McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
…………………..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 | |
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