16.

17.

18.

19.

20.

21.

22.

23.

108/23

The Miller and Modigliani theory argues that

A) Dividend policy does not affect the market price of the shares

B) Dividend policy has a positive effect on the market price of the shares

C) Dividend policy has a negative effect on the market price of the shares

D) None of the above

The total cost of a product is Rs. 33,000. If the profit is 25% of the selling price,
calculate the amount of profit.

A) Rs. 8,250 B) Rs. 11,000 C) Rs. 10,300 D) Rs. 10,000

When prices of materials are falling, which method of the material issue is suitable ?
A) FIFO B) LIFO C) Average cost D) Base stock
The total expense for producing 940 units of a product is Rs. 2,880 and the total

expense for producing 500 units of that product is Rs. 2,000. Calculate the variable
cost per unit of the product.

A) 3 B) 4 C) 2 D) 1

BEP occurs at the intersection of

A) Total cost line and sales line B) Fixed cost line and variable cost line
C) Fixed cost line and sales line D) Variable cost line and sales line

The formula for calculating the material usage variance
A) Actual Price (Actual Quantity — Standard Quantity)

8) Actual Price (Standard Quantity — Actual Quantity)
C) Standard Price (Standard Quantity — Actual Quantity)
D) Standard Price (Actual Quantity — Standard Quantity)

What is the difference between cost reduction and cost control ?

A) Cost reduction involves reducing costs, while cost control involves achieving
predetermined costs

B) Cost reduction involves maintaining costs, while cost control involves reducing
costs

C) Cost reduction and cost control are the same things
D) Cost reduction and cost control are not related to each other

What is ABC analysis in cost accounting ?

A) Amethod of allocating costs to products based on their production volumes
B) Amethod of categorizing inventory items based on their value and importance
C) A method of analyzing customer profitability

D) A method of determining the optimal product mix