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. |
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 Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.