_________is the cost of converting raw material into finished products?

Related Mcqs:

1. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

   A. 18,387
   B. 18,560
   C. 18,750
   D. 19,000

2. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

   A. 5,80,000
   B. 5,50,000
   C. 5,00,000
   D. 5,75,000

3. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

4. If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.

   A. 8,000 units
   B. 11,000 units
   C. 10,000 units
   D. 9,000 units

5. Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?

   A. 1,600
   B. 1,500
   C. 1,000
   D. 1,800

   Updated by: Mohammad Ejaz

6. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

   A. Direct cost
   B. Variable cost
   C. Commercial cost
   D. Conversion cost

7. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:
   March 31,2010 – ` 56,000
   March 31, 2011 – ` 51,000
   March 31, 2012 – ` 64,000
   The entry on March 31, 2012 to rectify these omissions would include a

   A. Credit to wage expense for ` 64,000
   B. Debit to wage expense for ` 64,000
   C. Debit to wage expense for ` 51,000
   D. Debit to wage expense for ` 13,000

8. Which of the following assets is/are to be valued at the lower of cost and net realizable value?

   A. Goodwill
   B. Inventories
   C. Investments
   D. Both B. and C. above.

9. The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?

   A. Interest Rate
   B. Required rate of return
   C. Nominal interest rate
   D. All of the above

   Submitted by: Maneesh kumar

10. An average cost is also known as________?

    A. Variable cost
    B. Unit cost
    C. Total cost
    D. Fixed cost