DEPARTMENT OF BUSINESS ADMINISTRATION C.

The store keeper

SCHOOL OF BUSINESS STUDIES D. The buyer
AUCHI POLYTECHNIC AUCHI 11. The thread use by a Tailor is ____ because ____
2016/2017 ACADEMIC SESSION A. Indirect material because is a common
ND II SECOND SEMESTER PROGRESS TEST. cost
1. The primary objective of cost accounting is to B. Overhead because the cost is immaterial
ascertain the…………… C. Indirect expenses because is very relevant
A. Cost of production and service render D. Is an expenses because is material
B. Cost of production only 12. The three basic elements of cost are:
C. The quantity and quality of production A. Material, labour & overhead cost.
D. The cost of sales B. Material, fixed assets and labour cost
Using the information below, answer question 2 to 5. C. Fixed assets, overhead cost and material
Carrying cost per item is N2, fixed ordering cost is N4, D. Chemical element and cost elements
Annual demand is 36units, maximum and minimum usage Using the information below, answer question 13 to 17
is 20units and 10units respectively while maximum and An item of PPE was acquired for N10,000 with a residual
minimum lead time is 3days and 2days respectively. value of N400 and an estimated useful life of 2 years.
2. What is the Economic order quantity units? 13. Using straight line method, what is year 1
A. 12 depreciation
B. 8.49 A. N4,800
C. 16.97 B. N4,600
D. 11 C. N5,000
3. What is the maximum stock level D. N3,000
A. 52 14. Using the reducing balance method, what is year 1
B. 62 depreciation?
C. 40 A. N8,000
D. 72 B. N8,600
4. What is the Re-order level C. N5,000
A. 60 D. N4,000
B. 40 15. Using the sum of the year digits method, what is
C. 30 year 1 depreciation?
D. 20 A. N6,400
5. What is the minimum stock level B. N9,600
A. 22.5 C. N4,000
B. 23 D. N4,000
C. 21.5 16. Using the reducing balance method, what is year 2
D. 21 depreciation?
6. ……is one of the advantage of centralize A. N1,600
purchasing? B. N2,600
A. Quantity discount is enjoyed C. N2,000
B. Timely delivery is ensured D. N3,000
C. Cash discount is receive 17. Using the sum of the year digits method, what is
D. Is highly recommended year 2 depreciation?
7. …is one of the advantage of decentralize A. N3,200
purchasing? B. N6,400
A. Timely delivery is ensured C. N5,000
B. Quantity discount is enjoyed D. N7,000
C. Cash discount is receive 18. Conversion cost comprises of:
D. Is highly recommended A. Labour cost and overhead cost
8. Overhead according to ICMA, is the aggregate of: B. Material cost and Machine cost
A. Indirect material cost, indirect labour cost C. Change of course to a new course
& indirect expenses. D. Material cost and expenses cost
B. Indirect material and overhead accounting. 19. Re-apportionment of service department overhead
C. Common cost of production to production department is to enable?
D. Per capital income A. Overhead absorption
9. The major difference between indirect material and B. Overhead allotment
indirect expenses is that: C. Overhead apportionment
A. Indirect expenses is intangible D. Combine cost
B. Indirect material is intangible 20. Which of the methods below of pricing material
C. Indirect expenses is a physical resource issues does not represent actual price
D. Indirect expenses is monetary A. Simple average
10. A waybill is prepared by : B. FIFO
A. The supplier C. LIFO
B. The purchase officer D. FIFO and LIFO