1. Stock Control data for Material P are:
Annual usage: 3600 units; Cost per unit: ?100; Cost of placing an order: ?40;
Stockholding Cost: 20% of the overall stock volume; Lead time: One month
The EOQ based on the above data is:

2. In the context of Critical Path Analysis, the portion of the float of an activity which cannot be consumed without affecting adversely the float of the subsequent activities is called

3. A company has a break even point when sales are Rs 3,20,000 and variable cost at that level of sales are ??2,00,000. How much would contribution margin increase or decrease if variable expenses are dropped by ???30,000?

4. X is a factory making a certain product where learning curve ratio of 80% and 90% apply respectively for two equally paid workers, A and B

5. A company operates throughput accounting system. The details of product X per unit are as under.
Selling Price ?50
Material Cost ?20
Conversion Cost ?15
Time on bottleneck resources 10 minutes
The return per hour for product X is:

6. Which of the following is not a term normally used in value analysis?

7. In a PERT network, the optimistic time for a particular activity is 9 weeks and the pessimistic time is 21 weeks. Which one of the following is the best estimate of the standard deviation for the activity?

8. A company is to market a new product. It can produce up to 1,50,000 units of this product. The following are the estimated cost data:
Fixed Cost - Variable Cost
For Production upto 75,000 units ? 8,00,000 60%
Exceeding 75,000 units ?12,00,000 50%
Sale price is expected to be ?25 per unit. How many units must the company sell to break even?

9. A company has forecast sales and cost of sales for the coming year as ?25 lakhs and ?18 lakhs respectively. The inventory turnover has been taken as 9 times per year. In case the inventory turnover increases to 12 times and the short term interest rate on working capital is taken as 10%, what will be saving in cost?

10. Empire Hotel has a capacity of 100 single rooms and 20 double rooms. Average occupancy is 70% for 365 days of the year. The rent for a double room is kept at 130% of a single room. The total room occupancy days in a year in terms of single room is

11. A factory has a key resource (bottleneck) of Facility A which is available for 31,300 minutes per week. The time taken by per unit of Product X and Y in Facility A are 5 minutes and 10 minutes respectively. Last week

12. In calculating the life cycle costs of a product, which of the following items would be included?
A. Planning and concept design costs
B. Preliminary and detailed design costs
C. Testing costs
D. Production costs E. Distribution costs

13. S Ltd. manufactures a product whose time for the first unit is 1000 hours. It experience a learning curve of 80%, What will be the total time taken in hours for unit 5 to 8?

14. A company operates an activity based costing (ABC) system to attribute its overhead costs to cost objects. In its budget for the year - ending 31st August, 2018. The company expected to place a total of 2000 purchase orders at a total cost of ?1,00,000. This activity and its related costs were budgeted to occur at a constant rate throughout the budget year which is divided into 13 four week periods. During the four week period ended 30th June 2017, a total of 200 purchase orders were placed at a cost of ?9,000. The over recovery of these costs for the four week period was

15. When is market skimming pricing appropriate?

16. A company operates a standard absorption costing system. The budgeted fixed production overheads for the company for last year were 3,30,000 and budgeted output was 2,20,000 units. At the end of the company

17. Which of the following would take place if a company is able to reduce its variable cost? Contribution Margin - Break-Even Point

18. If the time taken to produce the first unit of a product is 4000 hrs, what will be the total time taken to produce the 5th to 8th unit of the product, when a 90% learning curve applies?

19. A particular job required 800 kgs of material

20. A company makes and sells a single product. The selling price and marginal revenue equations are:
Selling Price = ?50 - ?0.001X
Marginal Revenue = ?50 - ?0.002X
Where X is the product the company makes. The variable cost amount to 20 per unit and the fixed costs are ?1,00,000. In order to maximize the profit, the selling price should be

21. Which of the following is correct in the context of network analysis?

22. Which of the following is NOT a method of transfer pricing?

23. If the direct labour cost is reduced by 20% with every doubling of output, what will be the cost of labour for the sixteenth unit produced as an approximate percentage of the cost of the first unit produced?

24. An organisation is considering the costs to be incurred in respect of a special order opportunity. The order would require 1,250 kgs of material D. This is a material that is readily available and regularly used by the organisation on its normal products. There are 265 kgs of material D in stock which cost ?795 last week. The current market price is ?3.24 per kg. Material D is normally used to make product X. Each unit of X requires 3 kgs of material D, and if material D is casted at ?3 per kg, each unit of X yields a contribution of ?15.The relevant cost of material D to be included in the costing of the special order is nearest to:

25. Marketing department of an organisation estimates that 40,000 of new mixers could be sold annually at a price of ?60 each. To design, develop and produce these new mixers an investment of ?40,00,000 would be required. The company desires a 15% return on investment (ROI). Given these data, the target cost to manufacture, sell, distribute and service one mixer will be