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. |
………. 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» B. Historical cost | |
| 2. |
The cost of direct material is termed as………….. |
| A. | Direct labour cost |
| B. | Direct material cost |
| C. | Overheads |
| D. | none |
| Answer» C. Overheads | |
| 3. |
………….is applied where production is carried out as per specific order and customerspecifications. |
| A. | Batch costing |
| B. | Job costing |
| C. | Contract costing |
| D. | Fixed expense |
| Answer» C. Contract costing | |
| 4. |
Under the…………. method of pricing issues, stock is valued at historical price. |
| A. | FIFO |
| B. | LIFO |
| C. | Simple Average |
| D. | none |
| Answer» C. Simple Average | |
| 5. |
There are four methods of government procurement. Which is not one of these methods? |
| A. | Assistance |
| B. | Sealed bidding |
| C. | Competitive proposals |
| D. | Acquisition |
| Answer» E. | |
| 6. |
The Bid Evaluation process is characterized by all of the following activities except? |
| A. | Evaluation of suppliers financial resources |
| B. | Ability to comply with technical specifications |
| C. | Delivery schedule and cost factors |
| D. | Competitors method of sourcing |
| Answer» E. | |
| 7. |
………………………..is an element of material control |
| A. | Purchase Control |
| B. | Material Control |
| C. | Cost Control |
| D. | none |
| Answer» B. Material Control | |
| 8. |
Telephone expense is a …………………. Expense |
| A. | Fixed |
| B. | Variable |
| C. | Semi – variable |
| D. | none |
| Answer» D. none | |
| 9. |
All workers who are directly engaged in manufacturing activity are known as……………labour. |
| A. | Direct |
| B. | Indirect |
| C. | Contract |
| D. | none |
| Answer» B. Indirect | |
| 10. |
Cost unit in a college may be………… |
| A. | teacher |
| B. | Non teacher staff |
| C. | Student |
| D. | Number of departments |
| Answer» D. Number of departments | |
| 11. |
The………………..is maintained by the storekeeper. |
| A. | Bin Card |
| B. | Sales report |
| C. | Production report |
| D. | none |
| Answer» B. Sales report | |
| 12. |
__________ is a written order directing the contractor to make changes according to the provisions of the contract documents. |
| A. | Change order / purchase order amendment |
| B. | Contract order modifications |
| C. | Contractor claim |
| D. | Owner directive |
| Answer» B. Contract order modifications | |
| 13. |
A location, person or item of equipment for which costs may be ascertained and used forthe purposes of cost control is known as . |
| A. | Cost Centre |
| B. | Cost Sheet |
| C. | Cost Unit |
| D. | both (a) and (b) |
| Answer» B. Cost Sheet | |
| 14. |
Weighted average method is same as: |
| A. | Specific identification method |
| B. | LIFO |
| C. | FIFO |
| D. | None of the above |
| Answer» E. | |
| 15. |
The purchasing cycle consists of all the following elements except? |
| A. | Defined need |
| B. | Transmit Need |
| C. | Inspection |
| D. | Price and Terms |
| Answer» D. Price and Terms | |
| 16. |
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» C. Works cost | |
| 17. |
……………………method of pricing material issues provides a better matching of current costswith current revenues. |
| A. | FIFO |
| B. | LIFO |
| C. | Simple Average |
| D. | none |
| Answer» C. Simple Average | |
| 18. |
Cost of goods available for sale can be calculated by: |
| A. | Opening stock + purchases |
| B. | Closing stock + purchases |
| C. | Opening stock + purchases – closing stock |
| D. | none |
| Answer» B. Closing stock + purchases | |
| 19. |
In automobile industry cost unit is………… |
| A. | Number |
| B. | Automobile quality |
| C. | Number of automobile industry |
| D. | Either (a) or (c) |
| Answer» C. Number of automobile industry | |
| 20. |
…………..cost represents the increase or decrease in total cost which occurs with change inoutput. |
| A. | Conversion cost |
| B. | Marginal cost |
| C. | Explicit cost |
| D. | Method |
| Answer» C. Explicit cost | |
| 21. |
…………………… method of pricing issues follows the principle that material received first areissued first. |
| A. | Weighted Average |
| B. | LIFO |
| C. | FIFO |
| D. | none |
| Answer» D. none | |
| 22. |
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» C. FIFO | |
| 23. |
………………. 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» C. Profit center | |
| 24. |
Cost accounting is based on……………..figures. |
| A. | Approximated |
| B. | Estimated |
| C. | Historical |
| D. | Either (a) or (c) |
| Answer» C. Historical | |
| 25. |
effective purchase control fixes the responsibilities of………………. |
| A. | Operating Units |
| B. | Purchase Unit |
| C. | Cost Unit |
| D. | none |
| Answer» B. Purchase Unit | |
| 26. |
The cost of corrective action taken by the purchaser and chargeable to the supplier underthe terms of the contract is: |
| A. | Payment authorization |
| B. | Bid cost considerations |
| C. | Release payment |
| D. | Back charge |
| Answer» E. | |
| 27. |
Re-ordering level is calculated as |
| A. | Maximum consumption rate x Maximum re-order period |
| B. | Minimum consumption rate x Minimum re-order period |
| C. | Maximum consumption rate x Minimum re-order period |
| D. | Minimum consumption rate x Maximum re-order period |
| Answer» B. Minimum consumption rate x Minimum re-order period | |
| 28. |
If cost of sales exceeds sales it will be |
| A. | Profit |
| B. | Loss |
| C. | Gain |
| D. | none |
| Answer» C. Gain | |
| 29. |
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» D. All of the above | |
| 30. |
The ……………..method of codification is generally based on the mnemonic system. |
| A. | Alphabetical |
| B. | Numerical |
| C. | Alpha-Numerical |
| D. | none |
| Answer» D. none | |
| 31. |
Weighted average cost method produces different allocation of inventory costs in periodicand perpetual inventory system? |
| A. | Yes |
| B. | No |
| C. | all |
| D. | none |
| Answer» B. No | |
| 32. |
Machine hour rate in the cost of running a machine |
| A. | Per hour |
| B. | Per day |
| C. | Per work |
| D. | none |
| Answer» C. Per work | |
| 33. |
The process that may be used by an unsuccessful supplier to seek remedy for a non awardof work is: |
| A. | Bid protest |
| B. | Stop work order |
| C. | Back charge |
| D. | Contract dispute |
| Answer» B. Stop work order | |
| 34. |
The amount of expenditure incurred on, or attributable to, a specified thing or an activity orcost unit is known as |
| A. | Product |
| B. | Cost |
| C. | Batch |
| D. | Financial Accounting |
| Answer» C. Batch | |
| 35. |
The cost of insurance and taxes are included in |
| A. | Cost of ordering |
| B. | Set up cost |
| C. | Inventory carrying cost |
| D. | Cost of shortages |
| Answer» D. Cost of shortages | |
| 36. |
…………… is he grouping of material according to its nature. |
| A. | Classification |
| B. | Codification |
| C. | Centralization |
| D. | none |
| Answer» B. Codification | |
| 37. |
The expenses which can be identified with and allocated to cost centers and cost units aretermed as…………….. |
| A. | Direct material |
| B. | Direct labour |
| C. | Direct expenses |
| D. | none |
| Answer» D. none | |
| 38. |
Cost accounting has been developed because of………………financial accounting. |
| A. | Limitations |
| B. | Expenditure |
| C. | Statutory requirements |
| D. | both (a) and (b) |
| Answer» C. Statutory requirements | |
| 39. |
……………………..expenses are also called as chargeable expenses. |
| A. | Partly direct and partly indirect |
| B. | Indirect |
| C. | Direct |
| D. | None of the above |
| Answer» D. None of the above | |
| 40. |
The minimum stock level is calculated as |
| A. | Reorder level – (Normal consumption x Normal delivery time) |
| B. | Reorder level + (Normal consumption x Normal delivery time) |
| C. | (Reorder level + Normal consumption) x Normal delivery time |
| D. | (Reorder level + Normal consumption) / Normal delivery time |
| Answer» B. Reorder level + (Normal consumption x Normal delivery time) | |
| 41. |
The aggregate amount of all the items of expenses paid or payable for the particular productor service is called as |
| A. | Direct cost |
| B. | Committed cost |
| C. | Total Cost |
| D. | Marginal cost |
| Answer» D. Marginal cost | |
| 42. |
Fixed price and incentive type contracts place responsibility for performance and financialrisks associated with delay or non-performance on the: |
| A. | Contractor |
| B. | Owner |
| C. | Lending institution |
| D. | Project manager |
| Answer» B. Owner | |
| 43. |
Fees paid to Architect is the example of…………... |
| A. | Direct labour |
| B. | Direct expenses |
| C. | Direct material |
| D. | none |
| Answer» C. Direct material | |
| 44. |
………………..is the procedure for assigning symbols to the material. |
| A. | Classification |
| B. | Codification |
| C. | Centralisation |
| D. | none |
| Answer» C. Centralisation | |
| 45. |
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» C. As the fixed expenses goes up | |
| 46. |
Which of the following is true for Inventory control? |
| A. | Economic order quantity has minimum total cost per order |
| B. | Inventory carrying costs increases with quantity per order |
| C. | Ordering cost decreases with lo size |
| D. | All of the above |
| Answer» E. | |
| 47. |
Every……………of cost is divided into direct cost and indirect cost. |
| A. | Factor |
| B. | Element |
| C. | Part |
| D. | none |
| Answer» C. Part | |
| 48. |
The…………….must maintain a proper classified record of all purchases, uses and stock ofmaterials. |
| A. | Costing officer |
| B. | Purchase manager |
| C. | stores clerk |
| D. | none |
| Answer» C. stores clerk | |
| 49. |
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» C. Expenses | |
| 50. |
Cost of leather used in shoe making is the example of direct…………. |
| A. | Overheads |
| B. | Labour |
| C. | Material |
| D. | none |
| Answer» D. none | |