Teaching Accountancy Cost Accounting Question Bank

done MCQ - Cost Accounting Total Questions - 98

• question_answer1)
  What is the effect of increase in fixed cost?
  A)
   Reduces profit volume ratio done clear
  B)
   Raises breakeven point done clear
  C)
   Increases margin of safety done clear
  D)
   Reduces contribution done clear
  View Solution play_arrow

• question_answer2)
  Which of the following is correct at breakeven point?
  A)
   Contribution = Fixed assets done clear
  B)
   Sales Revenue = Total Cost - Variable Cost done clear
  C)
   Profit = Fixed Cost + Variable Cost done clear
  D)
   Sales Revenue = Variable Cost done clear
  View Solution play_arrow

• question_answer3)

  Why is profit volume ratio used?

  I. To compute the variable cost for any volume of sales.

  II. To determine breakeven point and the level of output required to earn a desired profit.

  III. To decide most profitable sales mix.

  Select the correct answer using the codes given below

  A)
                                   I and II                                     done clear
  B)
   II and III done clear
  C)
   I and III                                    done clear
  D)
   All of these done clear
  View Solution play_arrow

• question_answer4)
  The breakeven point in units is calculated using
  A)
   Fixed expenses and the contribution margin ratio done clear
  B)
   Variable expenses and the contribution margin ratio done clear
  C)
   Fixed expenses and the unit contribution margin done clear
  D)
   Variable expenses and the unit contribution margin done clear
  View Solution play_arrow

• question_answer5)
  One of the basic differences between marginal costing and absorption costing is regarding the treatment of    
  A)
   Direct material                           done clear
  B)
   variable overheads   done clear
  C)
   Fixed overheads                         done clear
  D)
   prime cost     done clear
  View Solution play_arrow

• question_answer6)
       When is a business unit known to be a profit centre?
  A)
   If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control done clear
  B)
   If its management is evaluated not only on revenues and expenses, but also on asset investment done clear
  C)
   If its management is compensated based on the level of profitability done clear
  D)
   If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply done clear
  View Solution play_arrow

• question_answer7)
  What is the most useful information derived from a break even chart?
  A)
   Relationship between revenue and costs at various levels of output    done clear
  B)
   Volume or output level at which  ;the enterprises break even done clear
  C)
   Amount of sales revenue needed to cover enterprise variable costs done clear
  D)
   Amount of sales revenue needed to cover enterprise fixed costs done clear
  View Solution play_arrow

• question_answer8)
  What is the basic difference between a static budget and a flexible budget?
  A)
   A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range done clear
  B)
   A static budget is for an entire production, but a flexible budget is applicable only to a single department done clear
  C)
   Flexible budget allow management latitude in meeting goals, whereas a static budget is based on a fixed standard done clear
  D)
   A flexible budget considers only variable costs, but a static budget considers all costs done clear
  View Solution play_arrow

• question_answer9)
  The margin of safety may be defined as
  A)
   The point at which breakeven point sales are achieved     done clear
  B)
   The excess of planned sales over the current actual sales done clear
  C)
   The extent to which sales revenue exceeds fixed costs done clear
  D)
   The difference between planned sales and breakeven point sales done clear
  View Solution play_arrow

• question_answer10)
  Which one of the following cost would not be termed as product costs?
  A)
   Administrative salaries                            done clear
  B)
   Direct labour done clear
  C)
   Indirect material done clear
  D)
   Plant supervisor’s salary done clear
  View Solution play_arrow

• question_answer11)
  In which costing method, the fixed factory overhead are added to inventory valuation?
  A)
   Marginal costing                         done clear
  B)
   Absorption costing done clear
  C)
   Both [a] and [b]                         done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer12)
  Match the following

  List I		List II
  A.	Overhead efficiency variance	1.	Power failure
  B.	Overhead volume variance	2.	Appointing low grade employees
  C.	Labour idle time variance	3.	Poor working condition
  D.	Labour efficiency variance	4.	Working days being more or less than budgeted

  Codes
  A)
                                   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]3    done clear
  B)
   A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done clear
  C)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  D)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  View Solution play_arrow

• question_answer13)
  Which budget is prepared first of all?
  A)
   Cash budget done clear
  B)
   Master budget done clear
  C)
   Budget for the key factor done clear
  D)
   Flexible budget done clear
  View Solution play_arrow

• question_answer14)
  An increase in fixed costs will result, in which of the following?
  A)
   A decrease in the contribution-sales ratio done clear
  B)
   A decrease in the contribution per point done clear
  C)
   An increase in the breakeven point sales level done clear
  D)
   An increase in the margin of safety done clear
  View Solution play_arrow

• question_answer15)
  Under the marginal costing concept/unit product cost would most likely be increased by
  A)
   a decrease in the number of units produced done clear
  B)
   an increase in the number of units produced done clear
  C)
   an increase in the commission paid to salesman for each units sold done clear
  D)
   a decrease in the commission paid to salesman for each units sold done clear
  View Solution play_arrow

• question_answer16)
  Breakeven point is
  A)
   Where total revenue equals total costs done clear
  B)
   Where total contribution equals variable costs done clear
  C)
   Where total revenue equals fixed costs done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer17)
  Prime cost plus factory overhead cost is
  A)
   conversion cost                          done clear
  B)
   production cost done clear
  C)
   total cost                                  done clear
  D)
   cost of goods sold done clear
  View Solution play_arrow

• question_answer18)
  Match the following

  List I		List II
  A.	Labour cost variance	1.	Actual hours paid (Standard rate - Actual rate)
  B.	Labour rate variance	2.	Standard cost - Actual cost
  C.	Efficiency variance	3.	Idle hours \[\times \] standard rate per hour
  D.	Idle time variance	4.	Standard rate (Standard hours - Actual hours worked)

  Codes
  A)
                                   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1    done clear
  B)
   A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done clear
  C)
   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 done clear
  D)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  View Solution play_arrow

• question_answer19)
  Product cost is normally
  A)
   Equal in both absorption and marginal costing done clear
  B)
   Higher in marginal costing than absorption costing done clear
  C)
   Higher in absorption costing than marginal costing done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer20)

  Which of the following are advantages of marginal costing?

  I. Pricing decision

  II. True profit

  III. Difficult to classify

  IV. Ignores time value

  V. Break even analysis

  VI. Contribution is not final

  VII. Control over expenditure

  Select the correct answer using the codes given below

  A)
   I, II, V and VII                          done clear
  B)
   I, III, V and VII done clear
  C)
   III, IV, VI and VII                      done clear
  D)
   I, II, VI and VII done clear
  View Solution play_arrow

• question_answer21)
  Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred?
  A)
   Perpetual inventory                    done clear
  B)
   LIFO done clear
  C)
   FIFO                                        done clear
  D)
   Average cost done clear
  View Solution play_arrow

• question_answer22)
  Match the following

  List I		List II
  A.	Variable costing	1.	Absorption costing
  B.	Valuation of stock is higher	2.	Fixed costs excluded from inventory valuation
  C.	Marginal and differential costs are same	3.	Marginal costing
  D.	Marginal costing	4.	No change in fixed cost

  Codes
  A)
           A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2    done clear
  B)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  C)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  D)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer23)
  Match the following

  List I		List II
  A.	Classification of costs into fixed and variable costs	1.	Contribution
  B.	Difference between sales and variable costs	2.	P/V ratio
  C.	Difference between sales at breakeven point and the total sales	3.	Marginal costing
  D.	Relative profitability	4.	Margin of safety

  Codes
  A)
           A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2    done clear
  B)
   A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 done clear
  C)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  D)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer24)
  Match the following

  List I		List II
  A.	Excess of actual sales over the break even sales volume	1.	Contribution
  B.	Sum of fixed cost and profit	2.	Cost volume profit analysis
  C.	Break even chart	3.	Unaffected by change in output
  D.	Breakeven point	4.	Margin of safety

  Codes
  A)
                                   A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3    done clear
  B)
   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 done clear
  C)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  D)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  View Solution play_arrow

• question_answer25)
  Under marginal costing, only ......costs are charged to products.
  A)
   Fixed                                        done clear
  B)
   variable done clear
  C)
   Both [a] and [b]                         done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer26)
  Which of the following pairs is/are correctly matched?
  A)
   Difference between sales and total cost is profit - Absorption costing done clear
  B)
   Fixed costs recovered from contribution - Standard costing done clear
  C)
   Both [a] and [b] done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer27)
  Match the following

  List I		List II
  A.	Absorption costing	1.	.....is a logical extension of marginal costing
  B.	Fixed expenses	2.	.....is a valuable adjust to standard costing and budgetary costing
  C.	Marginal costing	3.	Contribution = ..+ Profit
  D.	Break even analysis	4.	..is not very helpful in taking managerial decisions

  Codes
  A)
           A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1    done clear
  B)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  C)
   A\[\to \]3, B\[\to \]2, C\[\to \]4, D\[\to \]1 done clear
  D)
   A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 done clear
  View Solution play_arrow

• question_answer28)
  Match the following

  List I		List II
  A.	Marginal cost	1.	..= Contribution\[\div \]Sales
  B.	P/V ratio	2.	Contribution = Selling price -....
  C.	Profit	3.	..... = Sales (1 - P/V Ratio)
  D.	Variable costs	4.	Margin of safety =..... \[\div \] P/V Ratio

  Codes
  A)
                                   A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1   done clear
  B)
   A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 done clear
  C)
   A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 done clear
  D)
   A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 done clear
  View Solution play_arrow

• question_answer29)
  Which of the following is not correctly matched?
  A)
   Unit fixed cost - Decreases with rise is output done clear
  B)
   Labour and overhead - Cost of conversion done clear
  C)
   Total variable cost - Remains constant per units done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer30)
  Which of the following pairs is/are correctly matched?
  A)
   In this, stocks are valued at cost - Financial accounting done clear
  B)
   It provides sufficient data for fixation of selling prices - Cost accounting done clear
  C)
   Both [a] and [b] done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer31)
  Which of the following statements is not correct?
  A)
   P/V ratio can be improved by reducing fixed cost done clear
  B)
   Contribution is also known as gross margin done clear
  C)
   P/V ratio can be improved by increasing the selling price done clear
  D)
   Margin of safety can be improved by reducing fixed cost done clear
  View Solution play_arrow

• question_answer32)
  In the context of standard costing basic standard is established for
  A)
   Short period                              done clear
  B)
   current period done clear
  C)
   Indefinite period                         done clear
  D)
   pre-defined period done clear
  View Solution play_arrow

• question_answer33)

  Consider the following statements

  I. Marginal costing and absorption costing are the same.

  II. For decision-making, absorption costing is more suitable than marginal costing.

  III. Cost volume profit relationship also denote breakeven point.

  VI. Marginal costing is based on the distinction between fixed and variable costs.

  Which of the statements given above are correct?

  A)
   I and II                                     done clear
  B)
   II and III done clear
  C)
   III and IV                                  done clear
  D)
   IV and II done clear
  View Solution play_arrow

• question_answer34)
  The main purpose of cost accounting is to
  A)
   Assist management in decision-making done clear
  B)
   maximise profits and minimise losses done clear
  C)
   Comply norms issued by the Government of India from time to time done clear
  D)
   Prepare cost accounts in line with the accounting standards done clear
  View Solution play_arrow

• question_answer35)
  A variable such as activity that causes cost over a given time is
  A)
   Cost driver                                done clear
  B)
   cost behaviour done clear
  C)
   Cost centre                                done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer36)
  Cost accounting mainly helps the management in
  A)
   Earning profit done clear
  B)
   Providing information to management done clear
  C)
   Fixing prices of the products done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer37)
  Cost accounting provides all of the following information except
  A)
   Product cost                              done clear
  B)
   cost of goods sold done clear
  C)
   Inventory values                        done clear
  D)
   cash forecasts done clear
  View Solution play_arrow

• question_answer38)
  The total of all direct expense is known as ...........cost.
  A)
   Prime cost                                 done clear
  B)
   factory cost done clear
  C)
   Selling cost                                done clear
  D)
   cost of products done clear
  View Solution play_arrow

• question_answer39)
  Cost accounting emerged mainly on account of
  A)
   Statutory requirements done clear
  B)
   Competition in the market done clear
  C)
   Limitation of financial accounting done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer40)
  Marginal costing in concerned with
  A)
   Fixed costs                                done clear
  B)
   variable cost done clear
  C)
   Semi-fixed cost                          done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer41)
  Aggregate of direct cost is known as........... .
  A)
   Direct material cost                    done clear
  B)
   Direct labour cost done clear
  C)
   Prime cost                                 done clear
  D)
   Factory cost done clear
  View Solution play_arrow

• question_answer42)
  Aggregate of prime cost and factory overhead is
  A)
   Work on cost                             done clear
  B)
   work cost done clear
  C)
   Cost of production                     done clear
  D)
   prime cost done clear
  View Solution play_arrow

• question_answer43)
  Salary paid to factory manager is an item of
  A)
   prime cost                                 done clear
  B)
   factory overhead done clear
  C)
   Selling overhead                        done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer44)
  ...........is denned as the guidance and regulation by executive action of cost of operating on undertaking.
  A)
   Cost reduction                           done clear
  B)
   Cost control done clear
  C)
   Cost estimation                          done clear
  D)
   Cost centre done clear
  View Solution play_arrow

• question_answer45)
  Re-order Level = Maximum Consumption\[\times \]..........
  A)
   Minimum Re order Period done clear
  B)
   Maximum Re-order Period done clear
  C)
   Minimum Consumption done clear
  D)
   Maximum Consumption done clear
  View Solution play_arrow

• question_answer46)
  The quality of material to be ordered at one time
  A)
   EOQ                                        done clear
  B)
   EBQ done clear
  C)
   BOQ done clear
  D)
   EOB done clear
  View Solution play_arrow

• question_answer47)
  Prime cost can be also called
  A)
   Indirect cost                              done clear
  B)
   direct cost done clear
  C)
   Fixed cost                                 done clear
  D)
   opportunity cost done clear
  View Solution play_arrow

• question_answer48)
  ...........in the aggregate of indirect material, indirect labour and indirect expense.
  A)
   Prime cost                                 done clear
  B)
   Factory cost done clear
  C)
   Overhead                                  done clear
  D)
   Labour cost done clear
  View Solution play_arrow

• question_answer49)
  The value of benefit sacrificed in favour of an alternative course of action as known as
  A)
   Variable cost                             done clear
  B)
   fixed cost done clear
  C)
   Opportunity cost                        done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer50)
  Carrying costs are otherwise called
  A)
   Ordering costs                            done clear
  B)
   holding costs done clear
  C)
   Out of stock cost                        done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer51)
  Minimum Level + Consumption during the lead time is called........
  A)
   Re-order Level                           done clear
  B)
   EOQ done clear
  C)
   Maximum Stock Level                done clear
  D)
   Maximum Level done clear
  View Solution play_arrow

• question_answer52)
  In deciding the EOQ the cost of inventory should be
  A)
   Minimum                                  done clear
  B)
   optimum done clear
  C)
   Maximum                                 done clear
  D)
   All of these done clear
  View Solution play_arrow

• question_answer53)
  EOQ is calculated as...........
  A)
   \[\frac{2ca}{l}\]                        done clear
  B)
   \[\sqrt{\frac{2\,pq}{l}}\] done clear
  C)
   \[\sqrt{\frac{ca}{l}}\]                done clear
  D)
   \[\sqrt{\frac{2\,Pc}{l}}\] done clear
  View Solution play_arrow

• question_answer54)
  Which of these is not an objective of cost accounting?
  A)
   Ascertainment of Cost done clear
  B)
   Determination of Selling Price done clear
  C)
   Cost Control and Cost reduction done clear
  D)
   Assisting Shareholders in decision making done clear
  View Solution play_arrow

• question_answer55)
  Element of cost of a product are:
  A)
   Material only                             done clear
  B)
   Labour only done clear
  C)
   Expenses only done clear
  D)
   Material, Labour and expenses done clear
  View Solution play_arrow

• question_answer56)
  Describe the method of costing to be applied in case of Nursing Home.
  A)
   Operating costing                       done clear
  B)
   Process costing done clear
  C)
   Contract costing                         done clear
  D)
   Job costing done clear
  View Solution play_arrow

• question_answer57)

  Calculate the prime cost from the following information

  Direct material purchased: ` 100000

  Direct material consumed: ` 90000

  Direct labor: ` 600000

  Direct expenses: ` 200000

  Manufacturing overheads ` 30000

  A)
   ` 180000                                  done clear
  B)
   ` 200000 done clear
  C)
   ` 10000                                    done clear
  D)
   ` 210000 done clear
  View Solution play_arrow

• question_answer58)
  In process costing, if an abnormal loss arises, the process account is generally
  A)
   Debited with the scrap value of the abnormal loss units done clear
  B)
   Debited with the full production cost of the abnormal loss units done clear
  C)
   Credited with the scrap value of the abnormal loss units done clear
  D)
   Credited with the full production cost of the abnormal loss units done clear
  View Solution play_arrow

• question_answer59)

  Which of the following statement(s) is/are correct?

  I. A materials requisition note is used to record the issue of direct material to a specific job.

  II. A typical job cost will contain actual costs for material, labour and production overheads, and non-production overheads are often added as a percentage of total production cost.

  III. The job costing method can be applied in costing batches.

  A)
   I only done clear
  B)
   I and II only done clear
  C)
   I and III only done clear
  D)
   II and III only done clear
  View Solution play_arrow

• question_answer60)
  Information concerning A Ltd's single product is as follows Selling price ` 6 per unit, Variable production cost ` 1.20 per unit, Variable selling cost ` 0.40 per unit, Fixed production cost ` 4 per unit, Fixed selling cost ` 0.80 per unit. Budgeted production and sales for the year are ` 10000 units. What is the company’s breakeven point?
  A)
                                   8000 units                                 done clear
  B)
   8333 units done clear
  C)
   10000 units                               done clear
  D)
   10909 units done clear
  View Solution play_arrow

• question_answer61)
  Overhead consists of all the following except
  A)
   Indirect materials                       done clear
  B)
   Direct-labour done clear
  C)
   Store-keepers                             done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer62)
  Prime cost comprises the following combination of costs
  A)
   Direct materials and factory overhead done clear
  B)
   Direct labour and factory overhead done clear
  C)
   Direct material, direct labour and direct expense done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer63)
  The term cost refers to
  A)
   An asset that has given benefit and is now expired done clear
  B)
   The price of product sold or services rendered done clear
  C)
   The value of sacrifice made to require goods or service. done clear
  D)
   The present value of future benefit done clear
  View Solution play_arrow

• question_answer64)
  According to which of the following methods of material pricing are close to current economic values
  A)
   LIFO                                        done clear
  B)
   FIFO done clear
  C)
   HIFO                                       done clear
  D)
   All of these done clear
  View Solution play_arrow

• question_answer65)
  Standard costing is
  A)
   Technique                                 done clear
  B)
   method done clear
  C)
   Process                                     done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer66)
  Store keeper should initiate a purchase requisition when stock reaches
  A)
   Minimum level                           done clear
  B)
   maximum level done clear
  C)
   Re-order level                            done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer67)
  The cost of........... is not included in the cost of production
  A)
   Normal loss                               done clear
  B)
   abnormal loss done clear
  C)
   Scrap                                       done clear
  D)
   abnormal profit done clear
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• question_answer68)
  Direct cost clearly be........with a product.
  A)
   Identified                                  done clear
  B)
   apportioned done clear
  C)
   Allocated                                  done clear
  D)
   located done clear
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• question_answer69)
  ............is a unit of quantity in term of which cost is ascertained.
  A)
   Cost centre                                done clear
  B)
   Cost unit done clear
  C)
   Profit centre                              done clear
  D)
   Price centre done clear
  View Solution play_arrow

• question_answer70)
  If the minimum stock level is 3000 units and re-order quantity are 2000 units. What is the average stock level?
  A)
   5000                                        done clear
  B)
   4000 done clear
  C)
   3000                                        done clear
  D)
   6000 done clear
  View Solution play_arrow

• question_answer71)
  In which of the following method of wage payment, wages on time basis are not guaranteed?
  A)
   Halsey plan done clear
  B)
   Rowan plan done clear
  C)
   Taylors differential piece rate system done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer72)
  Which of the following method of wage payment is most suitable where quality and accuracy of work of primary importance?
  A)
   Piece rate system                       done clear
  B)
   Time rate system done clear
  C)
   Halsey plan                               done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer73)
  .........method of wage payment provides for high rate of efficient workers.
  A)
   Taylors differential piece rate system done clear
  B)
   Gant’s task piece rate system done clear
  C)
   Time rate system done clear
  D)
   Piece rate system done clear
  View Solution play_arrow

• question_answer74)
  Normally overtime payment is made at
  A)
   three times                                done clear
  B)
   two times done clear
  C)
   four times                                 done clear
  D)
   five times done clear
  View Solution play_arrow

• question_answer75)
  Which of the following is not premium bonus plan?
  A)
   Halsey plan                               done clear
  B)
   Rowan plan done clear
  C)
   Mericks plan                              done clear
  D)
   None of these done clear
  View Solution play_arrow

• question_answer76)
  Time lost in the course of normal activity is known as
  A)
   Idle time                                   done clear
  B)
   abnormal idle time done clear
  C)
   Over time                                 done clear
  D)
   Normal idle time done clear
  View Solution play_arrow

• question_answer77)
  The main objective of cost accounting is to provide information to the management for
  A)
   Planning                                   done clear
  B)
   decision-making done clear
  C)
   Policy-making                            done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer78)
  Total costs of direct material, labour and expenses are included in
  A)
   Distribution cost                         done clear
  B)
   prime cost done clear
  C)
   Selling cost                                done clear
  D)
   development cost done clear
  View Solution play_arrow

• question_answer79)
  The ascertainment of costs after they had been incurred is known as
  A)
   Differential costing done clear
  B)
   Replacement costing done clear
  C)
   Historical costing done clear
  D)
   predetermined costing done clear
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• question_answer80)
  ............... is a technique of cost control.
  A)
   Marginal costing done clear
  B)
   Standard costing done clear
  C)
   Job costing done clear
  D)
   Contract costing done clear
  View Solution play_arrow

• question_answer81)
  A cost, in which payment is made to a factor of production is referred to as
  A)
   Opportunity cost                        done clear
  B)
   imputed cost done clear
  C)
   Absolute cost                             done clear
  D)
   out of pocket cost done clear
  View Solution play_arrow

• question_answer82)
  A cycle manufacturing company will generally use the..................method of costing.
  A)
   Job costing                                done clear
  B)
   multiple costing done clear
  C)
   Unit costing                               done clear
  D)
   process costing done clear
  View Solution play_arrow

• question_answer83)
  The process of distributing an item of cost over several cost centres is known as
  A)
   Cost absorption                         done clear
  B)
   cost apportionment done clear
  C)
   Cost allocation                          done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer84)
  ...............method of costing will be suitable for oil refineries.
  A)
   Operation costing                       done clear
  B)
   Process costing done clear
  C)
   Job costing                                done clear
  D)
   Batch costing done clear
  View Solution play_arrow

• question_answer85)
  Overhead costs of operating a machine may be absorbed by using
  A)
   Rate per second of operating the machine done clear
  B)
   Rate per minute of operating the machine done clear
  C)
   Rate per hour of operating the machine done clear
  D)
   Either [a] or [b] done clear
  View Solution play_arrow

• question_answer86)
                                                  Bin card is also known as
  A)
   Stores ledger                              done clear
  B)
   stock card done clear
  C)
   Material bill                               done clear
  D)
   none of the above done clear
  View Solution play_arrow

• question_answer87)
  In ............ method, the price of the oldest available stock is taken as the issue price.
  A)
   Weighted average                       done clear
  B)
   LIFO done clear
  C)
   FIFO                                        done clear
  D)
   HIFO done clear
  View Solution play_arrow

• question_answer88)
  The quantity of material which is ordered at the time of placing an order is referred to as
  A)
   ABC quantity                                        done clear
  B)
   Minimum quantity   done clear
  C)
   Maximum quantity                    done clear
  D)
   economic order quantity done clear
  View Solution play_arrow

• question_answer89)
  ...............are incurred every time an order is placed and include cost of placing an order, transportation cost, cost of inspecting goods etc.
  A)
   Storage costs                             done clear
  B)
   Ordering costs done clear
  C)
   Either [a] or [b]                          done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer90)
  ............are incurred on the maintenance of material in stores and comprise of costs related to handling, obsolescence, pilferage etc.
  A)
   Carrying costs                            done clear
  B)
   Ordering costs done clear
  C)
   Either [a] or [b]                          done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer91)
  In case of inter-departmental issue of material ......is issued.
  A)
   credit note                                             done clear
  B)
   Debit note done clear
  C)
   Material transfer note                  done clear
  D)
   Stores requisition note done clear
  View Solution play_arrow

• question_answer92)
  ABC analysis is a technique of
  A)
   Cost control                              done clear
  B)
   budgetary control done clear
  C)
   Inventory control                       done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer93)
  A manufacturer uses 7500 units of a material 'Z' per year. The material cost is ` 15 per unit and   carrying cost is 40% per annum of average inventory cost. The cost of placing order is ` 36. Calculate EOQ and number of orders placed per annum.
  A)
   250 units, 30 times                     done clear
  B)
   300 units, 25 times done clear
  C)
   500 units, 15 times                     done clear
  D)
   150 units, 50 times done clear
  View Solution play_arrow

• question_answer94)
  Method to measure labour turnover is
  A)
   Separation method                     done clear
  B)
   Replacement method done clear
  C)
   Flux method done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer95)
  The cost of abnormal idle time is transferred to
  A)
   Costing manufacturing A/c done clear
  B)
   Costing profit and loss A/c done clear
  C)
   Costing trading A/c done clear
  D)
   None of the above done clear
  View Solution play_arrow

• question_answer96)
  Which of the following item(s) is/are included in overheads?
  A)
   Depreciation on office furniture done clear
  B)
   Rent of office building done clear
  C)
   Electricity charges of office done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer97)
  Administrative overheads include
  A)
   audit and legal fees . done clear
  B)
   Office rent, rates and taxes done clear
  C)
   Salaries of administrative staff done clear
  D)
   All of the above done clear
  View Solution play_arrow

• question_answer98)
  Salary paid to supervisor is an example of
  A)
   Selling overhead done clear
  B)
   Production overhead done clear
  C)
   Manufacturing overhead done clear
  D)
   Administrative overhead done clear
  View Solution play_arrow