In the name of ALLAH, the most beneficient, the most merciful

Cost & Management Accounting (MGT402)

Multiple Choice Questions (MCQs)

Objective Questions

  1. Selling cost of a shoe manufacturing company is the example of:

    1. Period cost
    2. Product cost
    3. Standard cost
    4. Activity based costing
  2. Capacity variance will be favorable if:

    1. Applied factory overhead cost > Estimated factory overhead cost
    2. Applied factory overhead cost < Estimated factory overhead cost
    3. Estimated factory overhead cost > Actual factory overhead cost
    4. Estimated factory overhead cost < Actual factory overhead cost
  3. Which of the following is CORRECT to compute labor turnover rate by using Replacement method?

    1. Number of workers replaced during the period ÷ Average number of workers during the period
    2. Number of workers replaced during the period + Average number of workers during the period
    3. Number of workers replaced during the period × Average number of workers during the period
    4. Number of workers replaced during the period − Average number of workers during the period
  4. Which of the given Inventory valuation method reports higher net income?

    1. First in First Out
    2. Weighted Average
    3. Last in First Out
    4. Average Cost
  5. Buyer produced 20,000 units and their total factory cost was Rs. 450,000, other cost like property tax on factory building of Rs. 10,000 was included in that cost till year ended. The cost of per unit would be:

    1. Rs. 22.5
    2. Rs. 23.5
    3. Rs. 24.5
    4. Rs. 26.5
  6. Cost of goods sold = ?
    Beginning inventory = Rs. 30,000
    Ending inventory = Rs. 40,000
    Inventory turnover Ratio = 10 times

    1. Rs. 350,000
    2. Rs. 70,000
    3. Rs. 10,000
    4. Rs. 35,000