McqMate
| 101. |
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 | |
| 102. |
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 | |
| 103. |
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 | |
| 104. |
Taylors differential piece rate system provides for higher rate to …….workers. |
| A. | inefficient |
| B. | efficient |
| C. | both a & b |
| D. | lazy |
| Answer» B. efficient | |
| 105. |
…………………..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 | |
| 106. |
Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is |
| A. | 110000 |
| B. | 80000 |
| C. | 120000 |
| D. | 10000 |
| Answer» B. 80000 | |
| 107. |
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% | |
| 108. |
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% | |
| 109. |
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% | |
| 110. |
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 | |
| 111. |
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 | |
| 112. |
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 | |
| 113. |
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 | |
| 114. |
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 | |
| 115. |
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 | |
| 116. |
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 | |
| 117. |
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 | |
| 118. |
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 | |
| 119. |
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 | |
| 120. |
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 | |
| 121. |
….expenses are excluded from cost. |
| A. | normal |
| B. | abnormal |
| C. | both a & b |
| D. | none of these |
| Answer» B. abnormal | |
| 122. |
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 | |
| 123. |
………expenses are partly fixed and partly variable. |
| A. | all expenses |
| B. | variable |
| C. | fixed |
| D. | semi-variable |
| Answer» D. semi-variable | |
| 124. |
Unsuccessful research expenditure should be ......................... cost accounts. |
| A. | excluded from |
| B. | included in |
| C. | apportioned in |
| D. | none of these |
| Answer» A. excluded from | |
| 125. |
Salary paid to general manager is an item of………………expenses. |
| A. | fixed |
| B. | variable |
| C. | semi-variable |
| D. | estimated |
| Answer» A. fixed | |
| 126. |
Fancy packing is an example of .................. expenses. |
| A. | selling |
| B. | distribution |
| C. | administration |
| D. | factory |
| Answer» A. selling | |
| 127. |
Telephone expense is ......................expense. |
| A. | variable |
| B. | semi-variable |
| C. | fixed |
| D. | none of these |
| Answer» B. semi-variable | |
| 128. |
Primary packing is an item of ……………… |
| A. | selling overheads |
| B. | prime cost |
| C. | distribution overheads |
| D. | factory overheads |
| Answer» B. prime cost | |
| 129. |
The Profit/Volume ratio or marginal ratio expresses the relation of ……………… |
| A. | profit |
| B. | marginal cost |
| C. | contribution |
| D. | none of these |
| Answer» C. contribution | |
| 130. |
Which of the following measures helps to increase the P/V Ratio ? |
| A. | increasing the selling price per unit |
| B. | reducing the variable or marginal cost |
| C. | changing the sales mixture |
| D. | all of these |
| Answer» D. all of these | |
| 131. |
Credit and collection cost is an item of |
| A. | selling overhead |
| B. | office overhead |
| C. | prime cost |
| D. | administrative overhead |
| Answer» A. selling overhead | |
| 132. |
Warehousing cost is an item of |
| A. | office overhead |
| B. | distribution overhead |
| C. | material cost |
| D. | works overhead |
| Answer» B. distribution overhead | |
| 133. |
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 | |
| 134. |
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 | |
| 135. |
Printers use ......................... costing. |
| A. | process |
| B. | batch |
| C. | job |
| D. | contract |
| Answer» C. job | |
| 136. |
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 | |
| 137. |
An automobile service unit uses..........................costing. |
| A. | specific order |
| B. | batch |
| C. | job |
| D. | contract |
| Answer» C. job | |
| 138. |
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 | |
| 139. |
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 | |
| 140. |
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 | |
| 141. |
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 | |
| 142. |
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 | |
| 143. |
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 | |
| 144. |
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% | |
| 145. |
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 | |
| 146. |
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 | |
| 147. |
….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 | |
| 148. |
Room/day is the cost unit used in………………… |
| A. | hotels |
| B. | hospital |
| C. | schools |
| D. | none of these |
| Answer» A. hotels | |
| 149. |
Maintenance charges are in the nature of..............................expenses. |
| A. | fixed |
| B. | variable |
| C. | semi-variable |
| D. | none of these |
| Answer» C. semi-variable | |
| 150. |
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 | |
| 151. |
Service costing is called as ………………. |
| A. | operation costing |
| B. | operating costing |
| C. | multiple costing |
| D. | none of these |
| Answer» B. operating costing | |
| 152. |
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 | |
| 153. |
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 | |
| 154. |
Boiler house costing is an example of..........................costing |
| A. | operation |
| B. | process |
| C. | service |
| D. | none of these |
| Answer» C. service | |
| 155. |
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 | |
| 156. |
Service costing is not used in one of the following: |
| A. | electricity |
| B. | hospitals |
| C. | transport |
| D. | electronics |
| Answer» D. electronics | |
| 157. |
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 | |
| 158. |
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 | |
| 159. |
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 | |
| 160. |
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 | |
| 161. |
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 | |
| 162. |
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 | |
| 163. |
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 | |
| 164. |
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 | |
| 165. |
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 | |
| 166. |
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 | |
| 167. |
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 | |
| 168. |
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 | |
| 169. |
.............……….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 | |
| 170. |
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 | |
| 171. |
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 | |
| 172. |
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 | |
| 173. |
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 | |
| 174. |
The process costing is not used in one of the following. |
| A. | chemical |
| B. | textiles |
| C. | cement |
| D. | oil refining |
| Answer» C. cement | |
| 175. |
…..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 | |
| 176. |
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 | |
| 177. |
Budgeting system…................ key managerial functions. |
| A. | dismisses |
| B. | integrates |
| C. | discharges |
| D. | none of these |
| Answer» B. integrates | |
| 178. |
…….is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlierperiod. |
| A. | rolling budget |
| B. | continuous budget |
| C. | annual budget |
| D. | both a & b |
| Answer» D. both a & b | |
| 179. |
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 | |
| 180. |
…………………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 | |
| 181. |
…….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 | |
| 182. |
………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 | |
| 183. |
……….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 | |
| 184. |
…………..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 | |
| 185. |
……….budget gives differentbudgeted costs for different levels of activity. |
| A. | master |
| B. | fixed |
| C. | flexible |
| D. | all of these |
| Answer» C. flexible | |
| 186. |
…………………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 | |
| 187. |
…………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 | |
| 188. |
Basic objectives of cost accounting is . |
| A. | tax compliance. |
| B. | financial audit. |
| C. | cost ascertainment. |
| D. | profit analysis. |
| Answer» C. cost ascertainment. | |
| 189. |
Direct cost incurred can be identified with . |
| A. | each department. |
| B. | each unit of output. |
| C. | each month. |
| D. | each executive. |
| Answer» B. each unit of output. | |
| 190. |
Overhead cost is the total of . |
| A. | all indirect costs. |
| B. | all direct costs. |
| C. | indirect and direct costs. |
| D. | all specific costs. |
| Answer» A. all indirect costs. | |
| 191. |
Imputed cost is a . |
| A. | notional cost. |
| B. | real cost. |
| C. | normal cost. |
| D. | variable cost. |
| Answer» A. notional cost. | |
| 192. |
Operating costing is suitable for . |
| A. | job order business. |
| B. | contractors. |
| C. | sugar industries. |
| D. | service industries. |
| Answer» D. service industries. | |
| 193. |
Process costing is suitable for . |
| A. | hospitals. |
| B. | oil reefing firms. |
| C. | transport firms. |
| D. | brick laying firms. |
| Answer» B. oil reefing firms. | |
| 194. |
Cost classification can be done in . |
| A. | two ways. |
| B. | three ways. |
| C. | four ways. |
| D. | several ways. |
| Answer» D. several ways. | |
| 195. |
Costing refers to the techniques and processes of |
| A. | ascertainment of costs. |
| B. | allocation of costs. |
| C. | apportion of costs. |
| D. | distribution of costs. |
| Answer» A. ascertainment of costs. | |
| 196. |
Cost accounting was developed because of the . |
| A. | limitations of the financial accounting. |
| B. | limitations of the management accounting. |
| C. | limitations of the human resource accounting. |
| D. | limitations of the double entry accounting. |
| Answer» A. limitations of the financial accounting. | |
| 197. |
Multiple costing is a technique of using two or more costing methods for ascertainment of cost by. |
| A. | the same firm. |
| B. | the several firms. |
| C. | the same industry. |
| D. | the several industries. |
| Answer» A. the same firm. | |
| 198. |
Wages paid to a labour who was engaged in production activities can be termed as. |
| A. | direct cost. |
| B. | indirect cost. |
| C. | sunk cost. |
| D. | imputed cost. |
| Answer» A. direct cost. | |
| 199. |
The cost which is to be incurred even when a business unit is closed is a. |
| A. | imputed cost. |
| B. | historical cost. |
| C. | sunk cost. |
| D. | Shutdown cost. |
| Answer» D. Shutdown cost. | |
| 200. |
Classification of cost is useful . |
| A. | to find gross profit. |
| B. | to find net profit. |
| C. | to identify costs. |
| D. | to identify efficiency. |
| Answer» C. to identify costs. | |
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