Cost Accounting Important Multiple Choice questions (MCQs) B.COM (Hons) : Gauhati University Cost Accounting Important MCQS, Dibrugarh University Cost Accounting Important MCQS, Ravindranath Tagore University Cost Accounting Important MCQS,Cost Accounting Important Multiple Choice Questions Answers.
In this article you will get very very Important Cost Accounting Unit-3 Element Of Cost : Labour MCQS for B.com (Hons). Which can be Very Useful for scoring a good marks in your Semester & Sessional Exams Conduct by Colleges/Universities.
COST ACCOUNTING MCQS
Unit 3
ELEMENT OF COST : LABOUR
Q 1 (A). Fill in the blanks with appropriate word or words:
(i) Wages under piece rate system are paid according to the_____ of work done.
Ans: Volume
(ii) Cost of abnormal idle time is transferred to______.
Ans: Costing profit and loss account (iii) Wages sheet is prepared by_____department.
Ans : Payroll department
(iv) Cost of normal idle time is charged to_____.
Ans: Factory overhead/production overhead
(v) Idle time arises only when workers are paid on_____ basis.
Ans: Time
(vi) The formula for computing wages under time rate is_____.
Ans: Time taken x Time rate
(vii) In_____system, basis of wages payment is the quantity of work done.
Ans : Piece rate
(viii) In_____system, two piece rates are set for each job.
Ans: Differential
(ix) In Halsey Plan, a worker gets bonus equal to ______of the time saved.
Ans: 50%
(x) The technique of evaluating employee's performance is known as_____.
Ans: Merit rating
(xi) The scheme of wages payment under which the result of efficiency is shared by employer and employee on some agreed basis is known as______.
Ans: Incentive Plan Scheme
(xii) Difference between time clocked and time booked is known as_____.
Ans: Idle time
(xiii) Job evaluation is a method of evaluating the job in terms its_____.
Ans: Money value
Q. 1 (B) Choose the correct alternative from the following statements:
(i)Wage sheet is prepared by the____.
(a) Personal department
(b) Payroll department
(c) Engineering department
(d) Time keeping department
Ans: (b) Payroll department
(ii) For a work order the standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour. Total wages payable under Rowan Premium Plan will be:
(a) Rs. 37.50 (c) Rs. 27.50
(b) Rs. 47.50 (d) Rs. 17.50
Ans: (a) Rs. 37.50
(iii)The time for which the employer pays, but from which he obtains no production is called ____.
(a) Idle time
(b) Abnormal idle time
(c) Normal idle time
(d) None of above
Ans: (a) Idle time
(iv)Which of the following statement is correct?
(a) Abnormal idle time wages are included in the cost production.
(b) Total labour cost can be reduced by recruiting cheap labour.
(c) Fringe benefits are labour related cost.
(d) Premium bonus plan do not reduce workers to increase efficiency.
Ans: (c) Fringe benefits are labour related cost.
(v) Time and motion study is conducted by_____.
(a) Personal department
(b) Payroll department
(c) Engineering department
(d) Time keeping department
Ans: (c) Engineering department
(vi) Labour turnover rate is calculated by____
(a) Number of workers left / average number of workers.
(b) Number of additions / average number of workers.
(c) Number of workers replaced / average number of workers.
(d) None of the above
Ans : (c) Number of workers replaced / average number of workers.
(vil)Which of the following methods of wage payment do not guarantee a minimum wage to worker?
(a) Halsey premium plan
(b) Bedeaux point plan
(c) Taylor's differential plan
(d) Rowan premium plan
Ans: (c) Taylor's differential plan
(viii) Cost of idle time arising due to non availability of raw material is:
(a) Charged to costing profit and loss account
(b) Charged to factory overhead rate
(c) Recovered by inflating the wage
(d) None of the above
Ans: (a) Charged to costing profit and loss account
(ix) Idle time is ____.
(a) Time spent by workers in factory
(b) Time spent by workers in office
(c) Time spent by workers off their work
(d) Time spent by workers on their job Ans: (c) Time spent by workers off their work
(x) Overtime is___
(a) Actual hours being more than normal time
(b) Actual hours being more than standard time
(c) Standard hours being more than actual hours
(d) Actual hours being less than standard time
Ans: (a) Actual hours being more than normal time
(xi) Time keeping refers to____
(a) Time spent by workers on their job
(b) Time spent by workers in factory
(c) Time spent by workers without work (d) Time spent by workers in office
Ans: (b) Time spent by workers in factory
QI(C). State whether the following statements are true or false :
(1) A good system of wage payment should not ensure equal pay for equal work.
Ans: False
(ii) Time and motion study is conducted by payroll department.
Ans: False
(ii) Taylor's differential piece rate does not guarantee minimum wages
to worker.
Ans: True
(iv) Cost of idle time due to strike should be treated as factory overhead.
Ans: False
(v) Cost of normal idle time is charged to cost of production.
Ans: True
(vi) Idle time is the difference between time clocked and time booked.
Ans: True
(vii) Outworkers are those who are sent to sites or customer's premises for performing work.
Ans: True
(viii) The two principle of wages payment are payment on the basis of
time and payment on the basis of work done.
Ans: True
(ix) The piece rate system of wage payment can not be successfully
applied where quantity of output can be measured.
Ans: False
(x) Idle time arises only when workers are paid on time basis.
Ans : True
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