1.

Which of the following has ascertainment of cost as its objective

a.Budgetory control b. Cost accounting c.financial accounting d.management
accounting
2. Which of the following is true of cost accounting information
a.it is directed as internal users b.it is directed as external users c.it is available after
audit is completed directed d.it reports to bankers
3. Which of the information below is true?cost of goods produced include
I.direct material II.direct labour II.factory overhead a.I and II only b.I and III only
c.II and III only d. I , II and III
4. The process of grouping cost according to their common characteristics is a.
Ascertainment b.classification c.identification d.separation
5. Which of the following is a classification of cost according to element? a. Direct cost
and indirect cost b.fixed cost and variable cost c.material cost , labour cost and
expenses
6. which of the following is a direct production cost? A. Royalties paid b. Factory rent
c.Depreciation d. Supervisors salary
7. The process of distributing overheads to service and production cost center is
a.apportionment b. Allocation c.absorbtion d. Allotment
8. The process of counting physical stock yearly or twice a year is called a.periodic
stock taking b.continious stock taking c. Two bin system d. Tally card
9. The stock level at which replenishment is necessary is the a.Minimum stock level
b. Maximum stock level c. Economic order quantity d.Re order level
10. Which of the following is an overhead ?
a.indirect material b. Direct materials c. Direct labour d. Prime cost
11. Which of the following is not an objective of cost accounting?
a. To determine the cost of a product
b. To serve as guide to price fixing
c. To reveal profitable and unprofitable activities
d. To guide potential investors
12. The process of determining the cost of a product is called
a. Cost ascertainment b.cost apportionment c. Conversion cost d. Planning
13.Cost which can be easily traces to a particular Cost centre or cost unitIs called.
a.indirect cost b.period cost c.direct cost d. Fixed cost
14.The following are all methods used for calculating bonus except.
a. halsey scheme b.Rowan method c. Halsey weir d. Time rate
15.The process of collecting cost data in an organised way through an accounting system
is termed as.
a.cost apportionment b.cost centre c.cost accumulation d.cost object
16.which of the following is not an overhead absorption rate
a. Prime cost percentage b.direct labour hour Rate c. Machine hour Rate d. Time rate
17.Which of the following is not a document used for stores records?
a.bin card b.Time sheet c.stires ledger card d.stock verification card
 18.The following methods used in RE distributing service department costs to
production department accept.
a.direct distribution b.continious distribution c.algebraic method d.halsey method
19.Minimum stock level. Is sometimes referred to us.
a. Reorder quantity b.danger level c. Buffer stock d. reorder quantity.
20.Which of the following firms use job costing in its operation? a.carpentary b.Hospitals
c. breweries d.transport firms.
21.The costs That has actually been in incurred is a.prime cost b. historical cost c.Past
cost d. avoidable costs.
22.Production. Selling and distribution overheads. Are examples of classification by
a. Behaviour b.Element. c. function. d. Nature.
23.Which of the following is not a component of prime cost
a.cost of special design b. lubricating oil c. Cost of raw materials d. royalty paid
24.Which of the following refers to the total earnings of employee
a.gross wages b.net wages c. allowance d.bonus
25.Salary of supervisor in production department is classified as
a. indirect wages b.indirect expenses c.direct wages d.cost centre
26.The period where workers are paid for not working due to machine breakdown is
a.idle time b.lead time c.overtime d.time rate
Use the following information to answer questions 27-29
Consumption 50 -100 units
Lead time 2-4 days
Re-order Quantity 2500units
27. The re-order level is......
a.400units b.300units c.225units d.150 units
28.what is the maximum stock level
a.2800units b.2750units c.2700units d.2675 units
29.which of the following is a statutory deduction on employee’s payroll
a.union dues b.provident fund c.income tax d.salary advance
30.The appropriate basis for apportioning cost of rent and rates is...
a. floor space b.value of equipment c.number of employees d.meter reading

Use the following information to answer questions 31-33

Mrs Bench produce 40 units within 10 hours, the time allowed by management for the
completion of the job is 14 hours. it is the policy of management to pay 6/hour. using Halsey

31. His basic pay is ......

a. Ghc 70 b. Ghc 72 c. Ghc 60 d. Ghc62

32.His bonus is .......

a. GHC12 B. GHC10 C. GHC 8 d.GHC6

33. His total remuneration is......

a. GHC 60 b. GHC 62 GHC 70 GHC 72

 Section B

Answer two questions only from this section

1A explain the term overhead

explain the following

I. overhead allocation
II. overhead apportionment
III. overhead absorption

C.Identify 5 factory overheads and state the appropriate business of apportionment of each

2.a.what is labour cost

B.state for differences between direct labour and indirect labour

c.Explain two reasons why a company will introduce a bonus scheme for its employees

3.a.What is time keeping

b. Explain the hand written method of time keeping and give three examples

c.Explain the following

I. time taking

I I. time allowed

I I I. time saved

d.What is payroll accounting

d.i. Identify for items found on pay slip

SECTION C

Question one

the company has three production department and two service department distribution summary
of overheads is as follows

production department:

A 13,600

B 14,700

C 12,800

service department:

X 9000

Y 3000

The total overheads of service department a charged on basis which is as follows

A B C X Y Depart. ; X 40% 40% 30% - 10%

 Y 30% 30% 20% 20% -

You are required to apportion the course of service department by using the repeated distribution
method.(Run all decimals to the nearest whole number)

Question 2

The following relates to the earnings of five employees of a firm

Name of employees Hours worked Rate per hour(GHC)

Kwesi 300 40
Kojo 150 30
Kwabena 350 20
Kwaw 125 50
Kofi 400 20

You are given the following additional in formation

a. Nontaxable rent allowance enjoyed by all employees is 10% of basic earnings

b. All employees contribute 5% of basic earnings to Social Security fund
c. Health insurance is GHC 20 for all employees this is not subject to tax
d. Kwabena and kwaw contribute GHC10 each to social club as dues
e. Income tax is 10%

You are required to prepare payroll for the month.

question 3

calculate 6 different absorption rates forecast centre Bk3 bees on the budgeted data below

Labour hours for the peri 250,000hrs

total wages for the period 700,000

Total machine hours for the period 560,000hrs

Total direct material cost for the period GHC1,200,000

Total units produced for the period 50,000 units

total overhead for the period GHC 2,500,000

B. A cost unit has been produced in cost centre BK3 and the following details are recorded

Direct material use GHC 3000

Direct wages GHC 3500

machine hours 1700hrs

Calculate the cost of the unit above using machine hour rate
Good luck