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A company can find out the number of units to be sold to achieve a particular level of profit, but for this, the company must know: *

Required Sales in Rs.

Required Profit

Required Contribution

Required Fixed Cost

When Overheads are under-absorb and adjustment is required, the following entry can achieve the purpose. *

Debit MOHD, Credit COGS

Debit COGS, Credit MOHD

Debit COGS, Credit WIP

Debit MOHD, Credit WIP

Under marginal costing, the contribution is calculated as: *

Sales Total Manufacturing Cost

Sales Total Cost

Sales Variable Manufacturing Cost

Sales Total Variable Cost

Under Process Costing, which of the following is a correct journal entry to record direct labor cost? *

Work in process Dr. & Direct labor Cr.

Work in process Dr. & Wages payable Cr

Wages payable Dr. & Work in process Cr.

Production Dr. & Direct labor Cr.

Under Activity Based Costing, _________ overheads are allocated to product to determine product cost. *

Manufacturing & Non-Manufacturing

Manufacturing

None of the above

Non-Manufacturing

If a company has an adverse Direct Labour Efficiency Variance, which can be the most likely reason for the same: *

Countrys Wage Rate

Highly-skilled labor

Low-quality Material

High-quality Material

A company uses absorption costing for calculation product cost, however, if the company seeks to use marginal costing, the product cost can be calculated as follows: *

DM+DL+Total MOHD

DM+DL+Fixed MOHD

DM+DL+Variabel MOHD

DM+DL

If actual manufacturing overheads incurred are less than absorbed manufacturing overheads, the adjustment in Cost of Good Sold will be done as: *

Cannot be determined

No impact on Cost of Goods Sold

Increase Cost Goods Sold by the difference

Reduce Cost of Goods Sold by the difference

Under process costing, which of the following is charged to customer: *

Product Cost + Abnormal Loss Abnormal Gain

Product Cost + Abnormal Loss

Product Cost + Normal Loss

Product Cost + Normal Loss + Abnormal Loss

The most basic difference between Activity-Based Costing and Traditional Costing method is the treatment and costing for: *

Direct Labors

Overheads

Direct Material

None of the above

If a company using machine hours for allocating manufacturing overhead (instead of activity based costing), a low-volume item requiring a significant amount of special handling will be assigned too __________ manufacturing overhead. *

No Impact

Cannot be determined

Little

Much

A process costing system is used by a company that? *

Produces homogeneous products

Accumulates costs by job

Produces heterogeneous products

Produces items by special request of customers

If Total Direct Material Variance is Favorable, with Material Price variance being adverse, what could be the most likely reason: *

Lower Quality materials

High Supervision

Cheaper labour availability

Good work by the procurement team

In the process account, if a process is completed in Department 1 and transferred to Department 2, what will be the entry to record this transfer? *

Debit FG inventory 2. Credit WIP-1

Debit WIP-2, Credit WIP-1

Debit WIP-2, Credit FG inventory

Debit WIP-1, Credit WIP-1

The difference between a fixed and flexible budget can be defined as: *

A fixed Budget is for long-term, whereas a flexible budget is for short-term

A fixed Budget is based on budgeted cost, whereas a flexible budget is based on the actual cost

Fixed Budget sets target, whereas flexible budget evaluates whether we are on target or not

A fixed Budget is for short-term, whereas a flexible budget is for long-term

A master budget is used by Senior Management to aid in: *

Tax Process

Feasibility studies

Decsion-Making process

Accounting Process

If budgeted sales are 1,000 units and the margin of safety is 300, then we can say that, if the company sells 700 units, it will achieve a breakeven point. This statement is *

Correct

Incorrect

If a company wants to find out the point where it generates neither a profit and a loss, then its contribution margin must be equal to: *

Fixed Cost

Net Profit

Variable Cost

Sales

Under ABC, indirect manufacturing costs are predominantly assigned on the basis: *

Numerous Activity Level

Direct Labour Hours

Direct Machine Hours

Single Activity Level

When calculating Breakeven Point for multiple products, one should use: *

Total Fixed Cost and Weighted Average Contribution Margin of each product

Weighted Average Fixed Cost and Weighted Average Contribution Margin of each product

Breakeven point can only be calculated for individual products

Individual Fixed Cost and individual contribution margin of each product