1. Which of the following is true about Cost control:
A) It is a corrective function
B) It challenges the set standards
C) It ends when targets achieved ✓
D) It is concerned with future
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Sample Questions: CA Inter Cost Accounting
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2. Form used for making a formal request to the purchasing department to purchase materials is a - :
A) Material Transfer Note
B) Purchase Requisition Note ✓
C) Bill of Materials
D) Material Requisition Note Theoretical Questions
3. The difference between actual factory overhead and absorbed factory overhead will be usually at the minimum level, provided pre- determined overhead rate is based on:
A) Maximum capacity
B) Direct labour hours
C) Machine hours
D) Normal capacity ✓
4. A company pays royalty to State Government on the basis of production, it is treated as:
A) Direct Material Cost
B) Factory Overheads
C) Direct Expenses ✓
D) Administration cost. Theoretical Questions
5. Batch costing is similar to that under job costing except with the difference that a:
A) Job becomes a cost unit.
B) Batch becomes the cost unit instead of a job ✓
C) Process becomes a cost unit
D) None of the above
6. Inter-process profit is calculated, because:
A) a process is a cost centres
B) each process has to report profit
C) the efficiency of the process is measured ✓
D) the wages of employees are linked to the process profitability.
7. For the purpose of allocating joint costs to joint products, the sales price at point of sale, reduced by cost to complete after split-off, is assumed to be equal to the:
A) Joint costs
B) Sales price less a normal profit margin at point of sale
C) Net sales value at split off ✓
D) Total costs. Theoretical Questions
8. Controllable variances are best disposed-off by transferring to:
A) Cost of goods sold
B) Cost of goods sold and inventories
C) Inventories of work–in–progress and finished goods
D) Costing profit and loss account ✓