VU Final Term Past Papers
43 solved final term past paper MCQs for MGT402 (Cost & Management Accounting) at Virtual University, each with the correct answer marked. Use them to learn the VU question style and test your recall. An independent study tool — not affiliated with VU.
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Q1. Material requisition is a document that supports the requirement of the material. This document is sent to store incharge and approved by:
Q2. According to marginal costing concept, all fixed costs are considered as:
Q3. Information concerning Label Corporation’s Product A is as follows: Rs. Sales price 300,000 Variable cost 240,000 Fixed Cost 40,000 Assuming that Label increased sales of Product A by 20%, the profit of the product A would be which of the following?
Q4. If one would prepare a graph with a horizontal axis representing units of production and a vertical axis representing per-unit production cost, how would a line representing fixed production cost is drawn?
Q5. Which of the following is NOT example of a cash outflow?
Q6. Which of the following is a process by which managers analyze options available to set courses of action by the organization?
Q7. A cost that has been incurred but cannot be changed by present or future decisions is called:
Q8. All of the following are deducted from Gross Profit to calculate Operating income EXCEPT:
Q9. Which of the following is(are) base(is) of cost allocation under joint products?
Q10. Which of the following is NOT the type of a functional budget?
Q11. Which of the following cost (‘s) will be considered as controllable cost (‘s)?
Q12. Which of the following is NOT considered as external factor while preparing the sales budget?
Q13. The cost of electricity bill of the factory is treated as:
Q14. When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin?
Q15. The term cost allocation is described as:
Q16. When using a flexible budget, what will occur to variable costs (on a per unit basis) as production increases?
Q17. In a make or buy situation with no limiting factors, which of the following would be the relevant costs for the decision?
Q18. If an item of overhead expenditure is charged specifically to a single department this would be an example of:
Q19. When By-product is to be recycled, which one of the following will be used for costing?
Q20. What is the starting point of variable cost line on a break even chart at zero production level?
Q21. Production budget is an example of which of the following budget?
Q22. In cost Accounting, normal loss is/are charged to:
Q23. The flux method of labor turnover denotes:
Q24. Which of the following method of accounting for joint product cost will produce the same gross profit rate for all products?
Q25. Contribution margin contributes to meet which one of the following options?
Q26. Income approach is used for the costing of which of the following?
Q27. Which of the following cannot becomes a part of product cost under marginal costing?
Q28. Which of the following is/are included in production budget?
Q29. “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:
Q30. Profit under absorption costing will be higher than under marginal costing if:
Q31. Which of the following is an element of cost?
Q32. Increased cost of production due to high labor turnover is a result of which of the following factor?
Q33. When a manufacturing Company has highly automated manufacturing plant producing many different products, the most appropriate basis for applying FOH cost to work in process is:
Q34. Net income reported under direct costing will exceed net income reported under absorption costing for a given period if:
Q35. The point at which the cost line intersects the sales line will be called:
Q36. The by-product of flour is:
Q37. To Payroll a/c
Q38. EOQ = SQRT[ (2)(O)(S)/(C) ] 360 = SQRT[ (2)($5)(S)/($.20) ] 360 = SQRT[ (50)(S) ] (360)(360) = 129,600 = (50)(S) S = 129,600/50 = 2,592
Q39. Closing stock = opening wip + unit received – united completed
Q40. Profit = sale - adsorption cost (total fixed cost + variable manufacturing cost) = 10000 - (2000+3000) = 10000 - 5000 = 5000
Q41. MOS = budgeted sales - breakeven sales = 8000 - 5000 = 3000 MOS RATIO = MOS / BUDGET SALE * 100 = 3000 / 8000 * 100 = 37.5%
Q42. *5 = 3500
Q43. OPENING WIP 2000 ADD STARTED 24000 LESS CLOSING 3000 ________ COMPLETED 23000 EQUIVALENT UNIT CONVERSION COST OPENING WIP (2000*60%) 1200 ADD COMPLETED 23000 CLOSING WIP (3000*45%) 1350 __________ TOTAL UNITS 25 250