PSU Test 1

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Total Number of Question: 40

Time: 41 Minutes

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Phone No

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1. Which of the following items are not included in Cost Sheet?

Bank Interest

Cash Discount

Donations

All of the above

2. Prime cost may be correctly termed as:

The sum of direct material and labour cost with all other cost excluded

The total of all cost items which can directly charge to product items.

The total cost incurred in producing a finished unit

The sum of the large costs in a product cost

3. Sales, Opening Stock and Closing Stock are ₹ 2,40,000, ₹ 36,000 and ₹ 45,000 respectively. If the rate of G.P on cost of goods sold is 25%, then the amount of purchases will be:

₹ 1,83,000

₹ 1,92,000

₹ 2,01,000

₹ 1,89,000

4. From the following information, find out purchases of raw material when raw material consumed is ₹ 26,500; closing stock ₹ 4,500 and opening stock ₹ 3,000.

₹ 29,500

₹ 31,000

₹ 28,000

₹ 34,000

5. Direct Material and Direct Wages are ₹ 2,32,000 and ₹ 2,05,000 respectively. If the ratio of direct wages and factory overhead is 5:3 then Factory Cost will be:

₹ 4,37,000

₹ 5,60,000

₹ 7,78,667

₹ 5,46,667

6. Prime cost-plus factory overheads is known as

Marginal Cost

Conversion Cost

Commercial Cost

Factory Cost

7. Which costing method is used by Spare-parts manufacturing industry?

Process Costing

Job Costing

Batch Costing

Absorption Costing

8. Which of the following is not a relevant cost?

Replacement Cost

Sunk Cost

Marginal Cos

Opportunity Cost

9. Cost of rectification of defective articles are treated as:

Production Overhead

Distribution Overhead

Selling Overhead

Administrative Overhead

10. Which of the following would be classified as indirect labour?

Assembly workers in a company manufacturing unit

An audit clerk in a auditors' firm

Stores assistant in a factory store

Masons in a construction company

11. Cost of free samples and gifts are included in:

Prime Cost

Factory Overhead

Office and Administrative Overheads

Selling & Distribution Overheads

12. Which one is False?

Fixed costs per unit increase with increase in output

Out of pocket costs involve payment to outsiders

Rent on own building is imputed cost

Tender is an estimation of selling price

13. CAS-16 is related to:

Cost Accounting Standard on Depreciation and Amortisation

Cost Accounting Standard on Joint Costs

Cost Accounting Standard on Quality Control

Cost Accounting Standard on Overburden Removal Cost

14. Wages for abnormal idle time are charged to:

Production Cost

Job Cost

Abnormal Overhead

Costing Profit and Loss Account

15. Which statement is not True?

Replacement cost is the current market cost of replacing an asset or a material

Cost accounts provide information for determination of profit or loss

Bad debts, legal charges for recovery of debts are considered as selling & distribution expenses

Imputed costs are hypothetical cost

16. Which Article in the Constitution of India, 1950 has provisions for introduction of a bill in the Parliament of India?

Article 119

Article 141

Article 107

Article 243

17. Money Bill is introduced in which House of the Parliament?

Council of People - Lok Sabha

Council of States - Rajya Sabha

Both the Houses

None of the Houses

18. The essence of Sub-Ordinate legislation can be found in which Article of the Constitution of India, 1950?

Article 12

Article 32

Article 13

Article 14

19. Which is the highest civil court in a district?

Sessions Court

Supreme Court of India

District Court

High Court

20. When was the Supreme Court of India established?

26 th November 1949

26 th January 1950

28 th January 1950

1 st October 1937

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