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. |
………………….. Cost per unit does not change with change in activity level |
| A. | Overhead |
| B. | Variable |
| C. | Fixed |
| D. | none |
| Answer» C. Fixed | |
| 2. |
……………………is the head of the purchase department. |
| A. | Sales Manager |
| B. | Purchase Manager |
| C. | Marketing Manager |
| D. | none |
| Answer» C. Marketing Manager | |
| 3. |
JIT contributed to the |
| A. | Reduced inventories and WIP |
| B. | Reduced suppliers and vendors |
| C. | Reduced information flows |
| D. | Reduced manpower planning |
| Answer» B. Reduced suppliers and vendors | |
| 4. |
‘Buffer stock’ is the level of stock |
| A. | Half of the actual stock |
| B. | At which the ordering process should start |
| C. | Minimum stock level below which actual stock should not fall |
| D. | Maximum stock in inventory |
| Answer» D. Maximum stock in inventory | |
| 5. |
Which of the following is not used as a base for apportionment of administrationoverheads? |
| A. | Direct wages |
| B. | Works cost |
| C. | Conversion cost |
| D. | Sales value |
| Answer» B. Works cost | |
| 6. |
The system of purchasing from one’s customer preferred to others is known as |
| A. | Forward Buying |
| B. | Tender Buying |
| C. | Reciprocal Buying |
| D. | Blanket Order |
| Answer» D. Blanket Order | |
| 7. |
Operating costing is applicable to |
| A. | Transport |
| B. | Hospitals |
| C. | Electricity |
| D. | none |
| Answer» B. Hospitals | |
| 8. |
In a perpetual inventory system, the weighted average cost method is called: |
| A. | Moving average cost method |
| B. | Residual method |
| C. | Arithmetic cost method |
| D. | none |
| Answer» B. Residual method | |
| 9. |
Definitive contract terms are spelled out in the: |
| A. | Pre-award phase |
| B. | Award phase |
| C. | Post-award phase |
| D. | Purchasing phase |
| Answer» D. Purchasing phase | |
| 10. |
……….. is the first and most important element of cost. |
| A. | Expenses |
| B. | Labour |
| C. | Material |
| D. | none |
| Answer» D. none | |
| 11. |
An account payable is posted to accounting upon creation of the following document |
| A. | Purchase Requisition |
| B. | Purchase Order |
| C. | Good Receipt |
| D. | All of the above |
| Answer» E. | |
| 12. |
The Economic Order Quantity (EOQ) is calculated as |
| A. | (2D*d/h)^1/3 |
| B. | Root of 2AO / C |
| C. | COST + Profit = Sales |
| D. | none of the above |
| Answer» C. COST + Profit = Sales | |
| 13. |
Purchasing department should purchase the material strictly as per ……………………….of thevarious department. |
| A. | requisition |
| B. | Bill book |
| C. | Balance Sheet |
| D. | Trading Account |
| Answer» B. Bill book | |
| 14. |
For prompt and correct payment of purchase bills there should be close liaison with the…………..and ……..department. |
| A. | account and store |
| B. | account and sales |
| C. | sales and Purchase |
| D. | Administration and Purchase |
| Answer» B. account and sales | |
| 15. |
The objective(s) of forward purchasing is / are |
| A. | To guard against interruption in supply |
| B. | To economize the use of storage space |
| C. | To guard against the future rise in price |
| D. | All of these |
| Answer» B. To economize the use of storage space | |
| 16. |
……………….covers accounts of whole business relating to all commercial transactions. |
| A. | Cost Accounting |
| B. | Financial Accounting |
| C. | Environmental Accounting |
| D. | Reduction of cost |
| Answer» C. Environmental Accounting | |
| 17. |
Classification of cost into factory cost, administrative cost, selling & distribution cost andresearch and development cost is done on the basis of…………... |
| A. | Elements |
| B. | Functions |
| C. | Time |
| D. | Strategy |
| Answer» C. Time | |
| 18. |
Cost reimbursable contracts are equivalent to: |
| A. | Progress payment contracts |
| B. | Extra work order contracts |
| C. | Cost plus contracts |
| D. | Fixed price contracts |
| Answer» D. Fixed price contracts | |
| 19. |
If the total cost of a product is Rs.25, 000/- and the sales figure is 47,000/-, then the productis in…………by Rs.22, 000/-. |
| A. | Loss |
| B. | Profit |
| C. | Neither profit nor loss |
| D. | Commission |
| Answer» C. Neither profit nor loss | |
| 20. |
Wages paid to direct labour are also known as………………wages. |
| A. | Productive |
| B. | Compensative |
| C. | Indirect |
| D. | none |
| Answer» B. Compensative | |
| 21. |
__________ is a formal invitation to submit a price for goods and / or services as specified. |
| A. | Request for quotation |
| B. | Bid response |
| C. | Intention to bid |
| D. | Request for proposal |
| Answer» E. | |
| 22. |
US GAAP allows FIFO, LIFO and Weighted average method to value stock? |
| A. | True |
| B. | False |
| C. | all |
| D. | none |
| Answer» B. False | |
| 23. |
After receiving the ……………………..the Purchase department starts exploring the source ofmaterials and suppliers. |
| A. | Purchase Requisition |
| B. | Purchase Data |
| C. | Sales Information |
| D. | Process Of Purchase |
| Answer» B. Purchase Data | |
| 24. |
The overhead cost incurred from the stage of procurement of raw material till the stage ofproduction of finished goods is known as…… . |
| A. | Office overheads |
| B. | Factory overheads |
| C. | Selling overheads |
| D. | PRIME COST |
| Answer» C. Selling overheads | |
| 25. |
The aggregate of indirect material, indirect labour and indirect expenses in termedas……………. |
| A. | Material Cost |
| B. | Overheads |
| C. | Labour Cost |
| D. | Closing Stock |
| Answer» C. Labour Cost | |
| 26. |
The contract is signed at the end of the: |
| A. | Pre-award phase |
| B. | Award phase |
| C. | Post-award phase |
| D. | Award cycle |
| Answer» E. | |
| 27. |
…………………..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» C. Cost Accountancy | |
| 28. |
Purchase of right quantity of material avoids locking up of ……………. |
| A. | Working Capital |
| B. | Current assets |
| C. | Reserves and Surplus |
| D. | none |
| Answer» B. Current assets | |
| 29. |
Which is not an element of procurement management? |
| A. | Purchasing |
| B. | Acquisition |
| C. | Marketing |
| D. | B and C |
| Answer» E. | |
| 30. |
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» D. none | |
| 31. |
………………..is an important element in purchase procedure. |
| A. | Time |
| B. | Demand |
| C. | Recording |
| D. | None of the above |
| Answer» B. Demand | |
| 32. |
__________ defines when the work is ready for or is being used for the purpose intendedand is so certified. |
| A. | Final completion |
| B. | Substantial completion |
| C. | Final acceptance |
| D. | Mechanical completion |
| Answer» C. Final acceptance | |
| 33. |
__________ is based on information gathered and analyzed about demand and supply. this forecast provides a prediction of short and long term prices and the underlying reasons for those trends. |
| A. | Sales forecast |
| B. | Consumer price index |
| C. | Production forecast |
| D. | Price forecast |
| Answer» B. Consumer price index | |
| 34. |
…………………helps the management to eliminate inefficiencies caused by materialwastage, use of obsolete machinery, improper planning etc. |
| A. | Financial Accounting |
| B. | Cost Accounting |
| C. | Environmental Accounting |
| D. | Management control |
| Answer» C. Environmental Accounting | |
| 35. |
By which means is a contractor able to control costs overruns due to changingrequirements? |
| A. | Project data review |
| B. | Change order |
| C. | Change control |
| D. | Contract negotiations |
| Answer» D. Contract negotiations | |
| 36. |
Wages paid to carpenter is the example of direct…………... |
| A. | Material |
| B. | Overheads |
| C. | Labour |
| D. | none |
| Answer» D. none | |
| 37. |
Costing is a technique of………. |
| A. | Inventory control |
| B. | Management control |
| C. | Ascertainment of cost |
| D. | Calculation of cost |
| Answer» B. Management control | |
| 38. |
Marginal costing is also known as ………………….. costing |
| A. | Variable |
| B. | Semi-variable |
| C. | Fixed |
| D. | Historical costing |
| Answer» B. Semi-variable | |
| 39. |
__________ is a request for interim stoppage of work due to non conformance, funding ortechnical considerations. |
| A. | Bid protest |
| B. | Stop work order |
| C. | Notice to proceed |
| D. | Supplier default notice |
| Answer» C. Notice to proceed | |
| 40. |
Material, Labour and Expenses are the three important…………. of cost. |
| A. | Methods |
| B. | Elements |
| C. | Techniques |
| D. | Process |
| Answer» C. Techniques | |
| 41. |
………………cost is predetermined cost for each element of cost. |
| A. | Marginal |
| B. | Historical |
| C. | Standard |
| D. | none |
| Answer» D. none | |
| 42. |
The time period between placing an order its receipt in stock is known as |
| A. | Lead time |
| B. | Carrying time |
| C. | Shortage time |
| D. | Over time |
| Answer» B. Carrying time | |
| 43. |
The cost that remains unchanged in spite of change in volume of production is knownas…………. |
| A. | Fixed cost |
| B. | Variable cost |
| C. | Semi-variable cost |
| D. | Direct Cost |
| Answer» B. Variable cost | |
| 44. |
The total of all direct expenses is known as ……… |
| A. | Total cost |
| B. | Overhead |
| C. | Prime cost |
| D. | Work cost |
| Answer» D. Work cost | |
| 45. |
The weighted average method is most commonly employed when inventory items are: |
| A. | Different from each other |
| B. | Connected closely with each other |
| C. | Cost Accountancy |
| D. | Practice |
| Answer» C. Cost Accountancy | |
| 46. |
The optimum level of inventory is popularly referred to as the ……….. |
| A. | Minimum stock level |
| B. | Re-order stock level |
| C. | Economic Order Quantity |
| D. | none |
| Answer» D. none | |
| 47. |
Statement prepared to show the different elements of cost |
| A. | Time sheet |
| B. | Cost sheet |
| C. | Work sheet |
| D. | none |
| Answer» C. Work sheet | |
| 48. |
…………………is a record of both quantities and values. |
| A. | Bin Card |
| B. | Stores Ledger |
| C. | Inspection report |
| D. | none |
| Answer» C. Inspection report | |
| 49. |
Bin Card is also known as……………. |
| A. | Stock Card |
| B. | Cost Card |
| C. | Purchase Card |
| D. | none |
| Answer» B. Cost Card | |
| 50. |
…………………. Is defined on the guidance and regulation by executive action of cost operatingand under taking |
| A. | Cost reduction |
| B. | Cost control |
| C. | Cost estimation |
| D. | none |
| Answer» B. Cost control | |