JIGDAN COLLEGE DISTANCE & CONTINUING EDUCATION PROGRAM COST AND MANAGEMENT ACCOUNTING I (ACEN 3021) ASSIGNMENT 40%) Name ID -- Batch- Term Center - Department Part I: Multiple choices: Choose the Best Answer from the Iven alternatives (2 pts each) A company's gross profit is 50% of cost of goods sold and its net income is 40% of gross profit. If the total sale revenue during a period is Br. 600, 000, what is the operating expense in the period? A. Br.200, 000 B.Br 80,000 C. Br 120,000 D. 180,000 E. None 2. Total cost of production incurred in a given month is Br.420, 000 of which 75% is conversion cost. The cost of direct material at the beginning is Br.30, 000 and cost of direct material ending is half of the beginning. What is cost of direct material purchased during the month? A. 105,000 B. 15,000 C. 315,000 D.90, 000 E. None 3. In a production process, the total prime cost incurred is Br400, 000 and the total conversion cost is Br320. 000. If the sum of direct material cost and MOH cost is Br.500, 000, the total cost incurred in the period will be: A. Br.290, 000 B. Br 1 10,000 C. Br 580,000 D: Br 610,000 E. None 4. Which of the following is common for both prime cost and conversion cost? A) Direct material cost B. Direct labor cost C. Manufacturing overhead cost D. Indirect labor cost E. None 5. Anything for which separate measurement of cost is desired A. Cost driver B. Cost object C. Cost management D. Cost tracing E. None 6. Which of the following is not traceable cost? A. Direct material B. Direct labor C. Indirect labor D. Insurance premium for plant E. C and D are correct answers 7. Select the false statement a) Fixed cost always remains constant regardless of change in output and time period b) Unit variable cost remains constant regardless of change in our put c) Unit fixed cost decrease as output increase d) Total variable cost increase as output increase e) None of the above 8. Which of the following is true? a) Opportunity cost is an out-of-pocket cost b) Controllability of a cost depend on the level of management and time period c) Past or sunk cost is relevant for decision making d) D) Marketing costs are costs associated manufacturing a product Cost and Management Accounting I (ACEN 3021) ASSIGNMENT PAGE 1