All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making - II - Question Paper
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(c) Treating product cost as an independent variable during the definition of a product’s requirements
(d) Proactively working to achieve target cost during product and process development
(e) Treating product cost as a dependent variable during the definition of a product’s requirements.
( 1 mark)
37. Which of the subsequent items would be treated as an indirect cost in manufacture of a chair?
(a) Wood used to make a chair
(b) Metal used for the legs of a chair
(c) Fabric to cover the seat of a chair
(d) Staples to fix the fabric to the seat of a chair
(e) Leather used for making handles of a chair.
( 1 mark)
38. During the year 2006-07, Metro Ltd., produced 14,500 units with the total cost of Rs.2,68,100. In the year 2007-08 it increased its production to 16,000 units. The total cost of production has been increased by Rs.19,200 from the total cost of 2006-07. The variable cost per unit during the year 2007-08 was
(a) Rs.10.20
(b) Rs.12.20
(c) Rs.11.80
(d) Rs.12.80
(e) Rs.10.80.
( 1 mark)
39. Which of the subsequent statements is true?
(a) Marginal costing and absorption costing are the identical
(b) In marginal costing technique, profit is the difference ranging from sales and marginal cost
(c) If marginal costing technique is used, only variable costs are charged to products
(d) In marginal costing, under or over absorption of fixed overheads is bound to arise
(e) In marginal costing technique, a portion of fixed overheads is carried over to the next period.
( 1 mark)
40. Mirind Ltd. has furnished the subsequent info pertaining to its production:
Normal capacity 80,000 units
Increase in inventory 3,650 units
Variable cost per unit Rs.18
Selling price per unit Rs.50
Fixed manufacturing overhead costs Rs.9,60,000
If the profit under Absorption costing method is Rs.88,200, the profit under Marginal costing method would be
(a) Rs. 53,160
(b) Rs. 44,400
(c) Rs.1,32,000
(d) Rs.1,23,240
(e) Rs. 35,040.
( 2 marks)
41. Which of the subsequent costs is not considered as a product cost under Absorption costing as well as Direct costing?
(a) Freight-in
(b) Direct labor cost
(c) Insurance of factory
(d) Manufacturing supplies
(e) Shipping cost.
( 1 mark)
42. Full-cost price is described as
(a) The price usually based on absorption costing
(b) The price usually based on marginal costing
| Earning: Approval pending. |
