( 1. One ofthese is not a costing method A 4) Job costing +y Standard costing c) Process costing 4) Contract costing 2, According to behavior cost can be classified a8........ and . s)Direct and commoncoss __¥) Mixed andstepcoss__«) Fixed and variable cons 4) Relevant and indirect costs fr 3, Itai hs a contribution of 927 per unit and break even sales of 60,000. What i the ‘company’s fixed CD ifthe contribution to sales (cs) ratio is 50%? 3) §30,000 by29,000 31,500 6) 631,000 4. One of these is not an objective of cost accounting information. e 4) Ithelps to determine the value of inventories of goods, ») It assists managers in fixing the selling price of products, 6) It isused as collateral for securing bank loans 4) Itaid the preparation of budgets ‘5. What would be the required units ofa product to be sales (ls) ratio is $0%, and selling price is N40 per unit? to make a target profit of 35% st is 455,000, contribution to 8) 4,750 units ) 4,800 units ©) 4,400 units 6. A particular product sells for NSO per unit and has a contribution to sales (c/s) is 20%, what isthe sales value (in nara) required to achieve a profit ater tax of N )N220,570 1b) N243,750 8) Cost unit ») Cost object 8. Acost that remains unchanged irrespective of ch a) Levelled cost 1) Fixed cost 9. ‘The benefits sacrificed for an alternat 2) Opportunity cost —_b) Sac ©) Controlled cost d) Beneficial cost 10, Juped International Ple. pr ilo TNs and ed the sling pre for NID Is variable cots N12 per uit andthe ‘annual fixed cost is N70,000.. Rano tax rate of 50%, how many units must be sold to make a profit after tax of N22,000? . 8) 14,$50 units nits 9) 14,000 units 4) 14250 units 11. Armixed cost is gi that cor ae 2) Product: s 'b) Controllable and uncontrollable costs» ¢) Fixed and 'd) Direct and indirect costs 12. Royal i eof... {na typical manufacturing firm ») Indirect expense ¢) Administrative overhead 4) Direct expense ‘a product is N30 and its marginal cost is N24, what wil be the break even sales (i naira) assuming total fixed 163,642 >) N161,780 ) NIGI,665 a) 166,562 between sales and marginal cost in a typicel manufacturing firm, ingProfit _) Contribution ©) Gross profit 4) Marginal profit,15. One major diference between marginal costing and absorption costing is that. «) Magia costing includes ned overhead a part of prod cos en absorption costing does not {More profuse produced ender maria easing than borin costing 6) Ine merino aft under aril cotng it lowe thn hat of orion cong 4) Marginal costing does not include fixed overhead as part of product cost while absorption does YH), 16. The most appropriate bass of overhead apportionment of canteen costs. ‘Floor area occupied) Number of employees) Book Value 4) Kilowatts 17. ifthe mnual demand of inventory is 19,600 units, the order cost is N2S and the cost of keeping on i ‘What is the economic order quantity (E0Q)? 2) 350 units 330 units, 9320 units 4) 325 units 18. Ifthe economic order quantity (EOQ) of pawpaw limited is 300 units and its cost is f the firm's annual demand ifthe cost of holding one inventory is M2? 8) 4,000 units b) 4,500 units 4,800 units 19. 1¢the annual demand of inventory of Diplo Ventures is 46875 units and. cost is is the economic order quantity (E0Q) for Diplo Ventures if carrying cost is N12? 8) $00 units ) 450 units ) $30 units 0 units 20. One of these isnot part of total material cost of a manufacturing, 8) Stock out cost ') Ordering cost) Fin 4) Carying cost 21, What would be the economic ordering quantity (EOQ) of ‘material per unit is N20, cost of placing and receiving on ares if annual demand is 16,000 units, purchase price of annual carrying cost of one unit is N10? 6420 units 22. At BOQ Carrying cost i equa to. 8) Sunk cost) Stable cost ©) Clear cost Ordering cost 23. A detailed record document used quantity of materia received and the price value is known a. ©) Bin Card se eri Card d) Requisition card 24. A fim has its Aina 3 ) as 1,00 units maximum usage as 950 unit per day and minimum usage as 400 i day 15 200 its per day and re-order period 4 to 8 day, what wll be the re-order sock ete 7,600 units 4)3,800 units TO ager Nha esmnomic order quantity (EOQ) of 2.000 unis, average usage of 100 units per b) 10 days ©) MA days D7 days ny fs E005 200 unis Re-reevel400 us Rk tod as 2—4 dy I Mae ‘Minimum usage is 150 units, what is the Maximum stock level for the company? = oy »)2,400 units ©) 1,900 units 2,000 units rer level of firm is 600 units, its EOQ is 1,000 uni Minimum sock level fo the hn 2 1:00 Wits Reorder period a 3~$ wees. its Average usage i 10 unit, 00 units 1) 400 units ©) 100 units 4) 150 units28. Grace Pl. produces Papple drink and fixed it sales price as M20, If its marginal cost is N1O and fixed cos is N70,000, ho ‘nits must be sold to make a profit of ¥20,000? 8) 9,550 nits 1) 9,520 uni 6) 9,020 units 9,000 units 29. A product as its variable cost as N24 and selling price as N30, what wl be the breakeven sales (in naira) assuming oa to be 632,333? 9) N163,642 byNI61,780 )NI61,665 a) 166,562 30. The difference between break-even sales and budgeted sales values is kn0WM 8S .-sr-ee-ve 1) Margin of safety _b) Differential salesc) Precautionary sales, A) Reserved, 3:1. Break-even point is a point wher... 1) Variable costs equa to fixed cost _b) Contribution is Maximized €) Variable cost exceeds fixed costs 4) Contribution equals fixed cost t 8) All costs incurred in manufacturing a product ) The total ) The material cost ofa product. d) The total of ll indirect co 33. Whats the contribution to sales (es) ratio fr Produet Mercy using the foo Niper unit 20 Direct labour cost ‘Variable production overhead ‘Variable selling overhead cost id a 1 Fixed overhead cost 5 40% by 48% 34, The following re advantages of NPV except 4) It ignores rsk and management attitude towards i ‘It considers the time value of money ‘o)Ithelps managers to either accept o 8) The process of establishing ') The charging of dscrte id Ito finished products is known as. €) Finished cost 4) Product cost rethead apportionment ') Two steps apportionment method 4) Specific apportionment method to sales (cs) ratio is 32% and budgeted sale is 400,000, what would be the margin of safety if fixed cost 1) 600,000 9) 6312.50 487,500 {is NOT an assumption of Cost volume profit analysis single product or constant sales mix) The firm must be a manufacturing company icon canbe spared nto fiked and varable oss ) Nonceint40.4 ite pan of aston expres in monty tems which cnn exinated revenues and etna expenditure ¥Q 8) Monetary plan ) Budgete) Revenue and expenditure plan 4) Action plan 41. Conventionally a budget is prepared 42. A cash budget involves. detailed estimates of anticipated... oe - mc. yee ) 0; Oe ates information evaiabe to prepare ts cash budget for monn of pember 2015: Staffs welfare 44, 4 com 8: Ofice maintenance M10, 000; Other payments Ral 000; teak receipts id Brofit M30,000. Included inthe Othe payments is M1500 for deprecation of offs balding What wil bean th of September 2015? 9) 825,000 ») 30,000 m5, 1) 935,000 ‘45. The proces ofenuring that organizational resources ar uilzed and expend fed is known as... 8) Budgetary directing ) Budgetary atinity ©) Budgetary perseverance _d) Budgetary conned 46, One ofthese is Nota benefit of budgeting 4) Itensures sound organizational structure ) tis efficient utilization of organizations reso 6) Itserves a useful performance evaluation too! 4 Iecan be used as bank collateral for loan 47. Universiy of Lagosis preparing is cash budget fo these expenses should not be included in the budget? 8) Cos of staffs welfare ) Depreciation of Vice Chancellors offical car ©) Cos ofrefeshent for mectings 4) Cos of stationary 48. Which one ofthe following i 9) For argument purpose ©) For planning Ds.) For Communication of pans 49. One ofthese isnot ar Hnca)Mhoraisal technique 8) Accounting rate ) Payback period 6) Internal rate off )Non ofthe above 50. The followi Pc ow investment pps cigs except. ) Internal rate of return All ofthe above Shar, een gUe S88 npoft for analysis ©) Seietiie Real Net pr ue 1) Imernal rate of return back period 4) All ofthe above53, The overhead costs of Meries Limite include Depreciation of factory MI,240,200 and Factory repr and maintenance Trckstion relating tothe production and service departments in the factory is as follows DEPARTMENTS Protusion —Producion Service sense rs ® ra Foor space (squire meres) 1.200 1600 #00 i 3,00 6:0 aco 1600 Names ofemplyees 60 o 0 x0 Dooku ofequpment 830m Nom NIOm N2m “What wil be the depreciation overhead cost apportioned to Service department “Y" using Floot space 132,020 22,020, ©) M133,020 ‘124,020 54, Heaven Limited Company has two service departments and two producing departments, In for exc 3 for 2008 isas follows; Serve department Pr ‘Admin. Maintenance Molding by " " N Budget overeat sooo 120,000 Dirt labour hours 500 2000 25,000 sing the direct method (One step sppoionment), what will be the ovetheAd cost apportioned to Assembly department on the basis of direct labour hours? 8) N65,388.00 by N63,37885 ©) N67,368:42 69,298.98 55. HELP Company has budgeted production overhead of MS0Q,090 and a bud therefore a recovery rae of N20 pr direct labour hour, Whgfiybuld be the undet overheads cst s N470,000 and 25,000 diet labour hors ctvity of 25,000 direct labour hours and sorbed or over-absorbed overhead if actual 8) N30,000 under absorbed +6) 630,000 over «€) N470,000 under absorbed a) M47 ‘56. What would be the economic order quantity (EO) demand is 6,000 units, purchase price of material per unit is N20, cost of placing and receiving one order is ing cost of one unt is 1086 of purchase price of material 8) 660 units b) 640 units 4) 600 units ‘57. Arte Intemet overhead cost for Fay staffs in each departments. What {Business Administration is NSO0,000, and it has 6 department inthe faculty and 100 tost appropriate for apportioning the Interet overhead cost? ‘by Number of staffs in each department 'd) Acres of land own by each department 4) Floor area occupied by eac ‘) Number of working days it 58, All ofthese except. of stock valuation 2) First in first out ‘) Lastin last out ¢) Weighted average + a) Distribution 59. The over inessMRmited include Factory repairs and maintenance of N605,500. Information relating to the pl in he factory is as follows; DEPARTMENTS Production ‘Production Service ‘ A B x ret s) 1,200 1,200 1,600 b es 80 © 30 eeystinmen 630m 20m -N10m pacry esis and mnenance oven cost spoon 0 proutiondepaient “B” using Floor space 35 basis of an ty 181.650 ©) M183,620 ay wisso2s 60, a so record document containing only the quantity of materia recived in the store is known a8. ‘ain Card ') Store Ledger) Material Card d) Requisition card f,(61. Marginal costing is another method of costing products or services using... < ~ 1) Variable Cost, b) Fixed Cost os «) Variable and Fixed Cost 6) Semicixed cost 162. One ofthese costing techniques is recommended by statement of accounting standards four (SAS 4) Absorption costing VaR: of Production wing nnn 8) Marginal costing " ) Distribution costing & 6) Production costing 4) Absorption costing (63. In marginal costing al fixed costar retted 8 sess 4) Period Cost) Product Cost c) Outstanding cost Relevant cost . costing technique is wed for short term decision making by managers 2) Absorption) Labour) Marginal ) Maia Use the following information o answer question 68 8 Docemo Li tht manufactures singe product asthe following for ape Selig Price Per Unit S00 Variable Manufactring Cos Per Unit Mavo Varble Selig & Admative Expenses Per Unit W100 Fined Cots : Manicuring 4,060,00 Per Annum Salling & Adin 5.00.00 Per Annum Number of Unis Produced owen 6. ‘Number of Units Sold 3 65. The net rot forthe period sing absorption co 2)N9.065,000 6) N,00,000 4) 68,080,000 (66, The et profit forte period using may 199,850,000 8.000.000 4) ¥8,60,000 67. What will be the value of c <4) 84,505,000 4)%5,500,000 fixe manuactaring cost as ele 10 Costing ») Marin sanded 4) Batch by 8 years ©) 7 years 10 years7. B. 74. 75. 16. 71. 8. 79. 80. 81 82. 83. 84. 86, : is the value obtained by discounting all cash outflows and inflows of a capital investment project by a As target rate of returm or cost of capita » 1) Internal rate of return ') Accounting rate of retum 6) Net present value 6) Payback return will occur where there are projets with positive net present values but the fund to execute ea 4) Capital budgeting») Capital rationing ©) Capital austerity d) Capital hedging Another name for marginal costing tecinigue is... 4) Additional costing b) Adjusting costing ©) Real costing 4) Variable offi All of these are costing techniques except... 4) Product costing ) Absorption costing ©) Marginal ) si e ‘Which costing method is most appropriate ina chemical industry? 1) Contract costing _b) Job costing ©) Process costing o One ofthese costs is a relevant cost indecision making 8) Opportunity cost b) Distribution cost ©) Open cost cost Ifthe cost ofa Job i 100,000, and profit is 25% ofthe Job costayhat isthe price Wb Job? 3) 870,000 1) N125,000 ony 6) ¥120,000 Ifthe cost ofa Job is 150,000, an hes margin of 25% th the Job is 1) N187,500 6) N200,000 ong Ps) N220,000, ‘A Job has it total cost as 200,000 and a marginlpf profit of the Job? 6) 50,000 3) 52,000 1) m42,000, ‘The process of attributing overt 'o a pantcular product or service in the total cost of the product or service is known 8) Overhead absorption 0 tionment ©) Overhead allocation Over ution {na manufacturing industry 'b) Selling and distribution overhead 2) Produetion €) Period Administrative overhead “The direct ehfepefabahticulayverhcad cost item to a specific cost centre where it was incurred is known as, ) Overhead absorption 4) Overhead combination overhead is asa result of using .....nc-c0sting technique Standard Real 4) Absorption Inder mars costing technique, the adition of profit and fixed cost is known a... > cost )Contribution ¢) Profit margin 4) Fixed cost absorbed “Another name for contribution to sales rato is.. tatio Profit volume ‘)Contibution ) Sales margin 4) Marginal cost *87. tft contbution margin ao fs 20% and marginal cost per unt M40, what the sling price per unit? ons »Mo ons ass 88. One of these is true about relevant cost 1) Itisastraight cost _b) [tis acommon cost ©) tis future cost 4) Itis a sunk cost 89. A frm has its budgeted overhead cos as M360,000 and 100,000 units were produced forthe period. If 320,000, circ labour cost is N400,00 and machine hours 180,000 hours, what ithe ovetead abso of prime cox basis? 55% ») 50% ©) 45% ayao% 90. The budgeted overhead cost of Duro Limited is 400,000. The total units produced for its. I its direct ‘material cost is N120,000, direct labour cost is N30,000 and machine hours 420,000, a8 absorption rate ‘using units produced basis? Ns N10 on 91. One ofthese is not a method of labour remuneration 4) Mercy Best method +) Time based method ©) Output based method 6) Bonus and incentives schemes 92. Day rate is applicable wher. 4) Nature of work makes it easy to determine specific out 'b) Nature of work makes it difficult to determine specific. ©) Output of each work can be esi 4)None ofthe above 93. A worker who worked for 6 hours at an hourly fo eam... ..c..under day rate scheme ans bn aN 94. One of theses coret about the Hasley 8) Bonus Pay = 1/2 X Time saved: Rate X 100 ) Bonus Pay = 1/3 X Time sav (©) Bonus Pay = 14 X Time sav 4) Bonus Pay = 12 X Time: 95. All except one is nota mpthod of labour under the bonus scheme 8) Hasley bonus: 'b) Rowan bonus scheme <4) Tasley-Weir bonus scheme BD) at Aetna ho en 6d prec 0 Beinn wore nti as ona tet yN9 ona ana ly rate is 3 and agreed rate of production per hour is 60 units, actual hours taken is 6 hours and units produced is 480 's the worker's pay under the Rowan bonus scheme? 22 bnazs ones anaDering these pid es were mae fr .200 kon the 258 of ana Using FIFO metnod, what the cor fara 1s fF the month? N47, 500 yns7,000 ——«) 32,000) N45,000 112, inthe mont o uur, Appl Firm made purchases of 2,000 kgs of Inventory in three branches. 34an 160 kgs at NSO perk Adan 400 kgs at H30 pe KB 21 Jan 800 kgs at N25 perks, Dering he same prio sles were made for 1,200 kg onthe 2 of anor. Using FO matod, wha sR inventory? =) 620,000 W)NI5,000 —«)N32,000-—_«) 30,000 113, Inthe month of January, Apple Firm made purchases of 2,000 kes of Inventory in three bran 3Jan 1600 kgs at 50 per ke, 11 Jen 400 kgs at N30 per kg 2 Jan 800 kgs at N25 per ke, During the same period sales were made for 1,200 kgon the 25% of January. Using wet thd, what is the cost of goods sold forthe month? 2) 442,000 WyN30,000 9) N37200 NAT 114. Inthe month of Sanuary, Apple Frm made purchases of 2,000 kgs of In re branches. 3an {600 kgs at NSO per ke, ian 400 kgs at N30 per KB, 21 Jan 800 kgs at N25 per ke During the same period sales were made for 1200 kg on Using weighted average method, what isthe value of closing inventory? 9) NI8,600 Wyn21,000 | N3g 115. Which costing method is most appropriate 8) Contract costing _b) Job costing Rosting 4) Service costing 116, ifthe selling price ofa Job is and profit is 25% onthe Job cost, what i te profit of the Job? 1) N170,000 )™160,000 ¥275,000 6) 6200,000 117. _ Thecost of Job is IS and its malig is 15%. What isthe sales price ofthe Job? 1) N1,664,705.88, by 5788 c) NI,764,705.8 &) 1,725,000 118, fob Kindness 000 and a margin of 20%. What isthe profit of the Job? 8) N1,500,000 by ©) 1,600,000 4) 2,200,000 7/000 and the profit margin is 40%, what is the selling price ofthe Job? 17,500 ‘)M12,500, ‘6)N7,500 oF H10,000 and a mark-up of 25%. What isthe cost ofthe Job? 1) 630,000, «450,000 6) 40,000, the following: direct material is N6,800; direct labour cost is 60 hours at N3 per hour; variable overhead is N1.50 rest labour hour and budgeted fixed overhead is M20,000 for 10,000 normal working hours. What isthe price to quote if « 20% on costs desired? 2) N8,628 b)NT,190 8,789 a n8.484 10