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Questionnaire for Cost Accounting

Published on January 2017 | Categories: Documents | Downloads: 14 | Comments: 0
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Questionnaire
1. What is the cost determination process of Aristocrat agro Ltd. (Rice mill)
2. How Aristocrat control cost?
Ans: Aristocrat Control cost by some steps. They are:
1. They identify the wastage & try to eliminate them
2. They identify the causes that are resulting decrease of profit or loss and try to find a
solution to overcome it
3. They try to control the materials & their costs
4. They measure the effect of capacity utilization at different level
3. How cost determination and control help Aristocrat in decision making?
Ans: Cost determination & cost control helps aristocrat in decision making. They provide
important information to management about accepting or rejecting any project. They help
to fix the price of their product (rice)
4. Does Aristocrat provide their “supply information” to government?
a) Yes, b) No, c) If necessary.
5. What are the strategies for preventing fraudulent in Aristocrat?
6. How Aristocrat represent ‘Expense’ & ‘Production cost’?
Ans: They treat Expense in Income statement when benefit is already received. And they
treat Production cost in the Income Statement as Cost Of Goods Sold after sell and before
sell they showed it in Balance Sheet as Inventory.
7. How Aristocrat represent loss in their financial statement?
8. Which method Aristocrat use to find out total cost?
a) Job Order Costing, b) Process Costing
9. How costs are allocated to products and services?
a) Historical/ Actual Cost, b) Standard Costing
10. Which techniques Aristocrat use to present cost information to management?
a) Direct costing, b) Absorption costing

11. Which cost concept Aristocrat use to determine cost of materials, goods, labor, FOH etc.?
a) Cost composition, b) Cost Attachment, c) Cost flow concept, d) Cost Formulation
12. How cost concept helps Aristocrat in future investment plan?
Ans: Cost concept helps Aristocrat in future investment plan by providing necessary
information, by control cost and maximize profit, by recording information’s for future.
13. While preparing cost accounts, how Aristocrat determine cost unit to identify
expenditure?

Ans: Machine hour and labor hour
14. How Aristocrat allocate cost center?
a) Production cost center, b) Service Cost Centre, c) operation Cost Centre, d) Process
cost Centre
15. How Aristocrat classify cost?
a) Nature of Expense, b) Traceability, c) Management Decision Making, d) Others
16. If Aristocrat uses “nature of expense” how it classify cost by nature?
a) Material b) Labor, c) Expense d) others
17. How determinations of cost by nature of expenses help management in decision making?
Ans: Material cost: It helps to determine the amount of Taxes and duties, Freight in and
Insurance cost, by which management can make their decision easily.
Labor cost: It helps to determine the labor costs & salaries by which management can
take their decision regarding their employees.
Expenses: Helps to determine the expenses other than material cost & Labor cost that
helps management to make decisions about the utilities, charges,
18. How Opportunity cost affecting Aristocrat?
19. How relevant cost related to the production affecting profit/loss?
20. How Aristocrat recovers sunk cost?
Ans:
21. How unavoidable costs are handled in Aristocrat?
Ans At first they determine the unavoidable costs and then they try to minimize the costs
at their level best.
22. How Aristocrat treats period cost and imputed cost?
Ans The have no imputed cost
23. Does Aristocrat need to change their cost classification for improvement of the firm and
maximizing stockholder’s wealth?

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