MGSC 492 Actual Questions and Correct Answers

MGSC 492 Actual Questions and Correct Answers



Q1
Major vehicle costs are
Answer: Standing costs, running costs, and overhead costs.




Q2
Cost information is important for two main reasons
Answer: The need to know the details of the vehicle and fleet performance in order to
control the operations The need to know in sufficient time to make any changes




Q3
A weekly report for every vehicle in the fleet can show a cost increase
Answer: The cost of the fuel might have increased The vehicle may have traveled more
than average The vehicle may not be performing properly Figures may have been
recorded incorrectly The driver may be stealing fuel




Q4
Four aspects of a good costing system
Answer: To be able to identify that something is wrong To get this information in good
time To be able to identify what the problem is From this information it should then be
possible to take some form of remedial action and solve the problem.




Q5
5 Ms
Answer: Manpower Machinery Materials Money Minutes




Q6
Cost unit
Answer: A unit of quantity in which costs may be derived or expressed Cost per
distance travelled Cost per ton per mile Cost per carton delivered