McqMate
| 101. |
…………..cost is irrecoverable cost. |
| A. | marginal |
| B. | out of pocket |
| C. | Sunk |
| D. | none of these |
| Answer» C. Sunk | |
| 102. |
……………….is the value of a benefit where no actual cost is incurred. |
| A. | Imputed |
| B. | sunk |
| C. | out of pocket |
| D. | none of these |
| Answer» A. Imputed | |
| 103. |
……………is the cost which involves payment to outsiders. |
| A. | Out of pocket cost |
| B. | Imputed cost |
| C. | notional cost |
| D. | none of these |
| Answer» A. Out of pocket cost | |
| 104. |
………………… is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use. |
| A. | Opportunity |
| B. | incremental revenue |
| C. | alternative revenue |
| D. | none of these |
| Answer» A. Opportunity | |
| 105. |
An item of cost that is direct for one business may be …………..for another business. |
| A. | Important |
| B. | direct |
| C. | Indirect |
| D. | none of the above. |
| Answer» C. Indirect | |
| 106. |
The total of all direct expenses is known as …………..cost. |
| A. | Prime |
| B. | Works |
| C. | Production |
| D. | both a & b |
| Answer» A. Prime | |
| 107. |
……………costs are partly fixed and partly variable in relation to output. |
| A. | Variable |
| B. | fixed |
| C. | Semi-variable |
| D. | both a & b |
| Answer» C. Semi-variable | |
| 108. |
An opportunity cost is ………………….. |
| A. | the advantage foregone |
| B. | the cost |
| C. | the income |
| D. | none of the above. |
| Answer» A. the advantage foregone | |
| 109. |
Works cost is a total of……………… |
| A. | Indirect material, Indirect labour |
| B. | Direct material, direct labour, direct or chargeable expenses and works expenses |
| C. | Direct material, direct labour |
| D. | Indirect material, Indirect labour, Indirect expenses |
| Answer» B. Direct material, direct labour, direct or chargeable expenses and works expenses | |
| 110. |
An opportunity cost does not involve………… |
| A. | Cash outlays |
| B. | direct cost |
| C. | indirect cost |
| D. | none of the above |
| Answer» A. Cash outlays | |
| 111. |
Variable costs change ……………………with change in output. |
| A. | Proportionately |
| B. | Inversely |
| C. | Disproportionately |
| D. | Sometimes |
| Answer» A. Proportionately | |
| 112. |
Fixed cost per unit …………………….with increase in output. |
| A. | decreases |
| B. | increases |
| C. | changes |
| D. | sometimes |
| Answer» A. decreases | |
| 113. |
Depreciation is…………………expenditure. |
| A. | fixed |
| B. | variable |
| C. | adjustable |
| D. | Semi-variable |
| Answer» D. Semi-variable | |
| 114. |
Out of pocket costs involve payment to ………………… |
| A. | Outsiders |
| B. | self |
| C. | employees |
| D. | none of the above |
| Answer» A. Outsiders | |
| 115. |
Added value is the change in………………… |
| A. | Market value |
| B. | cost |
| C. | income |
| D. | none of the above. |
| Answer» A. Market value | |
| 116. |
…………………. Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing. |
| A. | Financial |
| B. | Cost |
| C. | both a & b |
| D. | none of these |
| Answer» B. Cost | |
| 117. |
Material control does not cover the following stage. |
| A. | Purchase of materials |
| B. | storing of materials |
| C. | issue of materials |
| D. | production |
| Answer» D. production | |
| 118. |
Material control aims at achieving effective………… |
| A. | Material management |
| B. | quality control |
| C. | accounting of material |
| D. | material supply |
| Answer» A. Material management | |
| 119. |
Stores Ledger is maintained in the………………… |
| A. | Store |
| B. | finance department |
| C. | cost accounting department |
| D. | Both a & b |
| Answer» C. cost accounting department | |
| 120. |
Stock verification sheets are maintained to record the results of ………. |
| A. | Physical verification |
| B. | financial control |
| C. | financial verification |
| D. | quality verification |
| Answer» A. Physical verification | |
| 121. |
Stock Adjustment Account is debited with ……….and credited with ……….. |
| A. | Surplus, shortage of stock |
| B. | shortage of stock, surplus |
| C. | excess, loss |
| D. | none of these |
| Answer» B. shortage of stock, surplus | |
| 122. |
Bin card is a record of ………….only. |
| A. | Cost |
| B. | value |
| C. | quantity |
| D. | expense |
| Answer» C. quantity | |
| 123. |
Bin card is maintained by the……………. |
| A. | Cost accountant |
| B. | Clerk |
| C. | storekeeper |
| D. | branch accountant |
| Answer» C. storekeeper | |
| 124. |
Material abstract is also known as ……………… |
| A. | Material issue analysis sheet |
| B. | bill of materials |
| C. | stores ledger |
| D. | none of the above |
| Answer» A. Material issue analysis sheet | |
| 125. |
Material should be issued by the store keeper against………………. |
| A. | Material requisition |
| B. | bill of materials |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 126. |
First in first out method of valuing material issues is suitable in times of………… |
| A. | Rising prices |
| B. | falling prices |
| C. | fluctuating prices |
| D. | none of these |
| Answer» B. falling prices | |
| 127. |
Last in first out method is suitable in times of……………… |
| A. | Rising prices |
| B. | falling prices |
| C. | fluctuating prices |
| D. | none of these |
| Answer» A. Rising prices | |
| 128. |
Average cost method of valuing material issues is suitable when…………. |
| A. | Prices rise |
| B. | prices fall |
| C. | prices fluctuate considerably |
| D. | none of these |
| Answer» C. prices fluctuate considerably | |
| 129. |
Inflated price method of valuing material issues is suitable when………… |
| A. | Materials are subject to natural wastage |
| B. | prices rise |
| C. | prices fall |
| D. | none of these |
| Answer» A. Materials are subject to natural wastage | |
| 130. |
Specific price method of valuing material issue is used when…………. |
| A. | Materials are purchased for specific job or work order |
| B. | materials are subject to natural wastage |
| C. | prices fluctuate |
| D. | none of these |
| Answer» A. Materials are purchased for specific job or work order | |
| 131. |
Market price method is considered to be the best method when………….. |
| A. | Quotations have to be sent |
| B. | prices fluctuate |
| C. | materials are subject to natural wastage |
| D. | none of these |
| Answer» A. Quotations have to be sent | |
| 132. |
A bill of material serves the purpose of………………… |
| A. | Material requisition |
| B. | stores ledger |
| C. | material issue analysis sheet |
| D. | none of these |
| Answer» A. Material requisition | |
| 133. |
A bill of material is prepared in case of a …………………job |
| A. | Standard job |
| B. | non-standardized job |
| C. | both a & b |
| D. | none of these |
| Answer» B. non-standardized job | |
| 134. |
Stock verification sheets are maintained to record the results of……… |
| A. | Physical verification |
| B. | financial control |
| C. | financial verification |
| D. | quality verification |
| Answer» A. Physical verification | |
| 135. |
The quantity of material to be ordered at one time is known as………… |
| A. | Ordering quantity |
| B. | commercial order quantity |
| C. | economic order quantity |
| D. | none of these |
| Answer» A. Ordering quantity | |
| 136. |
…………………represents that quantity of material which is normally ordered when a particular material reaches reordering level. |
| A. | maximum level |
| B. | re-order level |
| C. | minimum level |
| D. | Re-order quantity |
| Answer» D. Re-order quantity | |
| 137. |
The principle types of inventories are raw materials and ,…………and finished goods |
| A. | Processed materials |
| B. | Goods-in-progress |
| C. | stored goods |
| D. | goods for dispatch |
| Answer» B. Goods-in-progress | |
| 138. |
Re-ordering level = Maximum consumption x ………………………… |
| A. | Average re-order period |
| B. | Maximum usage |
| C. | Maximum re-order period |
| D. | Normal usage |
| Answer» C. Maximum re-order period | |
| 139. |
Inventory turnover ratio = Cost of inventory consumed during the period ÷ Cost of ……………………held during the period |
| A. | Average inventory |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» A. Average inventory | |
| 140. |
Inventory turnover in days = Days during the period ÷……………….. |
| A. | Inventory turnover ratio |
| B. | material consumed during the period |
| C. | cost of average stock during the period |
| D. | none of these |
| Answer» A. Inventory turnover ratio | |
| 141. |
………….is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» B. JIT Inventory System | |
| 142. |
………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» A. ABC Analysis | |
| 143. |
……………….. is used primarily for control of spare parts. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» C. VED Analysis | |
| 144. |
Inventory turnover ratio = Cost of …………………..during the period ÷ Cost of average inventory held during the period. |
| A. | Inventory consumed |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» A. Inventory consumed | |
| 145. |
Re-ordering level = ……………………. X Maximum re-order period |
| A. | Average re-order period |
| B. | Maximum usage |
| C. | Maximum consumption |
| D. | Normal usage |
| Answer» C. Maximum consumption | |
| 146. |
……………obviates the necessity for the physical checking of all items of stores at the end of the year and thereby avoids dislocation of production. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» D. Perpetual Inventory System | |
| 147. |
…………….forms part of cost of production. |
| A. | Abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» B. normal waste | |
| 148. |
………………does not form part of production. |
| A. | Abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» A. Abnormal waste | |
| 149. |
Material losses due to abnormal reasons should be transferred to………………… |
| A. | Profit and loss account |
| B. | Costing Profit and Loss Account |
| C. | Trading Account |
| D. | none of these |
| Answer» B. Costing Profit and Loss Account | |
| 150. |
Defectives are that portion of production which can be ………………at some extra cost of re-operation. |
| A. | Sold |
| B. | rectified |
| C. | purchased |
| D. | none of these |
| Answer» B. rectified | |
| 151. |
……………….is a method of evaluating the job in terms of its money value. |
| A. | Job analysis |
| B. | Job evaluation |
| C. | work measurement |
| D. | Motion study |
| Answer» B. Job evaluation | |
| 152. |
The requirements of a particular job are known as …………………… |
| A. | Job description |
| B. | job specifications |
| C. | job evaluation |
| D. | both a & b |
| Answer» A. Job description | |
| 153. |
Qualities demanded from the job holder is technically known as …………………… |
| A. | Job description |
| B. | job specifications |
| C. | job evaluation |
| D. | both a & b |
| Answer» B. job specifications | |
| 154. |
………………….is concerned with discovery of facts concerning a job and ……………….is concerned with ascertaining the money value of a job. |
| A. | Job description, job evaluation |
| B. | job specifications, job evaluation |
| C. | job analysis, job evaluation |
| D. | none of these |
| Answer» C. job analysis, job evaluation | |
| 155. |
For conducting …………………..workers are studied at their jobs and all their movements and motions are noted. |
| A. | Time study |
| B. | Motion study |
| C. | Merit rating |
| D. | none of these |
| Answer» B. Motion study | |
| 156. |
…………….. is the assessment of the relative worth of jobs within a company whereas ………….is the assessment of the relative worth of man behind the job. |
| A. | Job evaluation , merit rating |
| B. | job analysis, job evaluation |
| C. | job analysis, merit rating |
| D. | none of these |
| Answer» A. Job evaluation , merit rating | |
| 157. |
………………..is maintained to know how the worker’s time shown by the time card is spent on various jobs. |
| A. | Daily time sheets |
| B. | weekly time sheets |
| C. | job cards |
| D. | none of the above |
| Answer» C. job cards | |
| 158. |
In time wage system, wages are paid according to the………………. |
| A. | Production |
| B. | time |
| C. | both a & b |
| D. | none of these |
| Answer» B. time | |
| 159. |
Under piece rate system of wage payment, payment is made according to the………………… |
| A. | Quantity of work done |
| B. | time |
| C. | both a&b |
| D. | none of these |
| Answer» A. Quantity of work done | |
| 160. |
For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be………………. |
| A. | 40 |
| B. | 37.50 |
| C. | 35 |
| D. | none of these |
| Answer» B. 37.50 | |
| 161. |
Taylors differential piece rate system provides for higher rate to …….workers. |
| A. | Inefficient |
| B. | efficient |
| C. | both a & b |
| D. | lazy |
| Answer» B. efficient | |
| 162. |
…………………..is most suitable when quality of work is of prime importance. |
| A. | Piece rate system |
| B. | time wage system |
| C. | both a & b |
| D. | none of these |
| Answer» B. time wage system | |
| 163. |
Formula of calculation of wages under Halsey Premium System is…… |
| A. | R + %(S-T)R |
| B. | T x R+ % (S-T) R |
| C. | S-T x T x R S |
| D. | R x S x T |
| Answer» B. T x R+ % (S-T) R | |
| 164. |
Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between……. of the standard output. |
| A. | 83% and 100% |
| B. | 100% and 120% |
| C. | 0% and 83% |
| D. | none of these |
| Answer» A. 83% and 100% | |
| 165. |
Under Merrick’s multiple piece rate system, 120% of the ordinary piece rate is given to workers whose level of performance is between……………….of the standard output. |
| A. | 83% and 100% |
| B. | 100% and 120% |
| C. | 0% and 83% |
| D. | none of these |
| Answer» B. 100% and 120% | |
| 166. |
Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between……………….of the standard output. |
| A. | 0% and 100% |
| B. | 0% and 120% |
| C. | 0% and 83% |
| D. | none of these |
| Answer» C. 0% and 83% | |
| 167. |
In …………………………., two piece rates are set for each job. |
| A. | Merrick’s multiple piece rate system |
| B. | Rowan’s Premium Plan |
| C. | Taylor’s differential piece rate system |
| D. | none of these |
| Answer» C. Taylor’s differential piece rate system | |
| 168. |
Basis of apportionment of stores service expenses is ……………….. |
| A. | Value of materials consumed |
| B. | units of material consumed |
| C. | products produced |
| D. | none of these |
| Answer» A. Value of materials consumed | |
| 169. |
Basis of apportionment of welfare department expenses is………….. |
| A. | Wages of each department |
| B. | Number of employees |
| C. | materials consumed |
| D. | number of machineries |
| Answer» B. Number of employees | |
| 170. |
Basis of apportionment of crèche expenses is …………….. |
| A. | Number of employees |
| B. | number of female employees |
| C. | number of male employees |
| D. | both b&c |
| Answer» B. number of female employees | |
| 171. |
Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to the ………….. |
| A. | Production departments |
| B. | service departments |
| C. | both a & b |
| D. | none of these |
| Answer» A. Production departments | |
| 172. |
Machine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the………… |
| A. | Number of hours |
| B. | number of products produced |
| C. | number of workers |
| D. | wages |
| Answer» A. Number of hours | |
| 173. |
……………..is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred. |
| A. | Over absorption of overheads |
| B. | under absorption of overheads |
| C. | overheads absorption |
| D. | none of these. |
| Answer» B. under absorption of overheads | |
| 174. |
…………….is the excess of overheads absorbed over the actual amount of overheads incurred. |
| A. | Over absorption of overheads |
| B. | under absorption of overheads |
| C. | overheads absorption |
| D. | none of these. |
| Answer» A. Over absorption of overheads | |
| 175. |
When …………………….is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads. |
| A. | A predetermined rate |
| B. | actual rate method of absorption |
| C. | both a & b |
| D. | none of these |
| Answer» A. A predetermined rate | |
| 176. |
Expenses incurred during production other than direct materials and direct labour are called…………..factory expenses; those charged to production on estimated basis are called ……………. |
| A. | Actual, applied |
| B. | applied, actual |
| C. | indirect, direct |
| D. | none of these |
| Answer» A. Actual, applied | |
| 177. |
The per unit expense of the ……………portion factory overhead varies with the volume of production while………………..portion remains the same with volume. |
| A. | Fixed, variable |
| B. | variable, fixed |
| C. | variable, semi-variable |
| D. | none of these |
| Answer» A. Fixed, variable | |
| 178. |
…………………expenses are excluded from cost. |
| A. | Normal |
| B. | abnormal |
| C. | both a & b |
| D. | none of these |
| Answer» B. abnormal | |
| 179. |
Such expenses which are included (even though they are not incurred) for taking managerial decisions are called……………… |
| A. | Notional expenses |
| B. | actual expenses |
| C. | imputed |
| D. | none of these |
| Answer» A. Notional expenses | |
| 180. |
……………….expenses are partly fixed and partly variable. |
| A. | All expenses |
| B. | variable |
| C. | fixed |
| D. | semi-variable |
| Answer» D. semi-variable | |
| 181. |
Unsuccessful research expenditure should be …………….. cost accounts. |
| A. | Excluded from |
| B. | included in |
| C. | apportioned in |
| D. | none of these |
| Answer» A. Excluded from | |
| 182. |
Salary paid to general manager is an item of ……………………expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | estimated |
| Answer» A. Fixed | |
| 183. |
Fancy packing is an example of ………….expenses. |
| A. | Selling |
| B. | Distribution |
| C. | administration |
| D. | factory |
| Answer» A. Selling | |
| 184. |
Telephone expense is …………….expense. |
| A. | Variable |
| B. | semi-variable |
| C. | fixed |
| D. | none of these |
| Answer» B. semi-variable | |
| 185. |
Primary packing is an item of ……………… |
| A. | Selling overheads |
| B. | prime cost |
| C. | distribution overheads |
| D. | factory overheads |
| Answer» B. prime cost | |
| 186. |
When factory overhead control account has an ending debit balance, factory overhead was……………… |
| A. | Over applied |
| B. | under applied |
| C. | both a & b |
| D. | none of these |
| Answer» B. under applied | |
| 187. |
Under applied or over applied factory overhead should be |
| A. | Carried forward to next year |
| B. | shown as an extraordinary item |
| C. | apportioned among cost of goods sold and applicable to inventory |
| D. | written off |
| Answer» C. apportioned among cost of goods sold and applicable to inventory | |
| 188. |
Credit and collection cost is an item of |
| A. | Selling overhead |
| B. | office overhead |
| C. | prime cost |
| D. | administrative overhead |
| Answer» A. Selling overhead | |
| 189. |
Warehousing cost is an item of |
| A. | Office overhead |
| B. | distribution overhead |
| C. | material cost |
| D. | works overhead |
| Answer» B. distribution overhead | |
| 190. |
In …………………..each job is a cost unit to which all costs are assigned. |
| A. | Batch costing |
| B. | Job costing |
| C. | process costing |
| D. | operation costing |
| Answer» B. Job costing | |
| 191. |
Material Costs of each job are determined from…………… |
| A. | Material requisition notes |
| B. | bill of materials |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 192. |
Printers use ………………costing. |
| A. | Process |
| B. | Batch |
| C. | job |
| D. | contract |
| Answer» C. job | |
| 193. |
Each job has a ………….. prepared for it that bears the job number and which is used to collect all cost data relating to job. |
| A. | Job Time Sheet |
| B. | Job Cost Card |
| C. | Job Ticket |
| D. | Job Account |
| Answer» B. Job Cost Card | |
| 194. |
An automobile service unit uses ………………costing. |
| A. | specific order |
| B. | batch |
| C. | job |
| D. | contract |
| Answer» C. job | |
| 195. |
Where the work is undertaken to Customers’ special requirements and each order is of comparatively short-duration, it is called…………..costing. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» A. Job | |
| 196. |
Economic Batch Quantity is an important point to be determined in industries where …………… costing is employed. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» B. batch | |
| 197. |
Economic Batch Quantity depends on ……………….and ……………..costs. |
| A. | Material, labour |
| B. | set-up costs, carrying |
| C. | transportation, carrying |
| D. | warehousing, labour |
| Answer» B. set-up costs, carrying | |
| 198. |
The ……………costing is applied when a quantity of similar and identical products are manufactured together as one Job. |
| A. | Job |
| B. | Batch |
| C. | operation |
| D. | output |
| Answer» B. Batch | |
| 199. |
The loss incurred on an incomplete contract is transferred to …………….account. |
| A. | Costing profit and loss account |
| B. | profit and loss account |
| C. | trading account |
| D. | deferred to next year. |
| Answer» B. profit and loss account | |
| 200. |
When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to………….. |
| A. | 1/3rd of Notional Profit x cash received Work certified |
| B. | ½ of Notional Profit x cash received Work certified |
| C. | 2/3rd of Notional profit x cash received Work certified |
| D. | full Notional Profit. |
| Answer» C. 2/3rd of Notional profit x cash received Work certified | |
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