Cost Accounting M.Com QAU — Quaid-i-Azam University 2016

QUAID-I-AZAM UNIVERSITY

ISLAMABAD

M.Com Annual Examinations, Part-II, 2016

August 25, 2016

SUBJECT: M.COM

PAPER: Management Accounting (MC-404)

SECTION-A (OBJECTIVE) (Marks =

32)

Note: Q.No.1 and Q.No.2 are compulsory to be attempted on this page and must be handed over to the

Superintendent within first 40 minutes. Cutting, overwriting and re-writing is not allowed.

Q.No.1: Encircle the correct option: (1*12=12)

i. In a repeated distribution method:

a. Each service department in turn does not re-allocate its costs to all departments

b. Each service department in turn and re-allocates its costs to all departments

c. Each service department in turn and allocates its costs to all departments

d. Only one service department in turn and re-allocates its costs to all departments

ii. The difference over the period of time between actual and applied FOH will usually be minimized when

the predetermined overhead rate is based on:

a. Normal capacity b. Designed capacity c. Direct Labor hours d. Machine hours

iii. The cost of goods sold was Rs. 540,000. Beginning and ending inventory balances were Rs. 20,000 and

Rs. 30,000, respectively. What was the inventory turnover?

a. 8.0 times b. 12.0 times c. 7.0 times d. 9.6 times

iv. A cost unit is:

a. The cost per hour of operating a machine b. The cost per unit of electricity consumed

c. A unit of product or services in relation to which costs are ascertained

d. A measure of work output in a standard hour

v. Loss by fire is an example of:

a. Normal Loss b. Abnormal Loss c. incremental Loss d. Can't be determined

vi. If Sales Rs. 600,000 Markup = 20% of cost. What would be the value of Gross profit?

a. Rs. 200,000 b. Rs. 100,000 c. Rs. 120,000 d. Rs. 740,000

vii. Which of the following is correct?

a. Units sold = Opening finished goods units + Units produced - Closing finished goods units

b. Units sold = Units produced + Closing finished goods units - Opening finished goods units

c. Units sold = Sales + Average units of finished goods inventory

d. Units sold = Sales - Average units of finished goods inventory

viii. If Gross profit = Rs. 40,000 GP Margin = 20% of sales, what will be the value of cost of goods sold?

a. Rs. 160,000 b. Rs. 120,000 c. Rs. 40,000 d. Rs. 90,000

ix. "Taking steps for the fresh purchase of those stocks which have been exhausted and for which

requisitions are to be honored in future" is an easy explanation of:

a. Overstocking b. Under stocking

c. Replenishment of stock d. Acquisition of stock

x. Which of the following is indirect cost?

a. The depreciation of machinery

b. The overtime premium incurred at the specific request of a customer

c. The hire of tools for a specific job d. All of these

xi. In which of the following center FOH cost NOT incurred

a. Production Center b. Service Center c. General Cost Center d. Head Office

xii. Which of the following is considered as best systems of remunerating labor?

a. Time rate system b. Piece rate system

c. Halsey Premium plan d. Both time rate and piece rate system