Answer all the questions with proper working notes!

1.

Autumn Company produces a part used in the manufacture of one of its products. The

unit product cost is $18, computed as follows:

Direct materials......................................... $ 8

Direct labor ............................................... 4

Variable manufacturing overhead ............ 1

Fixed manufacturing overhead................. 5

$1

Unit product cost ......................................8

An outside supplier has offered to provide the annual

requirement of 4,000 of the

parts for only $14 each. It is estimated that 60 percent of the

fixed overhead cost

above could be eliminated if the parts are purchased from the

outside supplier. Based

on these data, the per-unit dollar advantage or disadvantage of

purchasing from the

outside supplier would be:

a. $1 disadvantage

b. $1 advantage

c. $2 advantage

d. $4 disadvantage

2.

The following information pertains to Maning Company's cost-volume-profit

relationships:

BEP in units sold 1,000

Variable costs per unit P500

Total fixed costs P150,000

How much will be contributed to profit before income tax by the

1,001st unit sold?

a. P650

b. P500

c. P150

d. P 0

3. Which of coming up next is really not an unforeseen threat?

(a) Claims against the affiliation not saw as responsibilities

(b) Debts related with commitment holders which are stunning in nature

(c) Uncalled danger on not totally paid offers

(d) Arrears of joined fixed advantages

4. Which of the going with spaces of bookkeeping doesn't experience arrangement of bookkeeping moves close?

(a) Valuation of Inventories

(b) Treatment of Contingent Liabilities

(c) Treatment of Goodwill

(d) None of the recently referenced

5. Goods returned by clients is entered by

(a) Debiting Purchases Account and Crediting Customers Account

(b) Debiting Customers Account and Crediting Sales Account

(c) Debiting Sales Returns Account and Crediting Customers Account

(d) Debiting Purchases Account and Crediting Sales Account

6. Purchase of item for cash from Rasheed is to be recorded by:

(a) Debiting Purchases Account and Crediting Rasheed Account

(b) Debiting Purchases Account and Crediting Cash Account

(c) Debiting Rasheed Account and Crediting Cash Account

(d) Debiting Cash Account and Crediting Purchases Account

7. Which of the going with verifications is/are significant ?

(a) A offer of a resource is recorded in the Sales Book

(b) Total of Return Outward Book is charged to Return Outward Account

(c) The concordance of Petty Cash Book is a responsibility

(d) Cash Book is an associate book correspondingly as a record

8. Which of coming up next is authentic regarding shutting territories?

(a) They should be trailed by turning portions

(b) They move the equilibriums in the entire of the Nominal Accounts to the Trading and Profit and Loss Account

(c) They should be made after the rotating sections yet before the changing zones

(d) They should be made after the changing zones in any case before the trading areas

9. Closing stock is generally speaking respected at

(a) Cost Price

(b) Market Price

(c) Cost cost or Market regard whichever is higher

(d) Cost cost or Market regard whichever is lower

10. Which of the going with resources is/are to be respected at the lower of cost and net feasible worth?

(a) Goodwill

(b) Inventories

(c) Investments

(d) Both (b) and (c) above.