330+ Cost and Management Accounting (CMA) Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Uncategorized topics .

Take a Test

1.	……….provides information for income determination.
A.	financial accounting
B.	cost accounting
C.	management accounting
D.	none of these
Answer» A. financial accounting

discuss

2.	helps in ascertaining costs beforehand.
A.	financial accounting
B.	cost accounting
C.	management accounting
D.	none of these
Answer» B. cost accounting

discuss

3.	The scope of cost accounting include…………..,…………… and……………
A.	cost ascertainment, cost presentation, cost control
B.	tax planning, tax accounting, financial accounting
C.	presentation of accounting information, creation of policy, day-to day operation
D.	none of the above
Answer» A. cost ascertainment, cost presentation, cost control

discuss

4.	Cost accounting disclose …………….
A.	the financial position
B.	profit/loss of a product, job or service
C.	effect and impact of cost on business
D.	none of these
Answer» B. profit/loss of a product, job or service

discuss

5.	….is a post mortem of past costs.
A.	financial accounting
B.	cost accounting
C.	both a & b
D.	none of these
Answer» A. financial accounting

discuss

6.	…..aids in price fixation.
A.	financial accounting
B.	cost accounting
C.	management accounting
D.	none of these
Answer» B. cost accounting

discuss

7.	………is the oldest branch of accounting.
A.	financial accounting
B.	cost accounting
C.	management accounting
D.	none of these
Answer» A. financial accounting

discuss

8.	……….includes financial and cost accounting, tax planning and tax accounting.
A.	financial accounting
B.	cost accounting
C.	management accounting
D.	none of these
Answer» C. management accounting

discuss

9.	In automobile,..............................costing is used
A.	process
B.	batch
C.	multiple
D.	job
Answer» C. multiple

discuss

10.	Service costing is used in industries producing………………
A.	products
B.	service
C.	both a & b
D.	none of these
Answer» B. service

discuss

11.	……….costing is applicable to printers.
A.	process
B.	batch
C.	multiple
D.	job
Answer» D. job

discuss

12.	Process costing is also known as…......................costing.
A.	continuous
B.	batch
C.	multiple
D.	job
Answer» A. continuous

discuss

13.	Operating costing is also known as........................costing.
A.	service
B.	batch
C.	multiple
D.	job
Answer» A. service

discuss

14.	costing is a type or technique of costing.
A.	marginal
B.	batch
C.	multiple
D.	job
Answer» A. marginal

discuss

15.	……….costing is a type or technique of costing.
A.	absorption
B.	batch
C.	multiple
D.	job
Answer» A. absorption

discuss

16.	…………is not the scope ofCost Accountancy.
A.	ascertaining cost
B.	cost accounting
C.	cost control
D.	tax planning
Answer» D. tax planning

discuss

17.	Cost Accounting has been developed becauseof….........................of Financial Accounting.
A.	limitations
B.	advantages
C.	both a & b
D.	none of these
Answer» A. limitations

discuss

18.	Cost Accountancy is the science, art and ……………….of a costaccountant.
A.	practice
B.	exercise
C.	hard work
D.	effort
Answer» A. practice

discuss

19.	The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….
A.	key
B.	lock
C.	house
D.	none of these
Answer» A. key

discuss

20.	Cost accounts deal partly with facts and figures and partly with………
A.	estimates
B.	costs
C.	income
D.	revenue
Answer» A. estimates

discuss

21.	Cost accounting provides data for managerial…………….
A.	decision making
B.	recruitment
C.	retrenchment
D.	none of the above.
Answer» A. decision making

discuss

22.	Cost accounting is based on…......................figures.
A.	estimated
B.	historical
C.	actual
D.	none of these.
Answer» A. estimated

discuss

23.	Cost accounting provides detailed information about .................................of various products, processes, services and operations.
A.	costs
B.	income
C.	either a or b
D.	none of these.
Answer» A. costs

discuss

24.	Cost accounting records both monetary and.......................units.
A.	physical
B.	cost
C.	both a & b
D.	none of these.
Answer» A. physical

discuss

25.	The method of costing used in a refinery is… .................. costing.
A.	process
B.	batch
C.	multiple
D.	job
Answer» A. process

discuss

26.	………costing is used in transport undertakings.
A.	process
B.	service
C.	multiple
D.	job
Answer» B. service

discuss

27.	The total variable cost.......................................in total proportion to output.
A.	increases
B.	does not increase
C.	decreases
D.	none of these.
Answer» A. increases

discuss

28.	Variable cost per unit ……….…………...
A.	remains constant
B.	varies
C.	decreases
D.	increases
Answer» A. remains constant

discuss

29.	Sunk costs are.............................for decision-making
A.	irrelevant
B.	relevant
C.	useful
D.	none of these.
Answer» A. irrelevant

discuss

30.	Costing and cost accounting are …………...
A.	not the same
B.	one and the same
C.	not related at all
D.	none of these.
Answer» A. not the same

discuss

31.	Fixed cost ...................................in the same proportion in which output changes.
A.	does not change
B.	changes
C.	increases
D.	none of these.
Answer» A. does not change

discuss

32.	Administration expenses are mostly……………….
A.	semi-variable
B.	variable
C.	fixed
D.	none of these.
Answer» C. fixed

discuss

33.	Abnormal cost is …………………..
A.	uncontrollable
B.	controllable
C.	fixed
D.	none of these
Answer» A. uncontrollable

discuss

34.	Cost of production is equal to ……………………
A.	works cost plus administration overheads
B.	prime cost plus works cost
C.	prime cost plus works overhead
D.	works overhead plus administration overheads
Answer» A. works cost plus administration overheads

discuss

35.	Variable cost increases with.................. in output.
A.	increase
B.	decrease
C.	increase or decrease
D.	none of these.
Answer» A. increase

discuss

36.	Accounting provides information for cost control.
A.	financial
B.	cost
C.	human resource
D.	none of these.
Answer» B. cost

discuss

37.	………is one which can be conveniently identified with and charged to a particular unit of cost.
A.	direct cost
B.	indirect cost
C.	overhead
D.	none of these
Answer» A. direct cost

discuss

38.	Cost centre and cost unit are……………………
A.	not the same
B.	the same
C.	not related
D.	none of these
Answer» A. not the same

discuss

39.	Fixed cost per unit …………………… with rise in output and …………… with fall in output.
A.	decreases, increases
B.	increases, decreases
C.	is constant, remains same
D.	none of the above
Answer» A. decreases, increases

discuss

40.	Period costs charged to……………….
A.	cost of production
B.	products
C.	period
D.	none of these
Answer» C. period

discuss

41.	Standard costs is…………………..
A.	predetermined cost
B.	budgeted cost
C.	actual cost
D.	none of these
Answer» A. predetermined cost

discuss

42.	……………………are costs which have been applied against revenue of particular accounting period.
A.	expenses
B.	income
C.	loss
D.	none of these
Answer» A. expenses

discuss

43.	.....................…………is the smallest segment of activity or area or responsibility for which costs are accumulated.
A.	cost object
B.	cost centre
C.	cost driver
D.	none of the above
Answer» B. cost centre

discuss

44.	The primary emphasis of.......................... cost is on the planning function of management.
A.	budgeted
B.	standard
C.	period
D.	none of these
Answer» A. budgeted

discuss

45.	……….cost is irrecoverable cost.
A.	marginal
B.	out of pocket
C.	sunk
D.	none of these
Answer» C. sunk

discuss

46.	……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

discuss

47.	………..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

discuss

48.	……………is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternativeuse.
A.	opportunity
B.	incremental revenue
C.	alternative revenue
D.	none of these
Answer» A. opportunity

discuss

49.	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

discuss

50.	The total of all direct expenses is known as ................... cost.
A.	prime
B.	works
C.	production
D.	both a & b
Answer» A. prime

discuss ⁽¹⁾

330+ Cost and Management Accounting (CMA) Solved MCQs

……….provides information for income determination.

helps in ascertaining costs beforehand.

The scope of cost accounting include…………..,…………… and……………

Cost accounting disclose …………….

….is a post mortem of past costs.

…..aids in price fixation.

………is the oldest branch of accounting.

……….includes financial and cost accounting, tax planning and tax accounting.

In automobile,..............................costing is used

Service costing is used in industries producing………………

……….costing is applicable to printers.

Process costing is also known as…......................costing.

Operating costing is also known as........................costing.

costing is a type or technique of costing.

……….costing is a type or technique of costing.

…………is not the scope ofCost Accountancy.

Cost Accounting has been developed becauseof….........................of Financial Accounting.

Cost Accountancy is the science, art and ……………….of a costaccountant.

The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….

Cost accounts deal partly with facts and figures and partly with………

Cost accounting provides data for managerial…………….

Cost accounting is based on…......................figures.

Cost accounting provides detailed information about .................................of various products, processes, services and operations.

Cost accounting records both monetary and.......................units.

The method of costing used in a refinery is… .................. costing.

………costing is used in transport undertakings.

The total variable cost.......................................in total proportion to output.

Variable cost per unit ……….…………...

Sunk costs are.............................for decision-making

Costing and cost accounting are …………...

Fixed cost ...................................in the same proportion in which output changes.

Administration expenses are mostly……………….

Abnormal cost is …………………..

Cost of production is equal to ……………………

Variable cost increases with.................. in output.

Accounting provides information for cost control.

………is one which can be conveniently identified with and charged to a particular unit of cost.

Cost centre and cost unit are……………………

Fixed cost per unit …………………… with rise in output and …………… with fall in output.

Period costs charged to……………….

Standard costs is…………………..

……………………are costs which have been applied against revenue of particular accounting period.

.....................…………is the smallest segment of activity or area or responsibility for which costs are accumulated.

The primary emphasis of.......................... cost is on the planning function of management.

……….cost is irrecoverable cost.

……is the value of a benefit where no actual cost is incurred.

………..is the cost which involves payment to outsiders.

……………is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternativeuse.

An item of cost that is direct for one business may be ......................for another business.

The total of all direct expenses is known as ................... cost.