McqMate
| 201. |
When the completion stage of a contract is less than ¼, the total expenditure on the contract is transferred to ………………..account. |
| A. | Work-in-Progress |
| B. | Profit and loss account |
| C. | miscellaneous account |
| D. | none of these |
| Answer» A. Work-in-Progress | |
| 202. |
If the amount of work certified is less than………of the contract price, then no profit should be taken to Profit & Loss Account. |
| A. | 20% |
| B. | 25% |
| C. | 33 1/3% |
| D. | 40% |
| Answer» B. 25% | |
| 203. |
Contract costing is not used in one of the following industries. |
| A. | Ship building |
| B. | Civil Construction |
| C. | Automobiles |
| D. | Construction of Bridges |
| Answer» C. Automobiles | |
| 204. |
The sum of value of work certified and uncertified appearing in the Contract Account is called …………….. |
| A. | Work in Progress |
| B. | Work in Process |
| C. | Work Completed |
| D. | Work done. |
| Answer» A. Work in Progress | |
| 205. |
……………………is the most suitable method in a transport industry. |
| A. | Operation costing |
| B. | Service costing |
| C. | Process costing |
| D. | Job costing |
| Answer» B. Service costing | |
| 206. |
Room/day is the cost unit used in………………… |
| A. | Hotels |
| B. | hospital |
| C. | schools |
| D. | none of these |
| Answer» A. Hotels | |
| 207. |
Maintenance charges are in the nature of …………………expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | none of these |
| Answer» C. semi-variable | |
| 208. |
In transport costing………………charges vary more or less in direct proportion to kilometers run. |
| A. | Running |
| B. | petrol |
| C. | drivers salary |
| D. | tax |
| Answer» A. Running | |
| 209. |
Service costing is called as ………………. |
| A. | Operation costing |
| B. | Operating costing |
| C. | multiple costing |
| D. | none of these |
| Answer» B. Operating costing | |
| 210. |
In electricity supply company uses …………….as cost unit. |
| A. | Kilo watt hour |
| B. | per household |
| C. | voltage |
| D. | none of these |
| Answer» A. Kilo watt hour | |
| 211. |
In transportation costing a composite unit such as …………….is used. |
| A. | passenger mile/km or Ten kilometer |
| B. | per km |
| C. | per passenger |
| D. | per stop |
| Answer» A. passenger mile/km or Ten kilometer | |
| 212. |
Boiler house costing is an example of …………….costing |
| A. | Operation |
| B. | process |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 213. |
In service costing, fixed charges are also called as………………….. |
| A. | Standing charges |
| B. | variable charges |
| C. | fixed charges |
| D. | none of these |
| Answer» A. Standing charges | |
| 214. |
Service costing is not used in one of the following: |
| A. | Electricity |
| B. | Hospitals |
| C. | transport |
| D. | Electronics |
| Answer» D. Electronics | |
| 215. |
If the present cost of the car is Rs.1,00,000 residual value at the end of the 5th year is Rs.20,000, the monthly depreciation is………… |
| A. | Rs.20,000 |
| B. | Rs.16,000 |
| C. | Rs.1,333 |
| D. | Rs.17,333 |
| Answer» C. Rs.1,333 | |
| 216. |
A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are……………… |
| A. | 30,000 |
| B. | 12,500 |
| C. | 20,000 |
| D. | 25,000 |
| Answer» D. 25,000 | |
| 217. |
In ……………………costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year: |
| A. | Multiple |
| B. | Process |
| C. | Operation |
| D. | single. |
| Answer» C. Operation | |
| 218. |
The method of costing applied in biscuit industries is ………….costing and in steel industry………….costing. |
| A. | Job, process |
| B. | job, contract |
| C. | batch, multiple |
| D. | process, operation |
| Answer» A. Job, process | |
| 219. |
Average unit cost for each process is calculated by dividing the ………………..by………………… |
| A. | Total cost, number of units |
| B. | total process cost, number of units in process |
| C. | Total process cost, number of finished goods |
| D. | total cost, number of units produced |
| Answer» B. total process cost, number of units in process | |
| 220. |
Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is………………… |
| A. | Job costing |
| B. | Operating costing |
| C. | Process Costing |
| D. | both b and c |
| Answer» C. Process Costing | |
| 221. |
When the actual loss is more than the estimated loss, the difference between the two is considered to be……….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | loss |
| D. | none of these |
| Answer» A. Abnormal loss | |
| 222. |
When actual loss is less than the estimated loss, the difference between the two is considered to be…………… |
| A. | Abnormal gain |
| B. | abnormal loss |
| C. | normal loss |
| D. | income |
| Answer» A. Abnormal gain | |
| 223. |
When actual loss is ………..than the estimated loss, the difference between the two is considered to be abnormal gain |
| A. | More |
| B. | less |
| C. | higher |
| D. | none of these |
| Answer» B. less | |
| 224. |
When actual loss is ………………than the estimated loss, the difference between the two is considered to be abnormal loss. |
| A. | More |
| B. | less |
| C. | both a & b) |
| D. | none of these |
| Answer» A. More | |
| 225. |
When 1000 units are 60% complete in a process, it is equivalent to …………….completed units. |
| A. | 60 |
| B. | 600 |
| C. | 6000 |
| D. | 1000 |
| Answer» B. 600 | |
| 226. |
Equivalent units represent the production of a process in terms of ………..units. |
| A. | Completed |
| B. | total production |
| C. | semi-finished |
| D. | both a& c |
| Answer» A. Completed | |
| 227. |
…………..process loss should be transferred to costing profit & loss account. |
| A. | Abnormal |
| B. | normal |
| C. | both a& b |
| D. | none of these |
| Answer» A. Abnormal | |
| 228. |
The cost of …………..process loss is absorbed in the cost of production of good units. |
| A. | Abnormal |
| B. | normal |
| C. | both a & b |
| D. | none of these |
| Answer» B. normal | |
| 229. |
In inter process profits, the output of one process is transferred from one process to another not at …………….but at ………………. |
| A. | Market price, actual cost |
| B. | Actual cost, market price |
| C. | both a& b |
| D. | none of these |
| Answer» B. Actual cost, market price | |
| 230. |
Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be ……………….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | abnormal gain |
| D. | normal gain |
| Answer» C. abnormal gain | |
| 231. |
In process costing, the abnormal loss is treated as ……….cost and written off to profit & loss account. |
| A. | Unit |
| B. | period |
| C. | future |
| D. | process |
| Answer» B. period | |
| 232. |
The process costing is not used in one of the following. |
| A. | Chemical |
| B. | textiles |
| C. | cement |
| D. | oil refining |
| Answer» C. cement | |
| 233. |
………….arises where the actual process loss is less than the normal predetermined process loss. |
| A. | Normal loss |
| B. | abnormal loss |
| C. | abnormal gain |
| D. | none of these |
| Answer» C. abnormal gain | |
| 234. |
An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is …………kg |
| A. | 400 |
| B. | 300 |
| C. | 500 |
| D. | 600 |
| Answer» B. 300 | |
| 235. |
Budgeting system……………key managerial functions. |
| A. | Dismisses |
| B. | integrates |
| C. | discharges |
| D. | none of these |
| Answer» B. integrates | |
| 236. |
…………………is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period. |
| A. | Rolling budget |
| B. | continuous budget |
| C. | annual budget |
| D. | both a & b |
| Answer» D. both a & b | |
| 237. |
The budget relating to ………….must be prepared first and the other budgets should be prepared in the light of that factor. |
| A. | Limiting factor |
| B. | materials |
| C. | labour |
| D. | production |
| Answer» A. Limiting factor | |
| 238. |
…………………budget is the most important budget and it forms the basis on which all the other budgets are built up. |
| A. | Production |
| B. | material |
| C. | cash budget |
| D. | sales |
| Answer» D. sales | |
| 239. |
………………….budget may be classified into material cost budget, labour cost budget and overhead budget. |
| A. | Cost of Production |
| B. | purchase |
| C. | sales |
| D. | Cash |
| Answer» A. Cost of Production | |
| 240. |
……………….budget gives an estimate of the anticipated receipts and payment of cash during the budget period. |
| A. | Sales |
| B. | Production |
| C. | Cash |
| D. | Master |
| Answer» C. Cash | |
| 241. |
……………….is the consolidated summary of the various functional budgets. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» A. Master Budget | |
| 242. |
…………………budget is designed to remain unchanged irrespective of the volume of output or turnover attained. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» B. Fixed | |
| 243. |
…………………budget gives differentbudgeted costs for different levels of activity. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» C. Flexible | |
| 244. |
…………………budget is the preparation of budget starting from a clean state. |
| A. | Performance |
| B. | Zero Base |
| C. | Cash |
| D. | none of these |
| Answer» B. Zero Base | |
| 245. |
Calendar Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» A. Number of actual working days in a period x 100 Number of working days in the budget period | |
| 246. |
Capacity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» B. Actual hours worked x 100 Budgeted hours | |
| 247. |
Efficiency Ratio= |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» C. Standard hours for actual production x 100 Actual hours worked | |
| 248. |
Activity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 |
| Answer» D. Standard hours for actual productionx 100 | |
| 249. |
……………….is a summary of all function budgets in a Capsule form. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» A. Master Budget | |
| 250. |
……………..determines the priorities of functional budget. |
| A. | Principal Budget Factor |
| B. | Limiting Factor |
| C. | both a & b |
| D. | none of the above. |
| Answer» C. both a & b | |
| 251. |
Cash Budget is a ……………….budget. |
| A. | Long term |
| B. | very long term |
| C. | short term |
| D. | very short term |
| Answer» C. short term | |
| 252. |
The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget: |
| A. | Includes only fixed costs, while a variable budget includes only variable costs. |
| B. | Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales. |
| C. | Cannot be changed after the period begins, while a variable budget can be changed after the period begins. |
| D. | Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity) |
| Answer» D. Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity) | |
| 253. |
Sales budget is a |
| A. | Functional budget |
| B. | Master budget |
| C. | Expenditure budget |
| D. | none of these |
| Answer» A. Functional budget | |
| 254. |
In the case of plant, the limiting factor may be: |
| A. | Insufficient capacity |
| B. | shortage of experienced salesmen |
| C. | general shortage of power |
| D. | shortage of materials |
| Answer» A. Insufficient capacity | |
| 255. |
The difference between fixed and variable cost has a special significance in the preparation of |
| A. | Flexible budget |
| B. | master budget |
| C. | cash budget |
| D. | sales budget |
| Answer» A. Flexible budget | |
| 256. |
The budget that is prepared first of all is………….. |
| A. | Cash budget |
| B. | master budget |
| C. | budget for the key factor |
| D. | sales budget |
| Answer» C. budget for the key factor | |
| 257. |
In case of materials the key factor may be. |
| A. | Insufficient advertising |
| B. | restrictions imposed by quota |
| C. | low market demand |
| D. | shortage of power |
| Answer» B. restrictions imposed by quota | |
| 258. |
The budget which commonly takes the form of budgeted profit and loss account and balance sheet is |
| A. | cash budget |
| B. | master budget |
| C. | flexible budget |
| D. | fixed budget |
| Answer» B. master budget | |
| 259. |
Standard cost is a …………..cost |
| A. | Predetermined |
| B. | historical |
| C. | actual |
| D. | final |
| Answer» A. Predetermined | |
| 260. |
The limitations of …………………………has led to the development of standard costing system. |
| A. | Historical costing system |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» A. Historical costing system | |
| 261. |
Standard costing is more widely applied in…………………industries. |
| A. | Process and engineering |
| B. | jobbing industries |
| C. | construction industry |
| D. | all of these |
| Answer» A. Process and engineering | |
| 262. |
Three types of standards are………….. |
| A. | Current standard, basic standard and normal standard |
| B. | Currency standard, basel standard and actual standard |
| C. | Actual standard, estimated standard and expected standard |
| D. | Expected standard, ideal standard and current standard |
| Answer» A. Current standard, basic standard and normal standard | |
| 263. |
The deviation of the actual cost or profit or sales from the standard cost or profit or sale is known as ………… |
| A. | Difference |
| B. | Variance |
| C. | Discrepancy |
| D. | Inconsistency |
| Answer» B. Variance | |
| 264. |
Management by exception is exercising control over……….. |
| A. | Costs |
| B. | Favourable items |
| C. | Unfavourable items |
| D. | all of these |
| Answer» C. Unfavourable items | |
| 265. |
Material price variance is the difference between standard and actual prices of materials used multiplied by……………….. |
| A. | Actual quantity of materials used |
| B. | Budgeted quantity of materials used |
| C. | Standard quantity of materials used |
| D. | Either a or b |
| Answer» A. Actual quantity of materials used | |
| 266. |
Labour cost variance is the difference between standard cost of labour and……….. |
| A. | Budgeted cost of labour |
| B. | Estimated cost of labour |
| C. | Actual cost of labour |
| D. | None of these |
| Answer» C. Actual cost of labour | |
| 267. |
Idle time variance is…………. |
| A. | Idle time x actual labour |
| B. | Idle time x standard rate |
| C. | Idle time x budgeted labour rate |
| D. | Idle time x historical cost |
| Answer» B. Idle time x standard rate | |
| 268. |
Volume variance is divided into…………… |
| A. | Capacity variance, calendar variance andExpenditure variance |
| B. | Capacity variance, calendar variance and efficiency variance |
| C. | Capacity variance, expenditure variance and efficiency variance |
| D. | Calendar variance, expenditure variance and efficiency variance |
| Answer» B. Capacity variance, calendar variance and efficiency variance | |
| 269. |
Standards set provide yardsticks against which………….are compared. |
| A. | Budgeted costs |
| B. | Estimated costs |
| C. | Actual costs |
| D. | None of these |
| Answer» C. Actual costs | |
| 270. |
The technique of standard costing may not be applicable in case of |
| A. | Large concerns |
| B. | Small concerns |
| C. | All concerns |
| D. | Both b & c |
| Answer» D. Both b & c | |
| 271. |
Total Material cost variance = |
| A. | Standard cost of materials-actual cost of materials |
| B. | Budgeted cost of materials- actual cost of materials |
| C. | Standard cost of materials-budgeted cost of materials |
| D. | Actual cost of materials- budgeted cost of materials |
| Answer» A. Standard cost of materials-actual cost of materials | |
| 272. |
Material Usage Variance=Material Mix Variance +………….. |
| A. | Material Yield Variance |
| B. | Material cost variance |
| C. | Material price variance |
| D. | Material quantity variance |
| Answer» A. Material Yield Variance | |
| 273. |
Material Price Variance = Actual Usage (……………) |
| A. | Standard price |
| B. | Standard unit price-actual unit price |
| C. | Actual price |
| D. | Standard usage |
| Answer» B. Standard unit price-actual unit price | |
| 274. |
Material usage variance = standard price(……………….) |
| A. | Standard usage-actual usage |
| B. | Standard unit price-actual unit price |
| C. | Standard quantity |
| D. | Actual quantity |
| Answer» A. Standard usage-actual usage | |
| 275. |
Material mix variance = standard cost of standard mix - ……………….. |
| A. | Actual cost of actual mix |
| B. | Actual cost of standard mix |
| C. | Standard cost of actual mix |
| D. | Standard cost of budgeted mix |
| Answer» C. Standard cost of actual mix | |
| 276. |
Total Labour cost variance = |
| A. | Standard cost of labour - actual cost of labour |
| B. | Standard rate(standard time for actual output-actual time worked) |
| C. | Standard rate (standard time for actual output- actual time paid for) |
| D. | Actual time taken (standard rate-actual rate) |
| Answer» A. Standard cost of labour - actual cost of labour | |
| 277. |
Volume Variance = |
| A. | Standard rate (Actual output-budgeted output) |
| B. | Actual output x standard rate-budgeted fixed overheads |
| C. | Standard rate per hour(standard hours produced-actual hours) |
| D. | All of the above |
| Answer» D. All of the above | |
| 278. |
A favourable variance will arise when capital revenues are………..than expected. |
| A. | More |
| B. | Less |
| C. | Lesser |
| D. | None of the above |
| Answer» A. More | |
| 279. |
An unfavourable material price variance occurs because of: |
| A. | Price increase in raw materials |
| B. | Price decrease in raw materials |
| C. | Less than anticipated normal wastage in the manufacturing process |
| D. | More than anticipated normal wastage in the manufacturing process |
| Answer» A. Price increase in raw materials | |
| 280. |
The type of standard best suitable for cost control purpose is |
| A. | Basic standard |
| B. | Ideal standard |
| C. | Normal standard |
| D. | Expected standard |
| Answer» D. Expected standard | |
| 281. |
An unfavourable material usage arises because of: |
| A. | Price increase in raw materials |
| B. | Price decrease in raw mateials |
| C. | Less than anticipated normal wastage in the manufacturing process |
| D. | More than anticipated normal wastage in the manufacturing process |
| Answer» D. More than anticipated normal wastage in the manufacturing process | |
| 282. |
Volume variance arises because of : |
| A. | Increase in overhead rate per hour |
| B. | Decrease in overhead rate per hour |
| C. | Increase or decrease in actual output as compared to the budgeted output. |
| D. | Difference in budgeted overheads and actual overheads. |
| Answer» C. Increase or decrease in actual output as compared to the budgeted output. | |
| 283. |
Labour rate variance is computed by multiplying the |
| A. | Standard labour rate with the difference between standard labour hours and actual labour hours |
| B. | Actual labour hours with the difference between standard labour hours and actual labour hours |
| C. | Actual labour rate with the difference between standard labour rate and actual labour hours. |
| D. | None of the above |
| Answer» D. None of the above | |
| 284. |
……………..is an example of long-term budget |
| A. | Cash budget |
| B. | Capital expenditure budget |
| C. | Research and development budget |
| D. | Both b & c |
| Answer» D. Both b & c | |
| 285. |
……………..is an example of short-term budget |
| A. | Cash budget |
| B. | Capital expenditure budget |
| C. | Material budget |
| D. | Both a & c |
| Answer» D. Both a & c | |
| 286. |
The main objective of cost accounting is: |
| A. | Ascertainment of cost |
| B. | Control of cost |
| C. | Determination of selling price |
| D. | All of the above |
| Answer» D. All of the above | |
| 287. |
The expected return or benefit foregone in rejecting one course of action for the other is known as |
| A. | sunk cost |
| B. | opportunity cost |
| C. | conversion cost |
| D. | differential cost |
| Answer» B. opportunity cost | |
| 288. |
Costs which are ascertained after they have been incurred are called |
| A. | imputed costs |
| B. | sunk costs |
| C. | historical costs |
| D. | marginal costs |
| Answer» C. historical costs | |
| 289. |
A cost centre is |
| A. | a production or service location, function, activity or item of equipment whose costs may be attributed to cost units |
| B. | acentre for which an individual budget is drawn-up |
| C. | acentre where cost is classified on the basis of variability |
| D. | an amount of expenditure attributable to an activity |
| Answer» A. a production or service location, function, activity or item of equipment whose costs may be attributed to cost units | |
| 290. |
These accounts are obligatory to be prepared according to the legal requirements of Companies Act and Income Tax Act. |
| A. | Cost Accounting |
| B. | Financial Accounting |
| C. | Management Accounting |
| D. | All of the above |
| Answer» B. Financial Accounting | |
| 291. |
The cost unit for a cement industry is |
| A. | Kilogram |
| B. | Dozen |
| C. | Tonne |
| D. | Square foot |
| Answer» C. Tonne | |
| 292. |
Hypothetical costs which are specially computed outside the accounting system for the purpose of decision making are called |
| A. | Replacement Cost |
| B. | Imputed Cost |
| C. | Marginal Cost |
| D. | Future Cost |
| Answer» B. Imputed Cost | |
| 293. |
Direct material + Directlabour + direct expenses = |
| A. | Prime Cost |
| B. | Works Cost |
| C. | Cost of Production |
| D. | Total Cost |
| Answer» A. Prime Cost | |
| 294. |
Costing is a technique of ascertaining: - |
| A. | Cost |
| B. | Profit |
| C. | Loss |
| D. | Standard |
| Answer» A. Cost | |
| 295. |
The cost can be controlled by: |
| A. | Standard Costing |
| B. | Budgetary Control |
| C. | Proper presentation |
| D. | All of these |
| Answer» D. All of these | |
| 296. |
It is a device for the purpose of breaking up cost into smaller sub-divisions:- |
| A. | Cost Unit |
| B. | Cost Control |
| C. | Cost center |
| D. | Prime cost |
| Answer» A. Cost Unit | |
| 297. |
Elements of cost are:- |
| A. | Direct materials |
| B. | Direct labors |
| C. | Overheads |
| D. | All of thesew |
| Answer» D. All of thesew | |
| 298. |
These types of costs are partly fixed & partly variable is relation to output:- |
| A. | Fixed Cost |
| B. | Variable Cost |
| C. | Semi-variable Cost |
| D. | Works Cost |
| Answer» C. Semi-variable Cost | |
| 299. |
Cost accounting has been developed because of limitation in:- |
| A. | Financial a/c |
| B. | Management a/c |
| C. | Prime Cost |
| D. | None of these |
| Answer» A. Financial a/c | |
| 300. |
The cost which is to be incurred even when a business unit is closed is a ____ cost. |
| A. | Imputed |
| B. | Historical |
| C. | Opportunity |
| D. | Shutdown |
| Answer» D. Shutdown | |
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