MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Under marginal costing, stocks of finished goods and work-in-process are valued at…………….. costs only |
| A. | variable cost |
| B. | fixed cost |
| C. | marginal cost |
| D. | none of these |
| Answer» D. none of these | |
| 2. |
.......................Under marginal costing, …………… costs are treated as periodcosts and charged to profit and loss account for the period for which they are incured. |
| A. | variable cost |
| B. | fixed cost |
| C. | both of these |
| D. | none of these |
| Answer» C. both of these | |
| 3. |
Which among the following is not a management accounting technique. |
| A. | stard costing |
| B. | project appraisal |
| C. | marginal costing |
| D. | none |
| Answer» E. | |
| 4. |
Defectives are that portion of production which can be.............................at someextra cost of re-operation. |
| A. | sold |
| B. | rectified |
| C. | purchased |
| D. | none of these |
| Answer» C. purchased | |
| 5. |
…………does not form part of production. |
| A. | abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» B. normal waste | |
| 6. |
………………forms part of cost of production. |
| A. | abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 7. |
……………….obviates the necessity for the physical checking of all items of storesat the end of the year and thereby avoids dislocation ofproduction. |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» E. | |
| 8. |
Re-ordering level = ........................................X Maximum re-order period |
| A. | average re-order period |
| B. | maximum usage |
| C. | maximum consumption |
| D. | normal usage |
| Answer» D. normal usage | |
| 9. |
……………….is used primarily for control of spare parts. |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» D. perpetual inventory system | |
| 10. |
………………is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to someof the items rather than on all the items. |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» B. jit inventory system | |
| 11. |
………is a technique of material cost control which leads to low carrying cost as aresult of low investment in inventory |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» C. ved analysis | |
| 12. |
Inventory turnover ratio = Cost of inventory consumed during theperiod ÷ Cost of ....................................................held during the period |
| A. | average inventory |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» B. minimum inventory | |
| 13. |
The principle types of inventories are raw materials and ,…............andfinished goods |
| A. | processed materials |
| B. | goods-in-progress |
| C. | stored goods |
| D. | goods for dispatch |
| Answer» C. stored goods | |
| 14. |
……….represents that quantity of material which is normally ordered when aparticular material reaches reordering level. |
| A. | maximum level |
| B. | re-order level |
| C. | minimum level |
| D. | re-order quantity |
| Answer» E. | |
| 15. |
A bill of material is prepared in case of a................................. job |
| A. | standard job |
| B. | non-standardized job |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 16. |
Bin card is a record of.................. only. |
| A. | cost |
| B. | value |
| C. | quantity |
| D. | expense |
| Answer» D. expense | |
| 17. |
.........................Accounting is not only a positive science but also a normative science because it includes techniques of budgetary controlandstandard costing. |
| A. | financial |
| B. | cost |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 18. |
Fixed cost per unit................................... with increase in output. |
| A. | decreases |
| B. | increases |
| C. | changes |
| D. | sometimes |
| Answer» B. increases | |
| 19. |
Depreciation is… ........................expenditure. |
| A. | fixed |
| B. | variable |
| C. | adjustable |
| D. | semi-variable |
| Answer» E. | |
| 20. |
Variable costs change..................................with change in output. |
| A. | proportionately |
| B. | inversely |
| C. | disproportionately |
| D. | sometimes |
| Answer» B. inversely | |
| 21. |
................ costs are partly fixed and partly variable in relation to output. |
| A. | variable |
| B. | fixed |
| C. | semi-variable |
| D. | both a & b |
| Answer» D. both a & b | |
| 22. |
The total of all direct expenses is known as ................... cost. |
| A. | prime |
| B. | works |
| C. | production |
| D. | both a & b |
| Answer» B. works | |
| 23. |
An item of cost that is direct for one business may be ......................for anotherbusiness. |
| A. | important |
| B. | direct |
| C. | indirect |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 24. |
……………is the maximum possible alternative earning that might have beenearned if the productive capacity is put to some alternativeuse. |
| A. | opportunity |
| B. | incremental revenue |
| C. | alternative revenue |
| D. | none of these |
| Answer» B. incremental revenue | |
| 25. |
………..is the cost which involves payment to outsiders. |
| A. | out of pocket cost |
| B. | imputed cost |
| C. | notional cost |
| D. | none of these |
| Answer» B. imputed cost | |
| 26. |
……is the value of a benefit where no actual cost is incurred. |
| A. | imputed |
| B. | sunk |
| C. | out of pocket |
| D. | none of these |
| Answer» B. sunk | |
| 27. |
……….cost is irrecoverable cost. |
| A. | marginal |
| B. | out of pocket |
| C. | sunk |
| D. | none of these |
| Answer» D. none of these | |
| 28. |
The primary emphasis of.......................... cost is on the planning function ofmanagement. |
| A. | budgeted |
| B. | standard |
| C. | period |
| D. | none of these |
| Answer» B. standard | |
| 29. |
.....................…………is the smallest segment of activity or area orresponsibility for which costs are accumulated. |
| A. | cost object |
| B. | cost centre |
| C. | cost driver |
| D. | none of the above |
| Answer» C. cost driver | |
| 30. |
………is one which can be conveniently identified withand charged to a particular unit of cost. |
| A. | direct cost |
| B. | indirect cost |
| C. | overhead |
| D. | none of these |
| Answer» B. indirect cost | |
| 31. |
Accounting provides information for cost control. |
| A. | financial |
| B. | cost |
| C. | human resource |
| D. | none of these. |
| Answer» C. human resource | |
| 32. |
Variable cost increases with.................. in output. |
| A. | increase |
| B. | decrease |
| C. | increase or decrease |
| D. | none of these. |
| Answer» B. decrease | |
| 33. |
Fixed cost ...................................in the same proportion in which output changes. |
| A. | does not change |
| B. | changes |
| C. | increases |
| D. | none of these. |
| Answer» B. changes | |
| 34. |
Costing and cost accounting are …………... |
| A. | not the same |
| B. | one and the same |
| C. | not related at all |
| D. | none of these. |
| Answer» B. one and the same | |
| 35. |
Sunk costs are.............................for decision-making |
| A. | irrelevant |
| B. | relevant |
| C. | useful |
| D. | none of these. |
| Answer» B. relevant | |
| 36. |
Variable cost per unit ……….…………... |
| A. | remains constant |
| B. | varies |
| C. | decreases |
| D. | increases |
| Answer» B. varies | |
| 37. |
The total variable cost.......................................in total proportion to output. |
| A. | increases |
| B. | does not increase |
| C. | decreases |
| D. | none of these. |
| Answer» B. does not increase | |
| 38. |
The method of costing used in a refinery is… .................. costing. |
| A. | process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 39. |
………costing is used in transport undertakings. |
| A. | process |
| B. | service |
| C. | multiple |
| D. | job |
| Answer» C. multiple | |
| 40. |
Cost accounting provides detailed information about .................................ofvarious products, processes, services and operations. |
| A. | costs |
| B. | income |
| C. | either a or b |
| D. | none of these. |
| Answer» B. income | |
| 41. |
Cost accounting records both monetary and.......................units. |
| A. | physical |
| B. | cost |
| C. | both a & b |
| D. | none of these. |
| Answer» B. cost | |
| 42. |
Cost accounting is based on…......................figures. |
| A. | estimated |
| B. | historical |
| C. | actual |
| D. | none of these. |
| Answer» B. historical | |
| 43. |
Cost Accounting has been developed becauseof….........................ofFinancial Accounting. |
| A. | limitations |
| B. | advantages |
| C. | both a & b |
| D. | none of these |
| Answer» B. advantages | |
| 44. |
…………is not the scope ofCost Accountancy. |
| A. | ascertaining cost |
| B. | cost accounting |
| C. | cost control |
| D. | tax planning |
| Answer» E. | |
| 45. |
……….costing is a type or technique of costing. |
| A. | absorption |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 46. |
costing is a type or technique of costing. |
| A. | marginal |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 47. |
Operating costing is also known as........................costing. |
| A. | service |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 48. |
Process costing is also known as…......................costing. |
| A. | continuous |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 49. |
……….costing is applicable to printers. |
| A. | process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» E. | |
| 50. |
In automobile,..............................costing is used |
| A. | process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» D. job | |