1) The labour engaged in the making of a product is known as _______
a. Direct labour
b. Indirect labour
c. Temporary labour
d. None of the above
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Answer
Explanation
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ANSWER: Direct labour
Explanation:
No explanation is available for this question!
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2) If labour time is based on the maximum efficiency, the unit cost will be
a. Higher
b. Lower
c. Equal
d. None of the above
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Answer
Explanation
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ANSWER: Equal
Explanation:
No explanation is available for this question!
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3) Which of the following standards cannot be used for cost control?
a. Basic Standard
b. Normal Standard
c. Both a and b
d. None of the above
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Answer
Explanation
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ANSWER: Both a and b
Explanation:
No explanation is available for this question!
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4) When standard costs are used, the amount of detailed record keeping will normally
a. Reduce
b. Increase
c. Stay the same
d. None of the above
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Answer
Explanation
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ANSWER: Reduce
Explanation:
No explanation is available for this question!
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5) Which of the following statements are true about standard labour time?
a. Standard labour time indicates the time in hours needed for a specified process
b. It is standardized on the basis of past experience with no adjustments made for time and motion study
c. In fixing standard time due allowance should not be given to fatigue and tool setting
d. The Production manager does not provide any input in setting the labour time standards
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Answer
Explanation
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ANSWER: Standard labour time indicates the time in hours needed for a specified process
Explanation:
No explanation is available for this question!
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6) ______ is responsible for setting up of materials price standard.
a. Production department
b. Engineering department
c. Purchase department
d. None of the above
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Answer
Explanation
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ANSWER: Purchase department
Explanation:
No explanation is available for this question!
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7) While determining material quantity standards, a proper consideration should be assigned to
a. Normal material wastage
b. Abnormal material wastage
c. Both a and b
d. None of the above
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Answer
Explanation
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ANSWER: Normal material wastage
Explanation:
No explanation is available for this question!
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8) Setting of standards are classified on the basis of only price.
a. True
b. False
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Answer
Explanation
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ANSWER: False
Explanation:
No explanation is available for this question!
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9) Standard costing committee is responsible for
a. Computation of variances
b. Linking the deviations with responsibilities
c. Setting all types of standards
d. All of the above
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Answer
Explanation
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ANSWER: All of the above
Explanation:
No explanation is available for this question!
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10) Which of the following statements are not true about normal standards?
a. Normal Standards are meant to smooth out fluctuations caused by cyclical and seasonal changes
b. Normal Standards can be applied for absorption of overheads for a long period of time
c. In establishing normal standards, allowance is given to normal fatigue and breaks, and normal waste and scrap
d. None of the above
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Answer
Explanation
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ANSWER: None of the above
Explanation:
No explanation is available for this question!
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