McqMate
Chapters
| 1. |
Material, Labour and Expenses are the three important…………. of cost. |
| A. | Methods |
| B. | Elements |
| C. | Techniques |
| D. | Process |
| Answer» B. Elements | |
| 2. |
……………..cost is the cost of commodities supplied to an undertaking. |
| A. | Material |
| B. | Labour |
| C. | Expenses |
| D. | Cost |
| Answer» B. Labour | |
| 3. |
Direct Labour Cost is also known as………… |
| A. | Indirect Labour |
| B. | Indirect Wages |
| C. | Direct Wages |
| D. | Debtors |
| Answer» C. Direct Wages | |
| 4. |
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 | |
| 5. |
……………………..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 | |
| 6. |
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 | |
| 7. |
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 | |
| 8. |
Office overheads are also known as …………….overheads. |
| A. | Factory |
| B. | Selling |
| C. | Administrative |
| D. | Work Cost |
| Answer» C. Administrative | |
| 9. |
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 | |
| 10. |
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 | |
| 11. |
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 | |
| 12. |
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 | |
| 13. |
……………….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 | |
| 14. |
………………is a statement showing cost of production of a particular product. |
| A. | Tender |
| B. | Quotation |
| C. | Cost sheet |
| D. | Statements |
| Answer» C. Cost sheet | |
| 15. |
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 | |
| 16. |
…………………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 | |
| 17. |
Consumables are treated as……………overheads in cost sheet. |
| A. | Factory |
| B. | Office |
| C. | Selling and Distribution |
| D. | Cost of production |
| Answer» A. Factory | |
| 18. |
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 | |
| 19. |
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 | |
| 20. |
………………cost is predetermined cost for each element of cost. |
| A. | Marginal |
| B. | Historical |
| C. | Standard |
| D. | none |
| Answer» C. Standard | |
| 21. |
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 | |
| 22. |
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 | |
| 23. |
Depreciation is a ………….. Expense |
| A. | Fixed |
| B. | Variable |
| C. | Semi – variable |
| D. | none |
| Answer» A. Fixed | |
| 24. |
………………….. Cost per unit does not change with change in activity level |
| A. | Overhead |
| B. | Variable |
| C. | Fixed |
| D. | none |
| Answer» B. Variable | |
| 25. |
Telephone expense is a …………………. Expense |
| A. | Fixed |
| B. | Variable |
| C. | Semi – variable |
| D. | none |
| Answer» C. Semi – variable | |
| 26. |
Cost accounting is the art, science and …………… cost of accountant |
| A. | Profession |
| B. | Management |
| C. | Administration |
| D. | none |
| Answer» A. Profession | |
| 27. |
………………. 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 | |
| 28. |
…………………. 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 | |
| 29. |
………. 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 | |
| 30. |
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 | |
| 31. |
Direct expense are also called ……………………. Expenses. |
| A. | Variable |
| B. | Chargeable |
| C. | Fixed |
| D. | none |
| Answer» B. Chargeable | |
| 32. |
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 | |
| 33. |
If cost of sales exceeds sales it will be |
| A. | Profit |
| B. | Loss |
| C. | Gain |
| D. | none |
| Answer» B. Loss | |
| 34. |
Statement prepared to show the different elements of cost |
| A. | Time sheet |
| B. | Cost sheet |
| C. | Work sheet |
| D. | none |
| Answer» B. Cost sheet | |
| 35. |
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 | |
| 36. |
On the basis of ……………… cost can be classified into fixed and variable. |
| A. | Behavior |
| B. | Element |
| C. | Function |
| D. | none |
| Answer» A. Behavior | |
| 37. |
Direct expense are also called ……………… expenses |
| A. | Semi-variable |
| B. | Chargeable |
| C. | Fixed |
| D. | none |
| Answer» B. Chargeable | |
| 38. |
Operating costing is applicable to |
| A. | Transport |
| B. | Hospitals |
| C. | Electricity |
| D. | none |
| Answer» A. Transport | |
| 39. |
Rent on own building is a ……………….. |
| A. | Sunk cost |
| B. | Imputed cost |
| C. | Opportunity cost |
| D. | none |
| Answer» B. Imputed cost | |
| 40. |
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 | |
| 41. |
……….. is the first and most important element of cost. |
| A. | Expenses |
| B. | Labour |
| C. | Material |
| D. | none |
| Answer» C. Material | |
| 42. |
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 | |
| 43. |
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 | |
| 44. |
………………..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 | |
| 45. |
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 | |
| 46. |
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 | |
| 47. |
……………………is the head of the purchase department. |
| A. | Sales Manager |
| B. | Purchase Manager |
| C. | Marketing Manager |
| D. | none |
| Answer» B. Purchase Manager | |
| 48. |
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 | |
| 49. |
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 | |
| 50. |
The…………….must maintain a proper classified record of all purchases, uses and stock of materials. |
| A. | Costing officer |
| B. | Purchase manager |
| C. | stores clerk |
| D. | none |
| Answer» B. Purchase manager | |
Done Reading?