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CA Final Cost Accounting — practice questions — page 2

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 31–44 of 44.

Standard is 8 hours at Rs 50 per unit and 100 units are made using 780 hours at Rs 52. Efficiency variance?Read the answer and worked solution →Standard cost methods are criticised for stressing which efficiency?Read the answer and worked solution →How is a target cost obtained?Read the answer and worked solution →A product sells at Rs 800 and must earn Rs 180. Present cost is Rs 700. Cost reduction needed?Read the answer and worked solution →Target costing plans costs out of a product duringRead the answer and worked solution →A plant tracks its monthly defect rate. Which scorecard perspective fits it?Read the answer and worked solution →Hours of staff training per year fit which scorecard perspective?Read the answer and worked solution →Customer retention rate fits which scorecard perspective?Read the answer and worked solution →The Analog Devices scorecard was created by Art Schneiderman inRead the answer and worked solution →The balanced scorecard was originally designed mainly forRead the answer and worked solution →Cost of a transferred item is Rs 800 and the cost-plus markup is 25% on cost. Transfer price?Read the answer and worked solution →Resale price is Rs 1,200 and the distributor's gross margin is 20% of resale price. Transfer price?Read the answer and worked solution →Which is a recognised transfer pricing method?Read the answer and worked solution →US regulations test an arm's length range using which measure?Read the answer and worked solution →

Worked practice questions

Standard is 8 hours at Rs 50 per unit and 100 units are made using 780 hours at Rs 52. Efficiency variance?

  1. Rs 1,000 adverse
  2. Rs 1,560 adverse
  3. Rs 560 adverse
  4. Rs 1,000 favourable
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Correct answer: D. Rs 1,000 favourable

Allowed hours are 800 and only 780 were used, saving 20 hours at Rs 50, which is 1,000 favourable.

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Standard cost methods are criticised for stressing which efficiency?

  1. Machine
  2. Labour
  3. Capital
  4. Energy
Show answer and solution

Correct answer: B. Labour

Standard methods keep emphasising labour efficiency although labour is no longer the dominant manufacturing cost.

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How is a target cost obtained?

  1. Price less desired profit
  2. Cost plus desired profit
  3. Price plus desired profit
  4. Cost less market price
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Correct answer: A. Price less desired profit

A target cost is set by subtracting the desired profit margin from a competitive market price.

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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