Question 01: Select the best answers for thefollowing questions:

1. Sales price – Variable Prime cost – Variable FOH per unit

a) Factory cost b) Contribution margin

c) Common cost share d) Margin of safety

2. is the FOH rate applied to the whole production facility

a) Predetermined FOH rate b) Blanket FOH rate

c) Budgeted FOH rate d) Both (a) & (c)

3. The completion percentage for previous department in EPQ isusually

a) 50% b) 100%

c) More than 50% but less than 100% d) 75%

4. If margin of safety is $2,000 and breakeven sales are 5,000units then planned sales are

a) $7,000 b) $2,000

c) 60% d) None of these

5. Is usually not allocated any cost injoint product costing approach

a) By-product b) Low quality joint product

c) Low quantity joint product d) Further processed product

6. In breakeven chart the area below the breakeven pointreflects

a) Profit b) Loss

c) Variable cost d) Revenue

7. If planned sales are 500 units & breakeven sales are 200units then MOS ratio =

a) 50% b) 60%

c) 70% d) 80%

8. Total Factory Cost = Prime Cost + Conversion Cost -

a) FOH b) Indirect labor

c) Direct Labor d) Both (b) & (c)

9. In decision making & CVP analysis sunk cost is

a) Relevant cost b) Avoidable cost

c) Un-avoidable cost d) Irrelevant cost

10. If per unit contribution margin is $2.5 & fixed costs are$30,000 breakeven point in units is

a) 75,000 b) 12,000

c) 63,000 d) None of these