McqMate
| 301. |
Indirect material used in production is classified as: - |
| A. | Office overhead |
| B. | Selling overhead |
| C. | Distribution overhead |
| D. | Factory overhead |
| Answer» D. Factory overhead | |
| 302. |
The cost per unit that increases or decreases when the volume of output decreases or increases is known as |
| A. | semi-variable cost |
| B. | fixed cost |
| C. | variable cost |
| D. | marginal cost |
| Answer» C. variable cost | |
| 303. |
Cost accounting has developed due to the ___________ of financial accounting |
| A. | Advantages |
| B. | Limitations |
| C. | Merits |
| D. | Expansion |
| Answer» B. Limitations | |
| 304. |
The method of costing most suitable for medicine manufacturing industry is: |
| A. | Unit Costing |
| B. | Process Costing |
| C. | Batch Costing |
| D. | Contract Costing |
| Answer» C. Batch Costing | |
| 305. |
Cost accountancy is considered an art because it _____ |
| A. | Has systematic body of knowledge |
| B. | requires necessary ability and skills |
| C. | involves continuous efforts of cost accountant |
| D. | None of the above |
| Answer» B. requires necessary ability and skills | |
| 306. |
The main objective of cost accounting is |
| A. | Recording of cost |
| B. | Fixation of selling price |
| C. | Cost control |
| D. | Maximize profit |
| Answer» C. Cost control | |
| 307. |
Cost accounting mainly helps the management in |
| A. | Earning profit |
| B. | Providing information to management |
| C. | Fixing prices of the products |
| D. | All of the above |
| Answer» B. Providing information to management | |
| 308. |
Costs incurred for the maintenance of inventory is called |
| A. | Carrying cost |
| B. | Ordering cost |
| C. | Period cost |
| D. | Explicit cost |
| Answer» A. Carrying cost | |
| 309. |
Absorption costing charges: |
| A. | Only fixed cost |
| B. | Only variable cost |
| C. | Both variable and fixed |
| D. | Some part of fixed cost |
| Answer» C. Both variable and fixed | |
| 310. |
An important feature of a cost centre is that: |
| A. | it uses only monetary information |
| B. | it has a clearly defined boundaries |
| C. | it must be one specific location only |
| D. | none of the above |
| Answer» B. it has a clearly defined boundaries | |
| 311. |
Prime cost may be correctly defined as |
| A. | the sum of direct materials and direct labour cost with all other costs excluded |
| B. | the total of all cost item |
| C. | the total cost incurred in producing a finished unit |
| D. | none of the above |
| Answer» A. the sum of direct materials and direct labour cost with all other costs excluded | |
| 312. |
The term “cost” refers to |
| A. | an asset that has given benefit and is now expired. |
| B. | the value of the sacrifice made to acquire goods or services |
| C. | the present value of future benefits |
| D. | none of the above |
| Answer» B. the value of the sacrifice made to acquire goods or services | |
| 313. |
Costing is a technique of |
| A. | ascertaining profit |
| B. | ascertaining variable cost |
| C. | ascertaining cost |
| D. | none of the above |
| Answer» C. ascertaining cost | |
| 314. |
Cost Accounting is a separate |
| A. | branch of accounting |
| B. | method of accounting |
| C. | system of accounting |
| D. | none of the above |
| Answer» A. branch of accounting | |
| 315. |
Cost Accounting serves the information needs of |
| A. | shareholders |
| B. | creditors |
| C. | management |
| D. | none of the above |
| Answer» C. management | |
| 316. |
Costs which remains constant at all level of production is a |
| A. | variable cost |
| B. | fixed cost |
| C. | sunk cost |
| D. | none of the above |
| Answer» B. fixed cost | |
| 317. |
An opportunity cost is |
| A. | the advantage forgone |
| B. | the disadvantage forgone |
| C. | the estimated cost |
| D. | none of the above |
| Answer» A. the advantage forgone | |
| 318. |
Three elements of cost are: |
| A. | Direct Material, Direct Labour, Direct Expenses |
| B. | Manufacturing Overheads, Office Expenses, Selling Overheads |
| C. | Labour, Material, Other Expense |
| D. | Material, Labour, Overheads |
| Answer» C. Labour, Material, Other Expense | |
| 319. |
Cost of production is equal to: |
| A. | Prime cost plus works costs |
| B. | Total cost minus Prime cost |
| C. | Works cost plus Administrative cost |
| D. | Prime cost plus Administrative cost |
| Answer» C. Works cost plus Administrative cost | |
| 320. |
Works cost include |
| A. | Direct Material + Direct Labour + Chargeable Expenses |
| B. | Direct Material + Direct Labour + Office Overheads |
| C. | Direct Material + Direct Labour + Direct Expenses + Works Expenses |
| D. | None of the above |
| Answer» C. Direct Material + Direct Labour + Direct Expenses + Works Expenses | |
| 321. |
Which of the following is not Selling and Distribution Expenses: |
| A. | Cost of samples |
| B. | Carriage outward |
| C. | Bad debts |
| D. | Primary packing material |
| Answer» D. Primary packing material | |
| 322. |
Profit is: |
| A. | Sales minus factory cost |
| B. | Sales minus cost of production |
| C. | Sales minus cost of sales |
| D. | Sales minus cost of goods sold |
| Answer» C. Sales minus cost of sales | |
| 323. |
Which of the following is not included in cost? |
| A. | Consumable stores |
| B. | Dividend |
| C. | Indirect labour |
| D. | Distribution overheads |
| Answer» B. Dividend | |
| 324. |
Value of material consumed is: |
| A. | Opening stock of material + Closing stock of material |
| B. | Opening stock of material + Purchases of material – Closing stock of material |
| C. | Average of opening and closing stock of material |
| D. | Purchase of material – Closing stock of material |
| Answer» B. Opening stock of material + Purchases of material – Closing stock of material | |
| 325. |
Specify the expenses excluded from costs: |
| A. | Direct or chargeable expenses |
| B. | Expenses of raising capital |
| C. | Selling overheads |
| D. | Indirect labour |
| Answer» B. Expenses of raising capital | |
| 326. |
In this technique of selective control, materials are analysed according to their value so that costly and more valuable materials are given greater attention and care |
| A. | Economic order quantity |
| B. | ABC technique |
| C. | Material budgets |
| D. | Minimum level |
| Answer» B. ABC technique | |
| 327. |
. This is a level at which normal issues of materials are stopped and urgent action is taken for procurement of materials |
| A. | Minimum level |
| B. | Maximum level |
| C. | Re-order level |
| D. | Danger level |
| Answer» D. Danger level | |
| 328. |
The purchasing system where there is a separate purchasing department entrusted with the task of making all purchases is called |
| A. | Centralised purchasing system |
| B. | Decentralised purchasing system |
| C. | Just in Time (JIT) Purchases |
| D. | Store-Keeping |
| Answer» A. Centralised purchasing system | |
| 329. |
A container in which material is kept is known as |
| A. | Stores ledger |
| B. | Material return note |
| C. | Bin card |
| D. | None of the above |
| Answer» C. Bin card | |
| 330. |
The method of recording stores balances after each receipt and issue to facilitate regular checking is known as |
| A. | Periodic Inventory System |
| B. | Perpetual Inventory System |
| C. | Store-keeping |
| D. | None of the above |
| Answer» B. Perpetual Inventory System | |
| 331. |
A material loss during production or storage due to evaporation or shrinkage is called: |
| A. | Scrap |
| B. | Waste |
| C. | Spoilage |
| D. | Material loss |
| Answer» B. Waste | |
| 332. |
The use of FIFO method in material issue control is more suitable when |
| A. | prices are constant for a long time |
| B. | prices are constantly fluctuating |
| C. | prices are falling |
| D. | prices are rising |
| Answer» D. prices are rising | |
| 333. |
The use of LIFO method in material issue control is more suitable when |
| A. | prices are constant for a long time |
| B. | prices are constantly fluctuating |
| C. | prices are falling |
| D. | prices are rising |
| Answer» C. prices are falling | |
| 334. |
Annual usage, ₹ 1,20,000.00, cost of placing ₹ 60.00 & annual carrying cost is 10% of the inventory value. The EOQ will be:- |
| A. | ₹ 12,000.00 |
| B. | ₹ 10,000.00 |
| C. | ₹ 8,000.00 |
| D. | ₹ 6,000.00 |
| Answer» A. ₹ 12,000.00 | |
| 335. |
Purchase requisitions is generally prepared in: |
| A. | Duplicate |
| B. | Triplicate |
| C. | Original |
| D. | None of these |
| Answer» B. Triplicate | |
| 336. |
A record of both quantities & values maintained by the costing department is called: |
| A. | Bin card |
| B. | Stores ledger |
| C. | Stores records |
| D. | Purchase order |
| Answer» B. Stores ledger | |
| 337. |
Under which method materials received first are issued first? |
| A. | LIFO |
| B. | FIFO |
| C. | HIFO |
| D. | None of these |
| Answer» B. FIFO | |
| 338. |
If maximum consumption is 300 units per day; minimum consumption is 200 units per day; and re-order period is 8 to 10 days, then what will be the re-order level? |
| A. | 3,000 units |
| B. | 4,000 units |
| C. | 1,500 units |
| D. | 2,400 units |
| Answer» A. 3,000 units | |
| 339. |
Indirect material scrap is adjusted along with: - |
| A. | Prime Cost |
| B. | Factory Cost |
| C. | Labor Cost |
| D. | Cost of goods sold |
| Answer» B. Factory Cost | |
| 340. |
A written request to a supplier for specified goods at an agreed price is called: - |
| A. | Purchase order |
| B. | Purchase requisition |
| C. | Receiving report |
| D. | Making Payment |
| Answer» B. Purchase requisition | |
| 341. |
Direct material is a____________- |
| A. | Manufacturing Cost |
| B. | Administrative Cost |
| C. | Selling Cost |
| D. | Distribution Cost |
| Answer» A. Manufacturing Cost | |
| 342. |
A Bill of Materials is ________ |
| A. | An invoice of materials purchased |
| B. | A voucher of materials received by supplier |
| C. | A document that shows all the materials required for a job |
| D. | None of these |
| Answer» C. A document that shows all the materials required for a job | |
| 343. |
The number of Goods Received Note required to be prepared is: |
| A. | Six |
| B. | Five |
| C. | Four |
| D. | Three |
| Answer» B. Five | |
| 344. |
Economic order quantity is a tool for controlling ___________ |
| A. | Inventory |
| B. | Price |
| C. | Machinery |
| D. | Cost |
| Answer» A. Inventory | |
| 345. |
The purchase requisition is generally prepared in: |
| A. | Duplicate |
| B. | Triplicate |
| C. | Quadruplicate |
| D. | Five copies |
| Answer» B. Triplicate | |
| 346. |
Bin card is maintained by ____ |
| A. | Accounts department |
| B. | Costing department |
| C. | Stores department |
| D. | Purchase department |
| Answer» C. Stores department | |
| 347. |
_____ is the time between placement of an order and obtaining delivery. |
| A. | Purchase time |
| B. | Lead time |
| C. | Reordering time |
| D. | Emergency delivery time |
| Answer» B. Lead time | |
| 348. |
_______ technique is a selective control of materials |
| A. | ABC |
| B. | Inventory turnover ratio |
| C. | Input output ratio |
| D. | EOQ |
| Answer» A. ABC | |
| 349. |
Which document is prepared to transfer material from one job to the other job? |
| A. | Material Transfer Note |
| B. | Material Return Note |
| C. | Shop Credit Note |
| D. | Bill of materials |
| Answer» A. Material Transfer Note | |
| 350. |
A technique of inventory control where materials are analyzed according to their values so that costly and more valuable materials are given greater attention and care. |
| A. | Economic Order Quantity |
| B. | ABC technique |
| C. | Stock Level |
| D. | Perpetual inventory system |
| Answer» B. ABC technique | |
| 351. |
The level above which stock should not normally be allowed to rise. |
| A. | Minimum Level |
| B. | Danger level |
| C. | Re-order Level |
| D. | Maximum Level |
| Answer» D. Maximum Level | |
| 352. |
Materials which have no demand at present and may be required in future. |
| A. | Dormant Materials |
| B. | Obsolete materials |
| C. | Slow Moving materials |
| D. | Material in progress |
| Answer» A. Dormant Materials | |
| 353. |
A formal request by the Head of Department or an authorised officer to the purchase manager to the purchase manager to purchase specified materials. |
| A. | Material Transfer Note |
| B. | Bill of Materials |
| C. | Purchase Requisition |
| D. | Stores Requisition Note |
| Answer» C. Purchase Requisition | |
| 354. |
Bin card is a record of _________ only. |
| A. | Cost |
| B. | Expenses |
| C. | Value |
| D. | Quantity |
| Answer» D. Quantity | |
| 355. |
Method of pricing materials issued which is based upon the assumption that materials which are purchased first are issued first. |
| A. | LIFO |
| B. | FIFO |
| C. | HIFO |
| D. | NIFO |
| Answer» B. FIFO | |
| 356. |
The practice of purchasing where all purchase functions is done through one department only. |
| A. | Centralised Purchasing |
| B. | Decentralised Purchasing |
| C. | Just-in-time Purchasing |
| D. | Single Purchasing |
| Answer» A. Centralised Purchasing | |
| 357. |
If re-ordering level is 450 units while consumption of materials are 25-27 units and materials are received within 4-6 weeks, the minimum level will be |
| A. | 100 units |
| B. | 200 units |
| C. | 150 units |
| D. | 250 units |
| Answer» B. 200 units | |
| 358. |
A request sent to the purchasing department of a need for materials is called a: |
| A. | Purchase requisition |
| B. | Purchase order |
| C. | Inspection note |
| D. | None of the above |
| Answer» A. Purchase requisition | |
| 359. |
Which of the following is not direct material? |
| A. | Raw material |
| B. | Primary packing material |
| C. | Consumable stores |
| D. | Parts or components specifically purchased |
| Answer» C. Consumable stores | |
| 360. |
The original copy of the purchase order is sent to: |
| A. | The receiving department |
| B. | The person who initiated the purchase requisition |
| C. | The supplier |
| D. | The accounting department |
| Answer» C. The supplier | |
| 361. |
Economic order quantity is: |
| A. | The maximum quantity |
| B. | The minimum quantity |
| C. | The most economic order quantity |
| D. | None of the above |
| Answer» C. The most economic order quantity | |
| 362. |
The purchase requisition is generally prepared in: |
| A. | Duplicate |
| B. | Triplicate |
| C. | Quadruplicate |
| D. | Five copies |
| Answer» C. Quadruplicate | |
| 363. |
In which method of material issues, production is charged at the recent prices? |
| A. | LIFO |
| B. | Simple Average |
| C. | FIFO |
| D. | Base Stock |
| Answer» A. LIFO | |
| 364. |
Stores Ledger: |
| A. | makes a record of quantities only |
| B. | is maintained by the storekeeper |
| C. | is usually kept inside the stores |
| D. | makes a record of both quantities and values |
| Answer» D. makes a record of both quantities and values | |
| 365. |
Bin card is maintained by: |
| A. | Personnel Manager |
| B. | Store-keeper |
| C. | Cost Accountant |
| D. | Accountant |
| Answer» B. Store-keeper | |
| 366. |
The cost of labour which is directly engaged in production work and can be conveniently identified to a job, process or cost unit is |
| A. | Indirect labour cost |
| B. | Direct labour cost |
| C. | Total labour cost |
| D. | None of the above |
| Answer» B. Direct labour cost | |
| 367. |
The rate of change in the composition of the labour force in an organization is known as |
| A. | Labour ratio |
| B. | Replacement Rate |
| C. | Labour Turnover |
| D. | Overtime |
| Answer» C. Labour Turnover | |
| 368. |
This is one of the avoidable causes of labour turnover. |
| A. | Accident |
| B. | Poor Health |
| C. | Labour Relation |
| D. | Retirement |
| Answer» C. Labour Relation | |
| 369. |
Recording time for attendance purpose and for calculation of wages is done through |
| A. | Time –keeping |
| B. | Time – booking |
| C. | Work study |
| D. | Motion study |
| Answer» B. Time – booking | |
| 370. |
The objectives of time-booking is |
| A. | To ensure the time is properly utilized by the workers |
| B. | To ascertain the labour cost of work done |
| C. | To provide a basis for apportionment of overheads |
| D. | All of the above |
| Answer» D. All of the above | |
| 371. |
Wages under this system is paid for the time worked irrespective of the volume of production during that time |
| A. | Time Rate System |
| B. | Piece Rate System |
| C. | Incentive Schemes |
| D. | None of the above |
| Answer» A. Time Rate System | |
| 372. |
Under Piece Rate System wages are paid according to |
| A. | the time worked |
| B. | the quantity of work |
| C. | the quality of production |
| D. | the efficiency of workers |
| Answer» B. the quantity of work | |
| 373. |
The following is an example of indirect labour cost |
| A. | Wages of Peon |
| B. | Wages of a Machine Operator |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» A. Wages of Peon | |
| 374. |
In the Halsey Premium Plan, bonus is usually set at what % of the time saved? |
| A. | 50% |
| B. | 30% |
| C. | 40% |
| D. | 10% |
| Answer» A. 50% | |
| 375. |
Under piece rate system of wage payment, payment is made according to the: - |
| A. | Time worked |
| B. | Pieces produced |
| C. | No. of hours |
| D. | None of these |
| Answer» B. Pieces produced | |
| 376. |
The manual methods of time keeping are:- |
| A. | Attendance Register Method |
| B. | Dial time records |
| C. | Time recording clocks |
| D. | All of these |
| Answer» A. Attendance Register Method | |
| 377. |
This sheet is the daily record of the work done by a worker on different jobs: - |
| A. | Daily time sheets |
| B. | Weekly time sheets |
| C. | Job cards |
| D. | Combined job cards |
| Answer» A. Daily time sheets | |
| 378. |
The work done beyond the normal work period is called: - |
| A. | Idle time |
| B. | Overtime |
| C. | Normal time |
| D. | Standard time |
| Answer» B. Overtime | |
| 379. |
The principle of this system is to penalize the slow worker by paying him a low piece rate for low production: - |
| A. | Merrick’s Multiple Piece rate system |
| B. | Straight Piece rate system |
| C. | Taylor’s Differential Piece rate system |
| D. | Gant Task bonus plan |
| Answer» C. Taylor’s Differential Piece rate system | |
| 380. |
In which system, output cannot be measured? |
| A. | Piece rate system |
| B. | Time rate system |
| C. | Halsey Plan |
| D. | Rowan Plan |
| Answer» B. Time rate system | |
| 381. |
Monetary benefits include: - |
| A. | Basic wages |
| B. | Subsidized food |
| C. | Medical facilities |
| D. | Subsidized housing |
| Answer» A. Basic wages | |
| 382. |
A document used for time keeping |
| A. | Job card |
| B. | Time card |
| C. | Daily time sheet |
| D. | All of these |
| Answer» B. Time card | |
| 383. |
Idle Time is |
| A. | Time spent by workers to take lunch |
| B. | Time spent by workers on their jobs |
| C. | Time spent by workers in the factory |
| D. | The difference between time paid for and time spent on job |
| Answer» D. The difference between time paid for and time spent on job | |
| 384. |
Wage sheet is prepared by |
| A. | Payrolldepartment |
| B. | Personnel department |
| C. | Time keeping department |
| D. | Costing department |
| Answer» A. Payrolldepartment | |
| 385. |
Labour turnover represents |
| A. | The strength of labour in a firm |
| B. | The change in the labour force |
| C. | The efficiency of the labour force |
| D. | The cost of the labour incurred |
| Answer» B. The change in the labour force | |
| 386. |
In which of the following plans, time wages are not guaranteed? |
| A. | Halsey |
| B. | Rowan |
| C. | Taylor |
| D. | Gantt |
| Answer» C. Taylor | |
| 387. |
Standard time for a job is 8 hours and actual time taken is 6 hours. What is the total wages payable under Halsey plan if wage rate is Rs. 10 per hour? |
| A. | ` 90 |
| B. | `80 |
| C. | ` 70 |
| D. | ` 60 |
| Answer» B. `80 | |
| 388. |
According to Merrick’s multiple piece rate system, the piece rate applicable to a worker with an efficiency of 100 % or above is _____ of normal piece rate |
| A. | 100% |
| B. | 110% |
| C. | 120% |
| D. | 150% |
| Answer» C. 120% | |
| 389. |
Which of the following methods of wage payment does not guarantee wages on time basis? |
| A. | Piece rate system |
| B. | Time rate system |
| C. | Halsey premium system |
| D. | None of the above |
| Answer» A. Piece rate system | |
| 390. |
Labour which takes an active and direct part in the production of a product is known as |
| A. | direct labour |
| B. | manufacturing labour |
| C. | process labour |
| D. | All of the above |
| Answer» D. All of the above | |
| 391. |
Indirect labour costs do not include |
| A. | inspector’s wages |
| B. | assigned workman’s wages |
| C. | watchman’s wages |
| D. | cleaner’s wages |
| Answer» B. assigned workman’s wages | |
| 392. |
________ is concerned with the recording of time of workers for the purpose of attendance and wage calculations. |
| A. | Roll call |
| B. | Recording |
| C. | Timekeeping |
| D. | Timebooking |
| Answer» C. Timekeeping | |
| 393. |
The methods of time booking do not include |
| A. | Attendance Records |
| B. | Weekly Time Sheets |
| C. | Labour Cost Card |
| D. | Daily Time Sheet |
| Answer» A. Attendance Records | |
| 394. |
When there are frequent changes in the labour force, labour turnover is said to be |
| A. | unstable |
| B. | high |
| C. | low |
| D. | stable |
| Answer» B. high | |
| 395. |
Replacement cost of labour includes cost of |
| A. | providing medical services |
| B. | providing housing |
| C. | employer’s contribution to provident fund |
| D. | training new workers |
| Answer» D. training new workers | |
| 396. |
When remuneration is paid based on units produced, the system is called |
| A. | bonus system |
| B. | time rate system |
| C. | premium plan |
| D. | piece rate system |
| Answer» D. piece rate system | |
| 397. |
Idle time does not include |
| A. | normal idle time |
| B. | abnormal idle time |
| C. | overtime |
| D. | All of the above |
| Answer» C. overtime | |
| 398. |
Which of the following is not direct labour: |
| A. | Assembly-line workers |
| B. | Machine operators |
| C. | Manual workers |
| D. | Time-keeper |
| Answer» D. Time-keeper | |
| 399. |
Labour flux rate denotes the: |
| A. | Change in workforce |
| B. | Number of employees leaving the organization |
| C. | Average number of employees |
| D. | Total change in composition of labour force due to additions and separations of workers. |
| Answer» D. Total change in composition of labour force due to additions and separations of workers. | |
| 400. |
Which of the following document is not used for time booking? |
| A. | Weekly Time Sheets |
| B. | Time Card |
| C. | Daily Time Sheets |
| D. | Job Tickets |
| Answer» B. Time Card | |
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