1.A company orders a particular raw material in order quantities of 250 units. No safety stock is held, the stockholding cost is GHC3 per unit per annum and the annual demand is 2500 units. What is the total annual stockholding cost of the material? A.GHC375 B.GHC750 C.GHC3,750 D.GHC7,500

2.The pool of inventory costs consists of the beginning inventory plus the cost of goods purchased. A.True B.False

3.Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods. A.True B.False

4.The following information relates to a raw material stock item: Economic order quantity 800 units, demand 12,000 units per annum, cost of holding stock GHC1.50 per unit per annum. What is the cost of placing an order? A.GHC27 B.GHC40 C.GHC71 D.GHC80

5.If the company changes to the weighted average method of stock valuation, the effect on closing stock value and on profit for the week compared with the FIFO method will be: A.Closing stock value will be higher and gross profit for the week will be higher

B.Closing stock value will be higher and gross profit for the week will be lower

C.Closing stock value will be lower and gross profit for the week will be higher

D.Closing stock value will be lower and gross profit for the week will be lower

6.The order quantity of a raw material is 2,000 kg. Safety stock of 1,200 kg is held. The stockholding cost of the raw material is GHS1.2 per kg per annum. What is the total annual stockholding cost of the raw material? A.GHS1,200 B.GHS1,920 C.GHS2,640 D.GHS3,840

7.There are 27,500 units of Part Number X53 on order with the suppliers and 16,250 units outstanding on existing customers orders. If the free stock is 13,000 units, what is the physical stock? A.1,750 units B.3,250 units C.14,000 units D.29,250 units

8.The following information is available regarding a particular component: component price GHS27, component usage 5,000 per month, cost of placing an order GHS20, cost of storing components for one year 1% of stock value. The economic order quantity for the component (to the nearest unit) is: A.298 units B.861 units C.2,981 units D.15,492 units

9.Using the first in, first out (FIFO) system for pricing stock issues means that, when prices are rising: A.Product costs are overstated and profits understated B.Product costs are kept in line with price changes C.Product costs are understated and profits understated D.Product costs are understated and profits overstated

10.The difference between the guaranteed day rate and the piece rate should be charged to the overhead account as a direct cost. A.True B.False

11.The amount paid to direct labour includes GHS25,000 for ordinary time, basic pay overtime of GHS5,000, premium overtime of GHS3,000, shift allowance of GHS4,000 and sick pay of GHS1,500. The direct wages cost for the period is A.GHS38,500 B.GHS35,500 C.GHS34,500 D.GHS30,000

12.Normal idle time is the labour time that is lost because it cannot be avoided and has to be borne by the employer. A.True B.False 13.Labour turnover is a common feature in all business organizations where some workers leave a job and new workers join. A.True B.False

14.The piecework rate in a factory is GHS2 per unit and the minimum pay is GHS42/day. A bonus of GHS5 is paid in addition to the piecework rate if more than 30 units are made in a day. On Monday, Harry makes 20 units. On Tuesday to Friday he makes 21, 24, 32 and 27 respectively. The gross amount earned by Harry is A.GHS210 B.GHS248 C.GHS253 D.GHS255

15.Normal idle time is attributed to defective planning, inefficiency or bad work. Payment should therefore not be included in product cost but be treated as period cost i.e charged to profit and loss account. A.True B.False

16.A manufacturing firm is very busy and overtime is being worked. The amount of overtime premium contained in direct wages would normally be classed as: A.Part of prime cost B.Factory overheads C.Direct labour costs D.Administrative overheads

17.Which of the following is not an advantage of a group incentive pay scheme A. Administration time is reduced B. Individual working arrangements may become more flexible C. Non-production hours for individuals can be included in the scheme D. Bonuses are easy to allocate to individuals

18.When overtime is worked at the request of the customer due to urgency of work and the customer agrees to bear the entire charge of overtime premium, it should be charged as an indirect cost. A.True B.False

19.Which of the following would be classed as indirect labour? A. Assembly workers in a company manufacturing televisions. B. A stores assistant in a factory store C. Plasterers in a construction company D. An audit clerk in 6a firm of auditors

20. Flux method shows the total change in the composition of labour force due to separation and replacement of workers. A.True B.False

21.An employees wage consists of a basic rate and a bonus based on units completed (GHS0.40/unit). If he works 6 hours, completes 50 units, and is paid GHS68, what is the basic rate per hour? A.GHS5/hour B.GhS6/hour C.GHS7/hour D GHS8/hour

22.An efficient worker always gets more bonus under Rowan plan than under 50% Halsey plan. A.True B.False

23.Both indirect materials and indirect labour are overheads costs. A.True B.False

24.Cost pool is the pooling of overhead cost which relates to a specific activity. This is similar to cost centers in the Traditional approach to overheads absorption i.e instead of assigning cost to department, it is assigned to activities. The polls represent activities such as setups, purchase orders, inspections, material handling. It is the monetary value of the activities. e.g. total value of setups, inspection etc. A.True B.False

25.Cost driver volume is the product of dividing the cost pool for the activity by the cost driver volume. e.g. Total of the cost pool for inspection divided by the number of inspections planned. A.True B.False

26.Cost of conversion comprises purchase price including import duties, transport and handling cost and any other directly attributable costs, less trade discounts, rebates and subsidies. A.True B.False

27.Accountants believe that the write down from cost to market should not be made in the period in which the price decline occurs. A.True B.False

28.Average usage of raw material is 200 kg per day, the average ordering lead time is five days, the reorder level is 1,600 kg and the reorder quantity is 2800 kg. What is the average raw material inventory? A.800 kg B.1,400 kg C.1,700 kg D.2,000 kg

29.The specific identification method of inventory valuation id desirable when a company sells a large number of low-cost items. A.True B.False

30.The following transactions relate to a raw material for a period: Day Transactions Units Total Value (GHS) 1 Balance b/f 100 500 3 Issue 40 4 Receipt 50 275 6 Receipt 50 300 7 Issue 70. The weighted average method is used to price material issues. What is the value of the issue on Day 7? A.GHS376.25 B.GHS382.81 C.GHS402.50 D.GHS410.00

31.Bringer Minn Ltd is a small importing company. On 1 November, it had an opening balance of 50 units of commodity X, valued at GHS9000. On 12 November, it purchased in bulk a further 250 units of commodity X for a gross price of GHS5,000. It received a bulk purchase discount of 5 percent and a further discount of 3 percent on the gross price for making an early cash payment. On 29 November, it sold 200 units of commodity X for a sales value of GHS6,600. Using the FIFO method of valuation, the gross profit in the companys trading account for November for the sale of commodity X was: A.GHS2,700 B.GHS2,790 C.GHS2,850 D.GHS2,940

32.The following data relates to a direct employee in production department A: Normal working day 7 hours, hourly rate of pay GHS8, standard time allowed to produce one unit is 6 minutes, bonus payable at basic hourly rate 50% of time saved. What would be the gross wages payable in a day when the employee produces 82 units? A.GHS33.60 B.GHS60.80 C.GHS65.60 D.GHS84.00

33.A company operates a differential piece-rate system and the following weekly rates have been set: 1-500 units GHS0? 20 per unit in this band 501-600 units GHS0? 25 per unit in this band 601 units and above GHS0? 55 per unit in this band details relating to employee A are shown below: Employee A Actual output achieved 800 units, Actual hours worked 45. There is a guaranteed minimum wage of GHS5 per hour for a 40-hour week paid to all employees i.e they are guaranteed either this or the amount they receive from piecework. The amount payable (to the nearest GHS) to employee A is A. GHS200 B. GHS235 C. GHS435 D. GHS440

34.Overtime premium is: A company is faced with a shortage of skilled labour next period, when determining the production plan that will maximise the companys profit next period, the companys products should be ranked according to their ?

A.The additional amount paid for hours worked in excess of the basic working week B.The additional amount paid over and above the normal hourly rate for hours worked in excess of the basic working week C. The overtime rate D. The additional amount paid over and above the overtime rate for hours worked in excess of the basic working week E. Profit per hours of skilled labour F. Profit per unit of product sold G. Contribution per hour of skilled labour H. Contribution per unit of product sold

35.Abnormal idle time is thar idle time which arises due to reasons not connected with the usual routine of production and therefore has to be borne by the employer. A.True B.False

36. The British call it over or under applied. A.True B. False 37. Which of the following methods of allocating service department costs results in the most accurate product cost.? A.Direct method B.Step method C.Reciprocal method D.Activity-based costing method

Please this is Cost and anagement Accounting questions. Actually I could not it in the subject area, kindly assist me with all workings.