This topic helps you to prepare the mgt402 quiz 2 solution with an answer that will be beneficial in test and exam paper preparation.

MGT402 Quiz 2 Solved

1) Company A’s fixed costs were Rs 45,000, its variable costs were Rs,24,000, and its sales were Rs, 80,000. What is the company’s break-even point in sales Rs

1. Rs 79,000
2. Rs 57,000
3. Rs 33,000
4. None of the given options

2) Net income reported under direct costing will exceed net income reported under absorption costing for a given period if:

1. The fixed overhead exceeds the variable overhead
2. Sales exceed production for that period
3. Production exceeds sales for that period
4. Production equals sales for that period

3) Which of the following concepts is used in absorption costing

1. Matching concepts
2. Cost concepts
3. Cash concepts
4. All of the given options

4) Railway product Ltd. makes one product that sells for Rs. 72 per unit. Fixed costs are Rs 81,000 per month and contribution to sales ratio is 37.5% in a period when actual sales were Rs. 684,000 the company’s unit margin of safety was:

1. 4,000 units
2. 4,800 units
3. 6,500 units
4. 5,500 units

5) Contribution margin contributes to meet which one of the following options

1. Operating cost
2. Variable cost
3. Net profit
4. Fixed cost

6) What will be the total amount of cost transferred to next department under FIFO method, if, cost associated with total 100 completed units, 500 opening WIP units & 300 closing WIP units is given as Rs. 2,500, Rs.4,500 and Rs. 9,500

1. Rs. 14,000
2. Rs. 12,000
3. Rs. 16,500
4. Required more information to find the answer

7) If joint products are to be processed further beyond the paint of separation, costs should be assigned to the products on the basis of:

1. Ultimate sales
2. An engineering analysis
3. A physical unit of measure
4. Adjusted sales value

8) The point at which the cost line intersects the sales line will be called:

1. Break Even sales
2. Contribution margin
3. Budgeted sales
4. Margin of safety

9) In order to compute equivalent units of production, which of the following must be reasonably estimated

1. Units
2. The percentage of completion
3. Direct material cost
4. Unit started and completed

10) In a job order cost system, the use of direct materials would be recorded as a debit to:

1. Finished Goods inventory
2. Manufacturing Overhead
3. Raw Materials inventory
4. Work in Process inventory

If you found any mistake in the mgt402 quiz or need help then comment below.

Share with fellows.