…………………..does not deal with the accumulation, classification, analysis, allocation,
summarization, interpretation, reporting and control of current and perspective costs.
A.
Cost Accounting
B.
Financial Accounting
C.
Cost Accountancy
D.
Practice
Answer»
B. Financial Accounting
2.
The amount of expenditure incurred on, or attributable to, a specified thing or an activity or
cost unit is known as
A.
Product
B.
Cost
C.
Batch
D.
Financial Accounting
Answer»
B. Cost
3.
The aggregate amount of all the items of expenses paid or payable for the particular product
or service is called as
A.
Direct cost
B.
Committed cost
C.
Total Cost
D.
Marginal cost
Answer»
C. Total Cost
4.
…………..cost represents the increase or decrease in total cost which occurs with change in
output.
A.
Conversion cost
B.
Marginal cost
C.
Explicit cost
D.
Method
Answer»
B. Marginal cost
5.
The expenses which can be directly charged to jobs, products, processes, cost centers or cost
units is termed as
A.
Direct Cost
B.
Indirect Cost
C.
Committed Cost
D.
Reduction of cost
Answer»
A. Direct Cost
6.
The Technique and ………….of ascertaining the cost is known as Costing.
A.
Batch
B.
Method
C.
Process
D.
Batch costing
Answer»
C. Process
7.
………….is applied where production is carried out as per specific order and customer
specifications.
A.
Batch costing
B.
Job costing
C.
Contract costing
D.
Fixed expense
Answer»
B. Job costing
8.
Marginal costing is also known as ………………….. costing
A.
Variable
B.
Semi-variable
C.
Fixed
D.
Historical costing
Answer»
A. Variable
9.
…………..is the system of costing under which costs are determined after they
have been incurred.
A.
Uniform costing
B.
Historical costing
C.
Standard costing
D.
Cost Accounting
Answer»
B. Historical costing
10.
The branch of accounting dealing with the classification, recording, allocation,
summarization and reporting of current and prospective costs is known as
A.
Cost Accountancy
B.
Costing
C.
Cost Accounting
D.
Advantages
Answer»
C. Cost Accounting
11.
The term…………………. is comprehensively used to include various aspects such as
costing, cost accounting, cost control, cost audit and budgetary control.
A.
Cost Accountancy
B.
Costing
C.
Cost Accounting
D.
Inventory control
Answer»
A. Cost Accountancy
12.
……………….is concerned with ascertainment of cost.
A.
Cost Accountancy
B.
Costing
C.
Cost Accounting
D.
Management control
Answer»
B. Costing
13.
……………… is concerned with accounting and recording of costs.
A.
Cost Accountancy
B.
Costing
C.
Cost Accounting
D.
Ascertainment of cost
Answer»
C. Cost Accounting
14.
………………………..is concerned with formulation and / or application of principles, methods
and techniques of costing.
A.
Cost Accountancy
B.
Costing
C.
Cost Accounting
D.
Calculation of cost
Answer»
A. Cost Accountancy
15.
The evolution of cost accounting took place because of…………………….of financial
accounting.
A.
Advantages
B.
Limitations
C.
Merits
D.
Management control
Answer»
B. Limitations
16.
…………………helps the management to eliminate inefficiencies caused by material
wastage, use of obsolete machinery, improper planning etc.
A.
Financial Accounting
B.
Cost Accounting
C.
Environmental Accounting
D.
Management control
Answer»
B. Cost Accounting
17.
……………….covers accounts of whole business relating to all commercial transactions.
A.
Cost Accounting
B.
Financial Accounting
C.
Environmental Accounting
D.
Reduction of cost
Answer»
B. Financial Accounting
18.
A unit of quantity of product, service or time, in relation to which cost may be ascertained
or expressed is known as .
A.
Cost Centre
B.
Cost Sheet
C.
Cost Unit
D.
none
Answer»
C. Cost Unit
19.
A location, person or item of equipment for which costs may be ascertained and used for
the purposes of cost control is known as .
A.
Cost Centre
B.
Cost Sheet
C.
Cost Unit
D.
both (a) and (b)
Answer»
A. Cost Centre
20.
The cost unit for the Gas Industry is…………….
A.
Per gallon
B.
Per tonne
C.
Cubic Meter
D.
Calculation of cost
Answer»
C. Cubic Meter
21.
Costing is a technique of……….
A.
Inventory control
B.
Management control
C.
Ascertainment of cost
D.
Calculation of cost
Answer»
A. Inventory control
22.
Cost accounting has been developed because of………………financial accounting.
A.
Limitations
B.
Expenditure
C.
Statutory requirements
D.
both (a) and (b)
Answer»
B. Expenditure
23.
Cost accountancy is the science, art and of cost accountant.
A.
Profession
B.
Management
C.
Administration
D.
Practice
Answer»
D. Practice
24.
In automobile industry cost unit is…………
A.
Number
B.
Automobile quality
C.
Number of automobile industry
D.
Either (a) or (c)
Answer»
B. Automobile quality
25.
Cost unit in a college may be…………
A.
teacher
B.
Non teacher staff
C.
Student
D.
Number of departments
Answer»
C. Student
26.
costing is suitable for mines, quarries, cement works etc.
A.
Process
B.
Contract
C.
Batch
D.
Operation
Answer»
D. Operation
27.
…………is an extension of job costing.
A.
Process costing
B.
Batch costing
C.
Contract costing
D.
Operation costing
Answer»
B. Batch costing
28.
When job is very big and spread over long periods of time the method of costing adopted
is……
A.
Process
B.
Job
C.
Contract
D.
Operation
Answer»
C. Contract
29.
Continuous costing is also called
A.
Operation costing
B.
Process costing
C.
Batch costing
D.
Contract costing
Answer»
B. Process costing
30.
The methods of job evaluation include:
A.
Grading
B.
Ranking
C.
Points value
D.
All of the above
Answer»
D. All of the above
31.
Cost accounting is based on……………..figures.
A.
Approximated
B.
Estimated
C.
Historical
D.
Either (a) or (c)
Answer»
B. Estimated
32.
costing is used in transport undertaking.
A.
Operating
B.
Standard
C.
Marginal
D.
Service
Answer»
D. Service
33.
In………………costing the cost of a group of products is ascertained.
A.
Process
B.
Job
C.
Batch
D.
Service
Answer»
C. Batch
34.
The total of all direct expenses is known as ………
A.
Total cost
B.
Overhead
C.
Prime cost
D.
Work cost
Answer»
C. Prime cost
35.
An opportunity cost is a………..
A.
Direct expense
B.
Indirect expense
C.
Variable expense
D.
Fixed expense
Answer»
A. Direct expense
36.
The term………… is the one which is identifiable as belonging exclusively to a particular
process, product, and unit.
A.
Direct Cost
B.
Indirect Cost
C.
Standard Cost
D.
none
Answer»
A. Direct Cost
37.
Every……………of cost is divided into direct cost and indirect cost.
A.
Factor
B.
Element
C.
Part
D.
none
Answer»
B. Element
38.
Direct …………….are those which can be identified in the product and can be measured.
A.
Expenses
B.
Labour
C.
Material
D.
none
Answer»
C. Material
39.
The cost of direct material is termed as…………..
A.
Direct labour cost
B.
Direct material cost
C.
Overheads
D.
none
Answer»
B. Direct material cost
40.
All workers who are directly engaged in manufacturing activity are known as
……………labour.
A.
Direct
B.
Indirect
C.
Contract
D.
none
Answer»
A. Direct
41.
Wages paid to direct workers are known as ………….
A.
Direct labour cost
B.
Indirect labour cost
C.
Direct material cost
D.
none
Answer»
A. Direct labour cost
42.
Wages paid to direct labour are also known as………………wages.
A.
Productive
B.
Compensative
C.
Indirect
D.
none
Answer»
A. Productive
43.
Wages paid to carpenter is the example of direct…………...
A.
Material
B.
Overheads
C.
Labour
D.
none
Answer»
C. Labour
44.
Cost of leather used in shoe making is the example of direct………….
A.
Overheads
B.
Labour
C.
Material
D.
none
Answer»
C. Material
45.
The ………………include all types of expenses other than direct materials and direct labour
which are incurred for a particular product or job.
A.
Direct labour
B.
Direct expenses
C.
Direct material
D.
none
Answer»
B. Direct expenses
46.
Direct expenses are also known as ……………..expenses.
A.
Indirect
B.
Productive
C.
Chargeable
D.
none
Answer»
C. Chargeable
47.
The expenses which can be identified with and allocated to cost centers and cost units are
termed as……………..
A.
Direct material
B.
Direct labour
C.
Direct expenses
D.
none
Answer»
C. Direct expenses
48.
Fees paid to Architect is the example of…………...
A.
Direct labour
B.
Direct expenses
C.
Direct material
D.
none
Answer»
B. Direct expenses
49.
The total of direct material, direct labour and direct expenses is known as………..
A.
Works Cost
B.
Prime Cost
C.
Cost of Production
D.
none
Answer»
B. Prime Cost
50.
Direct…………..enter the product and form a part of finished product.
A.
Expenses
B.
Labour
C.
Materials
D.
none
Answer»
C. Materials
Chapter: Elements of Cost and Cost Sheet
51.
Material, Labour and Expenses are the three important…………. of cost.
A.
Methods
B.
Elements
C.
Techniques
D.
Process
Answer»
B. Elements
52.
……………..cost is the cost of commodities supplied to an undertaking.
A.
Material
B.
Labour
C.
Expenses
D.
Cost
Answer»
B. Labour
53.
Direct Labour Cost is also known as…………
A.
Indirect Labour
B.
Indirect Wages
C.
Direct Wages
D.
Debtors
Answer»
C. Direct Wages
54.
The expenses which cannot be directly identified with a particular unit or cost centre is
known as …………………...
A.
Indirect Labour
B.
Indirect material
C.
Indirect expenses
D.
Direct expenses
Answer»
C. Indirect expenses
55.
……………………..expenses are also called as chargeable expenses.
A.
Partly direct and partly indirect
B.
Indirect
C.
Direct
D.
None of the above
Answer»
C. Direct
56.
The aggregate of indirect material, indirect labour and indirect expenses in termed
as…………….
A.
Material Cost
B.
Overheads
C.
Labour Cost
D.
Closing Stock
Answer»
B. Overheads
57.
The overhead cost incurred from the stage of procurement of raw material till the stage of
production of finished goods is known as…… .
A.
Office overheads
B.
Factory overheads
C.
Selling overheads
D.
PRIME COST
Answer»
B. Factory overheads
58.
Office overheads are also known as …………….overheads.
A.
Factory
B.
Selling
C.
Administrative
D.
Work Cost
Answer»
C. Administrative
59.
The cost of activities relating to create and stimulate demand for company’s products and to
secure orders is known as……….overheads.
A.
Administrative
B.
Factory
C.
Selling and Distribution
D.
Office
Answer»
C. Selling and Distribution
60.
Non-cost items are those which are …………….. from the cost.
A.
Excluded
B.
Included
C.
Partly included
D.
none of the above
Answer»
A. Excluded
61.
Classification of cost into factory cost, administrative cost, selling & distribution cost and
research and development cost is done on the basis of…………...
A.
Elements
B.
Functions
C.
Time
D.
Strategy
Answer»
B. Functions
62.
The cost that remains unchanged in spite of change in volume of production is known
as………….
A.
Fixed cost
B.
Variable cost
C.
Semi-variable cost
D.
Direct Cost
Answer»
A. Fixed cost
63.
……………….cost is partly variable and partly fixed.
A.
Fixed cost
B.
Semi-variable cost
C.
Variable cost
D.
Semi Fixed Cost
Answer»
B. Semi-variable cost
64.
………………is a statement showing cost of production of a particular product.
A.
Tender
B.
Quotation
C.
Cost sheet
D.
Statements
Answer»
C. Cost sheet
65.
The total of works cost and administrative overheads is known as …
A.
Prime cost
B.
Cost of Production
C.
Works cost
D.
Direct Cost
Answer»
B. Cost of Production
66.
…………………is the total of prime cost and factory overheads.
A.
Cost of production
B.
Works cost
C.
Cost of material consumed
D.
Selling and Distributional Expenses
Answer»
B. Works cost
67.
Consumables are treated as……………overheads in cost sheet.
A.
Factory
B.
Office
C.
Selling and Distribution
D.
Cost of production
Answer»
A. Factory
68.
If the total cost of a product is Rs.25, 000/- and the sales figure is 47,000/-, then the product
is in…………by Rs.22, 000/-.
A.
Loss
B.
Profit
C.
Neither profit nor loss
D.
Commission
Answer»
B. Profit
69.
In cost sheet the expenses on discount allowed are considered under………………overheads.
A.
Factory
B.
Office
C.
Selling and Distribution
D.
none
Answer»
C. Selling and Distribution
70.
………………cost is predetermined cost for each element of cost.
A.
Marginal
B.
Historical
C.
Standard
D.
none
Answer»
C. Standard
71.
Which of the following is not used as a base for apportionment of administration
overheads?
A.
Direct wages
B.
Works cost
C.
Conversion cost
D.
Sales value
Answer»
A. Direct wages
72.
In account ting for labour cost:
A.
Direct labour cost and indirect labour cost are charged to prime cost
B.
Direct labour cost and indirect labour cost are charged to overheads
C.
Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads
D.
All of the above
Answer»
C. Direct labour cost is charged to prime cost and indirect labour cost is charged to overheads
73.
Depreciation is a ………….. Expense
A.
Fixed
B.
Variable
C.
Semi – variable
D.
none
Answer»
A. Fixed
74.
………………….. Cost per unit does not change with change in activity level
A.
Overhead
B.
Variable
C.
Fixed
D.
none
Answer»
B. Variable
75.
Telephone expense is a …………………. Expense
A.
Fixed
B.
Variable
C.
Semi – variable
D.
none
Answer»
C. Semi – variable
76.
Cost accounting is the art, science and …………… cost of accountant
A.
Profession
B.
Management
C.
Administration
D.
none
Answer»
A. Profession
77.
………………. May be a location, a person, or an item of equipment or group of there
A.
Cost centre
B.
Cost unit
C.
Profit center
D.
none
Answer»
B. Cost unit
78.
…………………. Is defined on the guidance and regulation by executive action of cost operating
and under taking
A.
Cost reduction
B.
Cost control
C.
Cost estimation
D.
none
Answer»
A. Cost reduction
79.
………. is the cost incurred in the part has no effect on future decision making
A.
Sunk cost
B.
Historical cost
C.
Imputed cost
D.
none
Answer»
A. Sunk cost
80.
Machine hour rate in the cost of running a machine
A.
Per hour
B.
Per day
C.
Per work
D.
none
Answer»
B. Per day
81.
Direct expense are also called ……………………. Expenses.
A.
Variable
B.
Chargeable
C.
Fixed
D.
none
Answer»
B. Chargeable
82.
Cost of production is also called ………………..if there is no selling and distribution expense
A.
Cost of sales
B.
Office cost
C.
Factory cost
D.
none
Answer»
B. Office cost
83.
If cost of sales exceeds sales it will be
A.
Profit
B.
Loss
C.
Gain
D.
none
Answer»
B. Loss
84.
Statement prepared to show the different elements of cost
A.
Time sheet
B.
Cost sheet
C.
Work sheet
D.
none
Answer»
B. Cost sheet
85.
Variable cost increases
A.
As in the sales goes up
B.
As the production goes up
C.
As the fixed expenses goes up
D.
none
Answer»
B. As the production goes up
86.
On the basis of ……………… cost can be classified into fixed and variable.
A.
Behavior
B.
Element
C.
Function
D.
none
Answer»
A. Behavior
87.
Direct expense are also called ……………… expenses
A.
Semi-variable
B.
Chargeable
C.
Fixed
D.
none
Answer»
B. Chargeable
88.
Operating costing is applicable to
A.
Transport
B.
Hospitals
C.
Electricity
D.
none
Answer»
A. Transport
89.
Rent on own building is a ………………..
A.
Sunk cost
B.
Imputed cost
C.
Opportunity cost
D.
none
Answer»
B. Imputed cost
90.
When material prices fluctuate widely the method of pricing that gives a best result in
A.
Simple average
B.
Weighted average
C.
FIFO
D.
none
Answer»
B. Weighted average
91.
……….. is the first and most important element of cost.
A.
Expenses
B.
Labour
C.
Material
D.
none
Answer»
C. Material
92.
The term………..refers to all commodities that are consumed in the process of production,
assembly and fabricated parts
A.
Labour
B.
Material
C.
Expenses
D.
none
Answer»
B. Material
93.
The term……………..is defined as a system that ensures the provision of the required quantity
of material of the required quality at the required time with the minimum amount of capital.
A.
Material Control
B.
Labour Control
C.
Marketing Control
D.
none
Answer»
A. Material Control
94.
………………..purchase procedure should be installed to ensure that the purchases are made
at favourable prices.
A.
Marginal
B.
Standard
C.
Joint
D.
none
Answer»
B. Standard
95.
The term …………….may be defined as the systematic control over the procurement of
materials.
A.
Material control
B.
Purchase control
C.
Sales control
D.
none
Answer»
B. Purchase control
96.
The organisation of the purchase department depends on the…………..of the organisation
and its likely quantum of purchase.
A.
Size
B.
Number of managers
C.
Number of workers
D.
none
Answer»
A. Size
97.
……………………is the head of the purchase department.
A.
Sales Manager
B.
Purchase Manager
C.
Marketing Manager
D.
none
Answer»
B. Purchase Manager
98.
Purchase…………..is to be prepared to know what to buy, what should be the quantity,
quality and price.
A.
requisition
B.
order
C.
budget
D.
none
Answer»
C. budget
99.
One of the objective of …………….is to avoid under and overstocking of material.
A.
Scientific Purchasing
B.
Purchasing
C.
Sales control
D.
none
Answer»
A. Scientific Purchasing
100.
The…………….must maintain a proper classified record of all purchases, uses and stock of
materials.
Question and answers in
Cost and Works Accounting 1,
Cost and Works Accounting 1
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Cost and Works Accounting 1
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Cost and Works Accounting 1,
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