CMA Final Corporate Laws (Paper 13) - MCQs & High-Yield Practice Questions

Verified Evidence from Paper 8: Cost Accounting (CA) (Page 433)

425 The Institute of Cost Accountants of India Method of Costing A. 200 B. 220 C. 80 D. None of the above Answer: 1 D 2 B 3 B 4 A 5 C 6 D 7 C 8 C 9 B 10 C 11 C 12 D 13 B 14 D 15 B 16 D 17 C 18 B 19 D 20 C 21 C 22 C 23 A 24 C 25 B 26 C 27 C 28 C 29 D 30 C 31 C 32 B 33 B 34 A 35 A 36 D 37 D 38 B 39 B 40 B 41 C 42 A Hint MCQ 37 - calculate percentage completion which will come as 56%. Then, Since the contract is 56% complete and no difficulties are foreseen, a profit can reasonably be taken. Profit to be taken = 56% × final contract profit = 56% × (11200,000 – 6720,000) = 25,08,800 MCQ 38 - Production overheads absorption rate = 240,000/30,000 = 8 per labour hour Other overheads absorption rate = ( 150,000/ 750,000) × 100% = 20% of total production cost Then, Do per unit cost sheet. MCQ 39 - The most appropriate cost unit is the tonne-mile. Therefore, the cost per unit = 562800/35520= 1.50 MCQ 40 - Cost per unit in closing inventory = (4.50 + 1.25 + 2.50) = 8.25 Number of units in closing inventory = 13,500 – 11,750 = 1,750 units ∴ Value of closing inventory = 1,750 units × 8.25 = 14,437.50 MCQ 42 Normal loss = 10% × input = 10% × 10,000 kg = 1,000 kg When scrap has a value, normal loss is valued at the value of the scrap i.e., 20 paisa per kg. Normal loss = 0.20 × 1,000 kg = 200

Source Citation: Paper 8: Cost Accounting (CA), Page 433