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CA Final Cost Accounting — practice questions

Explore 44 free Cost Accounting questions in CA Final Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Cost Accounting questions and exercises with answers

Showing questions 1–30 of 44.

A firm sells goods for Rs 8,00,000 and its totally variable cost is Rs 3,20,000. What is throughput?Read the answer and worked solution →A bottleneck item sells for Rs 90, materials Rs 30, and takes 2 bottleneck minutes. Throughput per minute?Read the answer and worked solution →P: price Rs 120, materials Rs 45, 5 bottleneck minutes. Q: Rs 90, Rs 30, 2 minutes. Priority?Read the answer and worked solution →Return per factory hour is Rs 180 and cost per factory hour is Rs 120. What is the throughput accounting ratio?Read the answer and worked solution →A product shows a throughput accounting ratio of 0.8. Its return per factory hour isRead the answer and worked solution →In throughput accounting, when does throughput arise?Read the answer and worked solution →How does the theory of constraints recommend valuing inventory?Read the answer and worked solution →For physical products, operating expense excludes which item?Read the answer and worked solution →In throughput accounting, money tied up in inventory and machinery is calledRead the answer and worked solution →Whose critique of labour efficiencies underlies throughput accounting?Read the answer and worked solution →A unit has variable cost Rs 500. Fixed cost is Rs 20,000 a month and 200 units are made. Full cost per unit?Read the answer and worked solution →Variable cost is Rs 50 a unit and fixed cost is Rs 30,000. What is full cost per unit at 300 units?Read the answer and worked solution →Variable cost is Rs 120 and fixed cost Rs 18,000. Output rises from 150 to 300 units. Unit cost falls byRead the answer and worked solution →A selling price above variable cost makes what for the business?Read the answer and worked solution →Which is an indirect material?Read the answer and worked solution →The cost of catalogues and advertising belongs to which overhead?Read the answer and worked solution →Depreciation of plant and equipment behaves as aRead the answer and worked solution →Which is a classification of cost by function?Read the answer and worked solution →Cost accounting is mainly concerned with information for whom?Read the answer and worked solution →The growth of which industries made fixed costs more important by the late nineteenth century?Read the answer and worked solution →Standard cost accounting was introduced in which decade?Read the answer and worked solution →Who foresaw standard costing in his 1889 textile bookkeeping work?Read the answer and worked solution →Standard price Rs 40 a kg, actual price Rs 43, 1,000 kg bought and used. Material price variance?Read the answer and worked solution →Output allows 950 kg at standard Rs 40 a kg, but 1,000 kg were used. Material usage variance?Read the answer and worked solution →Standard cost of actual output is Rs 38,000. Actual use was 1,000 kg at Rs 43. Total material variance?Read the answer and worked solution →Standard wage rate is Rs 150 an hour but Rs 140 was paid for 500 hours. Labour rate variance?Read the answer and worked solution →Output allows 480 labour hours at Rs 150, but 500 hours were worked. Labour efficiency variance?Read the answer and worked solution →When actual results are better than expected, the variance is calledRead the answer and worked solution →A material cost variance is usually split into which two parts?Read the answer and worked solution →Standard price Rs 25, actual Rs 22, actual use 800 kg, allowed 780 kg. Net material cost variance?Read the answer and worked solution →

Worked practice questions

A firm sells goods for Rs 8,00,000 and its totally variable cost is Rs 3,20,000. What is throughput?

  1. Rs 3,20,000
  2. Rs 1,60,000
  3. Rs 8,00,000
  4. Rs 4,80,000
Show answer and solution

Correct answer: D. Rs 4,80,000

Throughput is sales less totally variable cost, so 8,00,000 minus 3,20,000 gives 4,80,000.

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A bottleneck item sells for Rs 90, materials Rs 30, and takes 2 bottleneck minutes. Throughput per minute?

  1. Rs 15
  2. Rs 45
  3. Rs 60
  4. Rs 30
Show answer and solution

Correct answer: D. Rs 30

Throughput is 90 minus 30, which is 60, and spread over 2 minutes it is Rs 30 a minute.

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P: price Rs 120, materials Rs 45, 5 bottleneck minutes. Q: Rs 90, Rs 30, 2 minutes. Priority?

  1. Neither, they are equal
  2. P, Rs 15 a minute
  3. P, higher selling price
  4. Q, Rs 30 a minute
Show answer and solution

Correct answer: D. Q, Rs 30 a minute

P earns 75 over 5 minutes, Rs 15 a minute, while Q earns 60 over 2 minutes, Rs 30 a minute.

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More Cost and Management Accounting topics

Specialist Cost Management TechniquesCost Volume Profit Analysis and Pricing DecisionsActivity-Based Costing and ManagementStrategic Performance MeasuresLean Manufacturing and KaizenIntroduction to Strategic Cost ManagementTotal Quality ManagementStrategic Performance Management