1.
Under labour
incentive schemes, bonus is paid
A.
every December
B.
each time the
company received a large order
C.
to very good
employees
D.
anytime there is
surplus money in the treasury
E.
over and above
the basic pay to reward extra time worked or time saved
2.
Overtime is
A.
work done over a
period of time
B.
time spent in
calling over production figures
C.
time spent by the
employee working beyond the normal working hours
D.
time spent by the
employee in the changing room
E.
time when the
production machines are idle
3.
PAYE is an
acronym for
A.
Pay As You Engage
B.
Pay According to
your Expectation
C.
Pay All Your
Employees
D.
Payment At Year
End
E.
Pay As You Earn
necessary
corrections is in progress.
Thanks.
4.
Ghost workers are
A.
former employees
who are now dead
B.
employees who
were involved in accident whilst working
C.
employees always
on sick leave
D.
workers who do
not exist but in whose names salaries are being paid
E.
those who work in
the cemetary
5.
Gross wages are
calculated by adding
A.
all allowances to
basic wages
B.
all deductions to
basic wages
C.
pension deduction
to PAYE
D.
bonuses and
allowances together
E.
twelve months‟
wages together
6.
Time allowed
minus tame taken equals …………………..
7.
Labour costs
incurred on employees engaged in directly transforming the raw materials into
finished goods is referred
8.
The extent at
which employees leave an organization is known as …………………
9.
The product
of hours worked
and wage rate
10.
The card issued
in the name of each employee which is inserted into an electronic recording
machine to capture time spent at work by the employee is called...…………
SOLUTION
1.
E
2.
C
3.
E
4.
D
5.
A
6.
Time saved
7.
Direct Labour
Costs
8.
Labour Turnover
9.
Basic Wage
10.
Clock Card
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
Overheads are the
aggregates of
A.
indirect
materials, indirect labour and indirect expenses
B.
expenses incurred
over the normal expense heads
C.
expenses incurred
by the owners of the business
D.
all
uncontrollable expenses
E.
all unauthorized
expenses
2.
Distinguish
between overhead allocation and overhead apportionment
A.
Allocation is
used in government whilst appointment is used in the private sector
B.
Allocation is
assigned direct to cost centres whilst appointment is shared to a number of
cost centres
C.
Allocation is
made scientifically whilst appointment is done arbitrarily
D.
Allocation
benefits only managers whilst appointment benefits junior staff
E.
Both terms mean
the same thing
3.
What is the usual
basis of apportioning factory rent?
A.
Number of
employees
B.
Number of
machines
C.
Floor space
occupied
D.
Kilowatt of
energy used
E.
Number of pillars
4.
What
distinguishes a profit centre from a cost centre?
A.
Direct Cost
B.
Indirect Cost
C.
Profit
D.
Loss
E.
Revenue
5.
What does OAR
stand for in overheads accounting?
A.
Organisational
Accounting Returns
B.
Overheads
Accounting Rate
C.
Overheads
Accounting Returns
D.
Overheads
Absorption
necessary
corrections is in progress.
Thanks.
E. Organisational
Absorption Rate
6.
Where the actual
overheads for a period exceeds the predetermined overheads, we have a
case…………of…..…………
7.
A system of
continuously reallocating each service cost centre overhead until the amounts
become insignificant is known as ……………….
8.
Overheads covering
cost of securing orders, publicizing and presenting to customers the products
of a company in proper forms at acceptable prices and delivery of the goods to
customers are generally known as …………………
9.
Where the
production process is highly mechanized making the use of labour hours
inappropriate for overhead absorption, what alternative basis may be used?
10.
Which is the best
way to treat over- and under-absorbed overheads for a period?
SOLUTION
1.
A
2.
B
3.
C
4.
E
5.
D
6.
under-absorption
7.
continuous
allotment
8.
marketing,
selling and distribution overheads
9.
machine hour
10.
write off to
Profit & Loss Account
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
An interlocking
accounting system has
A.
various ledgers
relating to one another
B.
a separate set of
financial ledgers and separate set of costing ledgers
C.
accounting
entries locked up in the ledger
D.
different ledger
for direct expenses and indirect expenses
E.
a single set of
ledger serving dual purpose
2.
A trial balance
is
A.
the set of
accounting records presented at court cases
B.
an account
prepared to determine
a com
C.
list of account
balances –both debit and credit sides balance
D.
the balance of
the cost ledger control account
E.
a statement of
balances on bank accounts
3.
What is notional
charge?
A.
a charge on the
assets of the company
B.
a government
charge to be paid by the company
C.
charges
introduced to reduce tax liability
D.
charges which
though not payable are meant to reflect the normal costs of running the
business
E.
expected income
which may be recognized in the accounts
4.
In reconciliation
of profits disclosed by interlocking accounts, what are purely financial
matters?
A.
Items involving
cash transactions
B.
Balance sheet
items
C.
Matters relating
to the banks
D.
Salaries and
wages paid to casual workers
E.
Financial matters
outside the scope of production
5.
What is a control
account?
A.
An account in the
main ledger summarizing the subsidiary ledger accounts
B.
The account
maintained by the Financial controller
C.
An account
maintained by the Cost controller
D.
A separate
account for monitoring factory performance
E.
A secret account
for monitoring factory performance
necessary
corrections is in progress.
Thanks.
6.
A system where a
set of accounts is kept for both financial and costing transactions is known as
…………………………..
7.
In the accounts
manual, processing of large mess of data under different accounts
heads are
made possible through
the use o
8.
Raw materials
issued to production but yet to reach the finished stage at period and is to be
found in which account?
9.
The conflict
between the profit figures arrived at under the financial account and cost
account ledger is settled by way of a ………
SOLUTION
(a) B
(b) C
(c) D
(d) E
(e) A
(f)
Integrated
Accounting Systems
(g) Accounts codes
(h) Work in progress account
(i)
Memorandum
Reconciliation Statement
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
Distinguish
between a Job Card and a Job Cost Card
A.
Job card is kept
for employees whilst Job Cost Card is kept for assets
B.
Job card is kept
on the shop floor whilst Job Cost Card in the cost office
C.
Job card is for
engineering jobs whilst Job Cost Card is for financial jobs
D.
Job card is for
jobs whilst Job Cost Card is for batches
E.
Job card is given
to the customer whilst Job Cost Card is kept by the company
2.
What are set-up
costs?
A.
cost of buying
equipment sets
B.
cost of
constructing the factory
C.
cost of setting
up production facilities for a particular job or production
D.
cost of laying
ambush for dishonest employees
E.
cost of
assembling factory operatives in readiness for production
3.
What is mark-up?
A.
A percentage of
total costs added as profit to determine the selling price
necessary
corrections is in progress.
Thanks.
B.
The distinctive
mark on packages to avoid mix-up
C.
The total selling
price of an order
D.
The total cost of
executing a Job
E.
The amount of
bonus to be given to those who worked on an order
4.
What is Notional
profit on contracts?
A.
The total profit
of the contractor for the years
B.
The amount
of profit to
be paid to
the
C.
The profit on the
mobilization fee received on a contract
D.
The amount of
profit brought forward from previous years
E.
The portion of
profit to be recognized on an ongoing contract at year end
5.
“Value of
work certified” in
contract mea
A.
Value of
materials used in the contract
B.
Total cost of
executing a contract
C.
Total progress
payments received on a contract
D.
The aggregate
total value of architect certificates issued so far
E.
Total value of
items sub-contracted on the main contract
6.
How is a job
identified among other jobs being carried out simultaneously in the accounts?
7.
What document
gives the value of contract completed on a progressive basis?
8.
Large jobs
usually of long
term duration
financial
year-end, and carried
out on the……...custome
9.
Where a company
decided to recognize total provisional profit on a contract almost fully
completed at its year end, what is the name given to the amount added to cost
to date to arrive at estimated total cost?
10.
An amount,
usually a small percentage of the total contract sum, withheld by the
contractee, for almost a year after the end of a contract as insurance against
possible
faults discovered
later is known
as…………..
SOLUTION
1.
B
2.
C
3.
A
4.
E
necessary
corrections is in progress.
Thanks.
5.
D
6.
Job Number or
Order Number
7.
Architect‟s certificate
8.
Contracts
9.
Cost to
completion
10.
Retention money
or fee
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
In process
costing, what does
“Abnormal L
A.
Stock stolen
during production
B.
Stock items given
out as gifts before full production
C.
The greater
of the present
production‟
D.
The greater of
actual process loss over what is deemed to be normal in the industry
E.
Losses in
production due to abnormal behavior of workers
2.
Joint products is
the name given to two or more
A.
main products
arising from the same process
B.
dissimilar
products manufactured from the same factory
C.
complementary
products that must be sold together
D.
raw materials
mixed together to manufacture a single item
E.
products which
work alike but are from different manufacturers
3.
What is scrap?
A.
Metal residue of
a production process
B.
Residues of
little or no value obtained during production
C.
Failed production
items
D.
Cleaning
materials
E.
Packaging
materials
4.
Explain “Net
inRealisablejointproductcosting
Value”
A.
Sales value less
cost of further processing before the point of separation
B.
Market value of
each of the joint products
C.
Sales value less
cost of further processing, selling and distribution after the split-off point
D.
Sales value less
cost of production up to the point of separation
E.
Sales value less
commission
5.
Which of these
statements is correct as far as process costing is concerned?
A.
Each process‟
output can be
sold witho
B.
Only the
materials introduced in process 1 is sufficient for the whole production
C.
Each
manufacturing process has normal gain
D.
Process costing
is not significantly different from contract accounting
necessary
corrections is in progress.
Thanks.
E. The output of
one process forms the input of another process
6.
In process
costing, partly completed units are calculated to represent fully completed
units based
on the percentage
of completi
7.
Where actual
process wastage is less than what is regarded as normal in the industry, the
difference is called…………………..
8.
A product of
lesser value incidentally produced during the manufacture of another product is
known as ………………………….
9.
The point during
the production process where two or more joint products assume
their individual
identities as called
………
10.
Where is the
total credit on Abnormal Gains Account transferred to at the end of the
accounting period?
SOLUTION
1.
D
2.
A
3.
B
4.
C
5.
E
6.
Equivalent units
7.
Abnormal Gain
8.
By-product
9.
Split-off-point
10. Profit & Loss Account
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
What is marginal
cost?
A.
Cost incurred
when increasing profit margin
B.
Total cost of
manufacture
C.
Cost of producing
an additional unit
D.
Cost of
manufacturing a new product
E.
Aggregate cost of
manufacturing diverse products
2.
What are period
costs?
A.
Costs incurred
during a stated period of production
B.
Costs incurred
during certain periods of the year
C.
Costs which
serves to enhance profitability
D.
Costs of
maintaining equipment during a period
E.
Costs incurred
during a period irrespective of production volume
3.
How does marginal
costing differ from absorption costing in stock valuation?
A.
Marginal costing
is only concerned with margins
B.
Absorption
costing uses LIFO
C.
Absorption costing
recognizes slow-moving stocks
D.
Marginal costing
uses total variable costs, writing off fixed assets
E.
Marginal costing
was FIFO
4.
What is
contribution?
A.
Total sales minus
total variable costs
B.
Total sales plus
total variable costs
C.
Total variable
costs plus total fixed costs
D.
Total fixed costs
minus profit
E.
Total sales plus
total fixed costs
5.
What is limiting
factor?
A.
The extent to
which the company may manufacture its products
B.
The factor of
production which is in short supply
C.
The limit to
which government may allow the company to manufacture
D.
The factor of
production which is most expensive
E.
The factor of
production which is easily obtainable
6.
Under absorption
costing, closing stocks
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
Which one of
these is NOT an assumption of Break-even analysis?
A.
Fixed costs
remain constant
B.
Variable costs
vary proportionally with volume
C.
There is no
synchronization between production and sales
D.
Costs can be
resolved into their fixed and variable components
E.
Selling price
does not change as volume changes
2.
What is margin of
safety?
A.
The amount by
which actual output/sales may fall short of the budget without incurring a loss
B.
The amount by
which budgeted output/sales may fall short of the actual without incurring a
loss
C.
The point where
actual output/sales agree with the budget
D.
The area
immediately preceding the break-even point
E.
The area where
fixed assets are equal to variable costs
3.
What happens at
the area before the break-even point?
A.
No profit, no
loss
B.
Marginal profit
C.
Huge profit
necessary
corrections is in progress.
Thanks.
D.
Loss
E.
No revenue
4.
The point
at which total
revenues equal t
5.
The number of
units of products to be sold to be able to break-even is regarded by the
formular ………….
6.
Break-even point
in Naira can be calculated by multiplying the break-even point in units with
……………………
SOLUTION
1.
C
2.
A
3.
D
4.
Break-even point
|
5.
|
Fixed Costs
|
|
|
|
|
|
|
Contribution
Per Unit
|
|
|
|
|
|
6.
Unit selling
price
MULTIPLE-CHOICE AND SHORT ANSWER QUESTIONS
1.
When are
attainable standards achievable?
A.
Under the best
possible conditions
B.
Under the most
possible conditions
C.
When there is no
idle time
D.
When the same
trends have been maintained over a long period of time
E.
When allowances
are made for normal losses and possible machine breakdown
2.
What is the
purpose of computing variances?
A.
To detect fraud
B.
To punish
inefficient managers
C.
To investigate
why standards are not met, and take corrective actions
D.
To maintain good
records
E.
To settle
long-standing issues
3.
What type of
variance can result from machine breakdown, power outages and work stoppages?
A.
Direct labour
efficiency variance
B.
Machine breakdown
variance
C.
Material wastage
variance
D.
Idle time
variance
E.
Electricity
wastage variance
4.
When we record
substantial favourable variances,
A.
it shows that we
are working hard
B.
we investigate
and break it down because it may be concealing some hidden weaknesses
C.
we give bonuses
to employees
D.
we raise the
standards
E.
we proudly
publish it for others to see
5.
If the cost of
investigating a particular variance is higher than the benefit to be derived
from it, …………….
A.
the investigation
is dropped
B.
we still go ahead
and investigate for the records
necessary
corrections is in progress.
Thanks.
C.
we keep the
investigation till the cases pile up
D.
we spread the
cost over a number of years
E.
the investigation
is done in piecemeal
6.
Standards which
can only be attained under the most favourable working conditions are called
………………………
7.
When actual costs
are compared with standard costs,
what r
8.
The official
document sowing the components of the standard cost of a product is known as
………………………….
9.
The addition of
direct material price variance and direct material usage variance gives us
………………………………………….
10.
The difference
between the standard direct labour rate and actual direct labour rate per
hour for
the actual total
hours worked an
SOLUTION
1.
E
2.
C
3.
D
4.
B
5.
A
6.
Ideal standards
7.
Variances
8.
Standard Cost
Card
9.
Direct material
cost variance
10.
Direct labour
rate variance
NOTE: This
is a work in progress. All topics in the
syllabus are covered but editing for
necessary
corrections is in progress.
Thanks.
7.
In most decision
making scenarios, marginal costing advises that the relevant cost is the
……………………………
8.
Under marginal
costing sales minus
variab
9.
What is the major
cause of differences in profit figures derived from profitability statements
using absorption costing and marginal costing?
10.
Based purely on
financial information, a company should manufacture more of products giving the
owardshighest the absorption …………….of its fixed assets and ultimately earning
profit.
SOLUTION
1.
C
2.
E
3.
D
4.
A
5.
B
6.
Fixed costs
7.
Variable cost
(marginal cost)
8.
Fixed Costs plus
profit
9.
Value of closing
stocks/Treatment of fixed costs
10.
Contribution
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