussion

2148.	………………..is the checkup part of a manager’s job.
A.	planning
B.	organizing
C.	directing/motivating
D.	controlling
Answer» E.

Discussion

2149.	In the ………………….the board of directors reports to membership, reviewing the pastbusiness year and the year’s financial statements.
A.	annual general meeting
B.	board of directors meeting
C.	operational meetings
D.	all meetings
Answer» B. board of directors meeting

Discussion

2150.	In the …………….the board seeks approval of its recommendations for surplus allocation.
A.	annual general meeting
B.	board of directors meeting
C.	operational meetings
D.	all meetings
Answer» B. board of directors meeting

Discussion

Explore topic-wise MCQs in UGC-NET.

---------- means ‘Change for better’.

TQM revolves around the concept of:

An adverse material usage variance together with a favourable materials price variance could suggest that:

For an educational institute the right method of costing is------------

Prime cost can be defined as:

Which of the following pair is odd one?

Where process scrap is recycled for use in conjunction with new material as well as being so externally, which of the following is most likely to be the value at which is debited to the process?

When carrying out variance analysis ideally, we should:

In August actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit. Actual output was 1,075 units. If the standard material cost of each product is 25 the material efficiency variance will be:

----------- are those products which are manufactured in different varieties by the same industry.

------------ is regarded as ‘Price-led costing’.

----------- in Activity Based Costing is like ‘cost centre’ in traditional costing.

For hotels the best method of costing is----------

Electricity generating company should employ----------

Purchased materials are added in the second department of a three-department process; thisincreases the number of units produced in the second department and would always:

----------- variance is always adverse.

The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance?

Direct labour costs will include:

Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrapvalue. If output is 40 units the amount of abnormal loss would be-----------

Which of the following is NOT a criticism of a standard-costing system?

Composite unit is distinctive feature of-------

If Profit divided by the capital employed, it reveals--------------

The method of costing used in case of a gas company is termed as---------

Cost Accounting is applied to:

Responsibility accounting aims to:

The firm’s direct-labour rate variance was 4,800 unfavourable. Actual labour was 24,000 direct-labourhours, 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 ……………………. institution is a voluntary association of independent economic units,organized, capitalized and run by, and for its members, providing and/or marketing goods and services on cost-to-cost basis to their members.

…………………… movement can be an important instrument in furthering the socialistprogress.

……………… is, “a form of organisation wherein persons voluntarily associate together ashuman beings on a basis of equality for the promotion of economic interest of themselves”.

A…………………… has been defined as an “economic and social organisation of the workingpeople, serving not only interest of the members, but also social progress,” which promotes safeguards and realizes the interests and aspirations of the working people”.

…………… is nothing but “self-help made effective by organisation.”

In the words of …………………, cooperation is, “a form of organisation wherein personsvoluntarily associate together as human beings on a basis of equality for the promotion of economic interest of themselves”

According to …………….Herrick, it is “the act of poor persons voluntarily united for utilizingreciprocally their own forces, resources or both, under their mutual management to their common profit or loss”.

In the words of Horrace Plunkett, it is nothing but “self-help made effective by organisation.”

……………………..eliminates the employers and provides independence to the workers.

A …………………….society is a union of weak and needy individuals who have equal rightsand has one vote irrespective of the number of shares held by him.

…………….determines where the organization is going and how it will get there.

………………….. sets organizational objectives and goals, forecasts the environment in which objectives must be accomplished, and determines the approach by which objectives and goals are to be accomplished.

…………………is used to determine a policy and the procedures for putting it into effect.

………………..helps a manager shape the future of the organization rather than being caughtin an endless trap of reacting only to current crises or problems.

………………is concerned with determining the specific activities needed to accomplish theplanned objectives and goals.

………...........is concerned with grouping the activities into a logical pattern, framework, orstructure.

……………..is concerned with assigning the activities to specific positions and people; andproviding means for coordinating the efforts of individuals and groups.

Organizing is a bridge connecting the planned objectives to specific projects for accomplishingthese objectives.

………………..through motivation concerns the people side of the organization.

Managers must have leadership skills and be effective communicators for ………….function.

In ……………………, management monitors the progress of plannedactivities. If progress islagging, necessary adjustments are made.

………………..is the checkup part of a manager’s job.

In the ………………….the board of directors reports to membership, reviewing the pastbusiness year and the year’s financial statements.

In the …………….the board seeks approval of its recommendations for surplus allocation.