McqMate
1. |
Carriage outward is a part of |
A. | Office and Administrative overhead |
B. | Factory overhead |
C. | Selling and Distribution overhead |
D. | Prime Cost |
Answer» C. Selling and Distribution overhead |
2. |
Notional cost is also known as |
A. | Variable cost |
B. | Imputed cost |
C. | Opportunity cost |
D. | Out of Pocket cost |
Answer» B. Imputed cost |
3. |
Which one of the following is not a cost unit? |
A. | Kilo watt hour |
B. | Credit division |
C. | Patient day |
D. | Tonne-mile |
Answer» B. Credit division |
4. |
Cost reduction - |
A. | Long term phenomena |
B. | It challenges the standards. |
C. | It is carried out without compromising the quality. |
D. | All of the above |
Answer» D. All of the above |
5. |
Statement showing break up of costs is known as |
A. | Cost sheet |
B. | Tender |
C. | Production account |
D. | Statement of profit |
Answer» A. Cost sheet |
6. |
Prime cost may be correctly termed as 24 |
A. | the total of all cost items which can be directly charged to product units. |
B. | the sums of all direct materials and labour cost excluding all other cost. |
C. | the total costs incurred in producing a finished unit. |
D. | the sum of the large cost in product cost. |
Answer» A. the total of all cost items which can be directly charged to product units. |
7. |
Which one is included in financial accounts but not in cost accounts? |
A. | Royalty |
B. | Dividend paid |
C. | Excise duty |
D. | Carriage and freight |
Answer» B. Dividend paid |
8. |
Which of the following term is excluded from the cost accounts? |
A. | Income tax |
B. | Interest on debenture |
C. | Cash discount |
D. | All of the above |
Answer» D. All of the above |
9. |
Variable costs are fixed |
A. | depend upon the entity |
B. | for a period |
C. | per unit |
D. | for a particular process of production |
Answer» C. per unit |
10. |
Costs are classified into fixed costs, variable costs and semi-variable costs, it is known as |
A. | Behavioural classification |
B. | Classification according to controllability |
C. | Functional classification |
D. | Element wise classification |
Answer» A. Behavioural classification |
11. |
The main purpose of cost accounting is to |
A. | maximize profit |
B. | inventory valuation |
C. | provide information for decision making. |
D. | fixation of selling price |
Answer» C. provide information for decision making. |
12. |
Process cost is very much applicable in |
A. | Construction industry |
B. | Pharmaceutical industry |
C. | Airline company |
D. | Printing industry |
Answer» B. Pharmaceutical industry |
13. |
All indirect costs are termed as |
A. | Prime cost |
B. | Factory cost |
C. | Conversion cost |
D. | Overheads |
Answer» D. Overheads |
14. |
CAS-21 is related to |
A. | Cost Accounting Standard on Overburden Removal Cost. |
B. | Cost Accounting Standard on Interest and Financing Charges |
C. | Cost Accounting Standard on Joint Cost |
D. | Cost Accounting Standard on Quality Control |
Answer» D. Cost Accounting Standard on Quality Control |
15. |
On the basis of “Relationship with accounting period” costs are classified as |
A. | Historical Costs and Pre-determined Costs. |
B. | Capital Costs and Commercial Costs. |
C. | Capital Costs and Revenue Costs. |
D. | Product Costs and Period Costs |
Answer» C. Capital Costs and Revenue Costs. |
16. |
Cost of staff services is an example of |
A. | Committed Costs |
B. | Policy and Managed Costs |
C. | Discretionary Costs |
D. | Step Costs |
Answer» B. Policy and Managed Costs |
17. |
Which of the following is not a method of costing? |
A. | Process Costing |
B. | Batch Costing |
C. | Direct Costing |
D. | Operating Costing |
Answer» C. Direct Costing |
18. |
The written down value of the abandoned plant less its salvage value is |
A. | Imputed cost |
B. | Sunk cost |
C. | Avoidable Cost |
D. | Opportunity cost |
Answer» B. Sunk cost |
19. |
The costs are differentiated between fixed and variable costs under |
A. | Marginal Costing |
B. | Direct Costing |
C. | Standard Costing |
D. | Absorption Costing |
Answer» A. Marginal Costing |
20. |
Which of the following is a suitable cost unit for the BPO Services/Call Centers? |
A. | Cost per item |
B. | Cost per hour |
C. | Cost per account handled |
D. | Cost per minute |
Answer» C. Cost per account handled |
21. |
Interest on own capital is |
A. | Cash Cost |
B. | Notional Cost |
C. | Part of Prime Cost |
D. | Semi-Variable Cost |
Answer» B. Notional Cost |
22. |
Advertisement costs are termed as |
A. | Direct Expenses |
B. | Cost of Production |
C. | Selling Overhead |
D. | Distribution Overhead |
Answer» C. Selling Overhead |
23. |
Direct Wages 2,05,000 and Factory Cost 5,60,000. If the ratio of direct wages and factory overhead is 5 : 3 then Direct Material Cost will be |
A. | 2,32,000 |
B. | 3,50,000 |
C. | 3,41,667 |
D. | 2,24,000 |
Answer» A. 2,32,000 |
24. |
A technique and process of ascertaining costs is known as |
A. | Cost |
B. | Costing |
C. | Cost Accounting |
D. | Cost Accountancy |
Answer» B. Costing |
25. |
The branch of the accounting dealing with the classification, recording, allocation, summarizing and reporting of current and prospective costs, is known as |
A. | Financial Accounting |
B. | Management Accounting 26 |
C. | Cost Accounting |
D. | Cost Accountancy |
Answer» C. Cost Accounting |
26. |
Which of the following is not a function of Cost Accountancy? |
A. | Cost Control |
B. | Cost Ascertainment |
C. | Cost Analysis |
D. | Cost Accounting |
Answer» C. Cost Analysis |
27. |
Which of the following ‘CAS’ is related to “Pollution Cost”? |
A. | CAS - 11 |
B. | CAS - 13 |
C. | CAS - 14 |
D. | CAS – 17 |
Answer» C. CAS - 14 |
28. |
Costs are classified between direct and indirect costs according to method of classification by |
A. | Nature or Element |
B. | Functions |
C. | Degree of traceability to product |
D. | Change in Activity or Volume |
Answer» C. Degree of traceability to product |
29. |
Depreciation on building is an example of |
A. | Committed Costs |
B. | Policy and Managed Costs |
C. | Discretionary Costs |
D. | Step Costs |
Answer» A. Committed Costs |
30. |
When the volume of output is increased then the per unit fixed cost will be |
A. | increase in the proportion of output. |
B. | decrease in the reverse proportion of output |
C. | changed but not in proportion of output. |
D. | unchanged |
Answer» B. decrease in the reverse proportion of output |
31. |
Which of the following costing method is suitable for Toy Making Industry? |
A. | Contract Costing |
B. | Process Costing |
C. | Job Costing |
D. | Batch Costing |
Answer» B. Process Costing |
32. |
Which of the following is not a technique of costing? |
A. | Managerial Costing |
B. | Process Costing |
C. | Standard Costing |
D. | Budgetary Costing |
Answer» D. Budgetary Costing |
33. |
Excise duty is an example of |
A. | Chargeable expense |
B. | Factory overhead |
C. | Administrative overhead |
D. | Non-cost item |
Answer» A. Chargeable expense |
34. |
Over which the following costs, management is likely to have least control? |
A. | Wages cost |
B. | Building Insurance cost |
C. | Machinery Breakdown cost |
D. | Advertisement cost |
Answer» C. Machinery Breakdown cost |
35. |
The works cost plus administration expenses represents 27 |
A. | Total cost |
B. | Cost of Production |
C. | Cost of sales |
D. | Factory cost |
Answer» B. Cost of Production |
36. |
Opportunity cost is the best example of |
A. | Sunk cost |
B. | Standard cost |
C. | Relevant cost |
D. | Irrelevant cost |
Answer» C. Relevant cost |
37. |
Which method of costing is used for determination of costs for printing industry? |
A. | Process costing |
B. | Operating costing |
C. | Batch costing |
D. | Job costing |
Answer» D. Job costing |
38. |
Prime cost plus factory overheads is known as |
A. | Marginal Costing |
B. | Conversion Cost |
C. | Commercial Cost |
D. | Factory Cost |
Answer» D. Factory Cost |
39. |
From the following information, find out purchases when raw material consumed is 26,500; Closing stock 4,500 and opening stock 3,000. |
A. | 26,500 |
B. | 25,000 |
C. | 28,000 |
D. | 34,000 |
Answer» C. 28,000 |
40. |
Bad debts are included as |
A. | Direct expenses |
B. | Distribution overhead |
C. | Cost of production |
D. | Selling overhead |
Answer» D. Selling overhead |
41. |
When re-ordering level is 200 units, minimum usage is 20 units, minimum lead time is 5 days, maximum stock is 400 units then re-ordering quantity will be: |
A. | 400 units |
B. | 200 units |
C. | 300 units |
D. | 100 units |
Answer» C. 300 units |
42. |
In the situation of increasing prices, the valuation of closing stock is more under: |
A. | Simple average |
B. | Weighted average |
C. | FIFO |
D. | LIFO |
Answer» C. FIFO |
43. |
Payment of Royalties is |
A. | Direct Expenses |
B. | Administrative Cost |
C. | Charged to Profit & Loss A/c |
D. | Factory Overheads |
Answer» A. Direct Expenses |
44. |
Which one of the following statement is true? |
A. | Abnormal cost is not controllable |
B. | Financial Expenses are included in Cost Sheet |
C. | All overheads changes with the change in volume and in the same proportion. 28 |
D. | Primary packing is an item of prime cost. |
Answer» D. Primary packing is an item of prime cost. |
45. |
Costing is a technique of |
A. | Recording of Cost transactions |
B. | Ascertaining Cost |
C. | Preparation of final accounts |
D. | Decision making |
Answer» B. Ascertaining Cost |
46. |
Which of following is appropriate Cost Unit for timber industry? |
A. | Per tonne |
B. | Per article |
C. | Per Kg. |
D. | Per foot |
Answer» D. Per foot |
47. |
Which of the following is a Cost Control Technique? |
A. | Marginal Costing |
B. | Uniform Costing |
C. | Standard Costing |
D. | Absorption Costing |
Answer» C. Standard Costing |
48. |
Cost of free samples and gifts are included in |
A. | Prime Cost |
B. | Factory Overhead |
C. | Office and Administrative Overheads |
D. | Selling & Distribution Overheads |
Answer» D. Selling & Distribution Overheads |
49. |
In behavioural analysis, costs are divided into |
A. | Production and Non-Production costs |
B. | Controllable and Non-Controllable costs |
C. | Direct and indirect costs |
D. | Fixed and Variable costs |
Answer» D. Fixed and Variable costs |
50. |
Which of the following is a part of both Prime cost and Conversion cost? |
A. | Direct Material |
B. | Indirect Labour |
C. | Direct Labour |
D. | All of the above |
Answer» C. Direct Labour |
51. |
Which of the following is not a Relevant Cost? |
A. | Replacement Cost |
B. | Sunk Cost |
C. | Marginal Cost |
D. | Standard Cost |
Answer» B. Sunk Cost |
52. |
Direct Expenses are also known as |
A. | Overhead Expenses |
B. | Process Expenses |
C. | Chargeable Expenses |
D. | None of the above |
Answer» C. Chargeable Expenses |
53. |
Indirect material cost is a part of |
A. | Prime Cost |
B. | Factory Overhead |
C. | Chargeable Expenses |
D. | None of the above |
Answer» B. Factory Overhead |
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