2081 + Mcqs in Accounting Page 13 McqOptions

601.	……….is the consolidated summary of the various functional budgets.
A.	master budget
B.	sales budget
C.	performance budget
D.	cash budget
Answer» B. sales budget

Discussion

602.	………budget gives an estimate of the anticipated receipts and payment of cashduring the budget period.
A.	sales
B.	production
C.	cash
D.	master
Answer» D. master

Discussion

603.	The budget relating to.................... must be prepared first and the other budgetsshould be prepared in the light of that factor.
A.	limiting factor
B.	materials
C.	labour
D.	production
Answer» B. materials

Discussion

604.	…….is a budget which is updated continuously by adding a further period (amonth/quarter) and deducting a corresponding earlierperiod.
A.	rolling budget
B.	continuous budget
C.	annual budget
D.	both a & b
Answer» E.

Discussion

605.	An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, theabnormal loss is................. kg
A.	400
B.	300
C.	500
D.	600
Answer» C. 500

Discussion

606.	Budgeting system…................ key managerial functions. School of Distance EducationCost Accounting Page 20
A.	dismisses
B.	integrates
C.	discharges
D.	none of these
Answer» C. discharges

Discussion

607.	…..arises where the actual process loss is less than the normal predeterminedprocess loss.
A.	normal loss
B.	abnormal loss
C.	abnormal gain
D.	none of these
Answer» D. none of these

Discussion

608.	In process costing, the abnormal loss is treated as .............. cost and writtenoff to profit & loss account.
A.	unit
B.	period
C.	future
D.	process
Answer» C. future

Discussion

609.	The cost of......................process loss is absorbed in the cost of production ofgood units.
A.	abnormal
B.	normal
C.	both a & b
D.	none of these
Answer» C. both a & b

Discussion

610.	.............……….process loss should be transferred to costing profit & lossaccount.
A.	abnormal
B.	normal
C.	both a& b
D.	none of these
Answer» B. normal

Discussion

611.	Equivalent units represent the production of a process in terms of…..units.
A.	completed
B.	total production
C.	semi-finished
D.	both a& c
Answer» B. total production

Discussion

612.	When actual loss is..........................than the estimated loss, the differencebetween the two is considered to be abnormal loss.
A.	more
B.	less
C.	both a & b)
D.	none of these
Answer» B. less

Discussion

613.	When actual loss is................than the estimated loss, the differencebetween the two is considered to be abnormal gain
A.	more
B.	less
C.	higher
D.	none of these
Answer» C. higher

Discussion

614.	In ……………………costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations towhich costs are collected and averaged over the units produced during the year:
A.	multiple
B.	process
C.	operation
D.	single.
Answer» D. single.

Discussion

615.	The method of costing applied in biscuit industries is...................costingand in steel industry…............. costing.
A.	job, process
B.	job, contract
C.	batch, multiple
D.	process, operation
Answer» B. job, contract

Discussion

616.	In transportation costing a composite unit such as.......................is used.
A.	passenger mile/km or ten kilometer
B.	per km
C.	per passenger
D.	per stop
Answer» B. per km

Discussion

617.	Boiler house costing is an example of..........................costing
A.	operation
B.	process
C.	service
D.	none of these
Answer» D. none of these

Discussion

618.	In electricity supply company uses ...................... as cost unit.
A.	kilo watt hour
B.	per household
C.	voltage
D.	none of these
Answer» B. per household

Discussion

619.	In transport costing...........................charges vary more or less in directproportion to kilometers run.
A.	running
B.	petrol
C.	drivers salary
D.	tax
Answer» B. petrol

Discussion

620.	Maintenance charges are in the nature of..............................expenses.
A.	fixed
B.	variable
C.	semi-variable
D.	none of these
Answer» D. none of these

Discussion

621.	….is the most suitable method in a transport industry.
A.	operation costing
B.	service costing
C.	process costing
D.	job costing
Answer» C. process costing

Discussion

622.	If the amount of work certified is less than…......... of the contract price, thenno profit should be taken to Profit & Loss Account.
A.	20%
B.	25%
C.	33 1/3%
D.	40%
Answer» C. 33 1/3%

Discussion

623.	When the completion stage of a contract is less than ¼, the totalexpenditure on the contract is transferred to...............................account.
A.	work-in-progress
B.	profit and loss account
C.	miscellaneous account
D.	none of these
Answer» B. profit and loss account

Discussion

624.	The loss incurred on an incomplete contract is transferred to………….account.
A.	costing profit and loss account
B.	profit and loss account
C.	trading account
D.	deferred to next year.
Answer» C. trading account

Discussion

625.	The .....................costing is applied when a quantity of similar and identicalproducts are manufactured together as one Job.
A.	job
B.	batch
C.	operation
D.	output
Answer» C. operation

Discussion

626.	Economic Batch Quantity depends on...........................and…………..costs.
A.	material, labour
B.	set-up costs, carrying
C.	transportation, carrying
D.	warehousing, labour
Answer» C. transportation, carrying

Discussion

627.	Economic Batch Quantity is an important point to be determined inindustries where...................... costing is employed.
A.	job
B.	batch
C.	operation
D.	output
Answer» C. operation

Discussion

628.	An automobile service unit uses..........................costing.
A.	specific order
B.	batch
C.	job
D.	contract
Answer» D. contract

Discussion

629.	Each job has a ..................... prepared for it that bears the job number andwhich is used to collect all cost data relating to job.
A.	job time sheet
B.	job cost card
C.	job ticket
D.	job account
Answer» C. job ticket

Discussion

630.	Printers use ......................... costing.
A.	process
B.	batch
C.	job
D.	contract
Answer» D. contract

Discussion

631.	In................................ each job is a cost unit to which all costs are assigned.
A.	batch costing
B.	job costing
C.	process costing
D.	operation costing
Answer» C. process costing

Discussion

632.	The Profit/Volume ratio or marginal ratio expresses the relation of………………
A.	profit
B.	marginal cost
C.	contribution
D.	none of these
Answer» D. none of these

Discussion

633.	Salary paid to general manager is an item of………………expenses.
A.	fixed
B.	variable
C.	semi-variable
D.	estimated
Answer» B. variable

Discussion

634.	Telephone expense is ......................expense.
A.	variable
B.	semi-variable
C.	fixed
D.	none of these
Answer» C. fixed

Discussion

635.	Fancy packing is an example of .................. expenses.
A.	selling
B.	distribution
C.	administration
D.	factory
Answer» B. distribution

Discussion

636.	………expenses are partly fixed and partly variable.
A.	all expenses
B.	variable
C.	fixed
D.	semi-variable
Answer» E.

Discussion

637.	Unsuccessful research expenditure should be ......................... costaccounts.
A.	excluded from
B.	included in
C.	apportioned in
D.	none of these
Answer» B. included in

Discussion

638.	The per unit expense of the ……………portion factory overhead varies with the volume of production while…..........................portion remains thesame with volume.
A.	fixed, variable
B.	variable, fixed
C.	variable, semi-variable
D.	none of these
Answer» B. variable, fixed

Discussion

639.	….expenses are excluded from cost.
A.	normal
B.	abnormal
C.	both a & b
D.	none of these
Answer» C. both a & b

Discussion

640.	is the amount by which the absorbed overheads fall shortof the actual amount of overheads incurred.
A.	over absorption of overheads
B.	under absorption of overheads
C.	overheads absorption
D.	none of these.
Answer» C. overheads absorption

Discussion

641.	is the excess of overheads absorbed over the actual amountof overheads incurred.
A.	over absorption of overheads
B.	under absorption of overheads
C.	overheads absorption
D.	none of these.
Answer» B. under absorption of overheads

Discussion

642.	Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only tothe …………..
A.	production departments
B.	service departments
C.	both a & b
D.	none of these
Answer» B. service departments

Discussion

643.	In............................................, two piece rates are set for each job.
A.	merrick’s multiple piece rate system
B.	rowan’s premium plan
C.	taylor’s differential piece rate system
D.	none of these
Answer» D. none of these

Discussion

644.	Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between…........................of thestandard output.
A.	0% and 100%
B.	0% and 120%
C.	0% and 83%
D.	none of these
Answer» D. none of these

Discussion

645.	Under Merrick’s multiple piece rate system, 120% of the ordinarypiece rate is given to workers whose level of performance is between…........................of the standard output.
A.	83% and 100%
B.	100% and 120%
C.	0% and 83%
D.	none of these
Answer» C. 0% and 83%

Discussion

646.	Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between…….of the standard output.
A.	83% and 100%
B.	100% and 120%
C.	0% and 83%
D.	none of these
Answer» B. 100% and 120%

Discussion

647.	Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is
A.	110000
B.	80000
C.	120000
D.	10000
Answer» C. 120000

Discussion

648.	Taylors differential piece rate system provides for higher rate to …….workers.
A.	inefficient
B.	efficient
C.	both a & b
D.	lazy
Answer» C. both a & b

Discussion

649.	………..is the practice of charging all costs, both variable and fixed , to operations,processes, or products.
A.	marginal costing
B.	absorption costing
C.	differential costing
D.	none of the above
Answer» C. differential costing

Discussion

650.	……….is the excess of sales over marginal cost of sales
A.	profit
B.	margin
C.	loss
D.	contribution
Answer» E.

Discussion

Explore topic-wise MCQs in Finance & Accounting.

……….is the consolidated summary of the various functional budgets.

………budget gives an estimate of the anticipated receipts and payment of cashduring the budget period.

The budget relating to.................... must be prepared first and the other budgetsshould be prepared in the light of that factor.

…….is a budget which is updated continuously by adding a further period (amonth/quarter) and deducting a corresponding earlierperiod.

An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, theabnormal loss is................. kg

Budgeting system…................ key managerial functions. School of Distance EducationCost Accounting Page 20

…..arises where the actual process loss is less than the normal predeterminedprocess loss.

In process costing, the abnormal loss is treated as .............. cost and writtenoff to profit & loss account.

The cost of......................process loss is absorbed in the cost of production ofgood units.

.............……….process loss should be transferred to costing profit & lossaccount.

Equivalent units represent the production of a process in terms of…..units.

When actual loss is..........................than the estimated loss, the differencebetween the two is considered to be abnormal loss.

When actual loss is................than the estimated loss, the differencebetween the two is considered to be abnormal gain

In ……………………costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations towhich costs are collected and averaged over the units produced during the year:

The method of costing applied in biscuit industries is...................costingand in steel industry…............. costing.

In transportation costing a composite unit such as.......................is used.

Boiler house costing is an example of..........................costing

In electricity supply company uses ...................... as cost unit.

In transport costing...........................charges vary more or less in directproportion to kilometers run.

Maintenance charges are in the nature of..............................expenses.

….is the most suitable method in a transport industry.

If the amount of work certified is less than…......... of the contract price, thenno profit should be taken to Profit & Loss Account.

When the completion stage of a contract is less than ¼, the totalexpenditure on the contract is transferred to...............................account.

The loss incurred on an incomplete contract is transferred to………….account.

The .....................costing is applied when a quantity of similar and identicalproducts are manufactured together as one Job.

Economic Batch Quantity depends on...........................and…………..costs.

Economic Batch Quantity is an important point to be determined inindustries where...................... costing is employed.

An automobile service unit uses..........................costing.

Each job has a ..................... prepared for it that bears the job number andwhich is used to collect all cost data relating to job.

Printers use ......................... costing.

In................................ each job is a cost unit to which all costs are assigned.

The Profit/Volume ratio or marginal ratio expresses the relation of………………

Salary paid to general manager is an item of………………expenses.

Telephone expense is ......................expense.

Fancy packing is an example of .................. expenses.

………expenses are partly fixed and partly variable.

Unsuccessful research expenditure should be ......................... costaccounts.

The per unit expense of the ……………portion factory overhead varies with the volume of production while…..........................portion remains thesame with volume.

….expenses are excluded from cost.

is the amount by which the absorbed overheads fall shortof the actual amount of overheads incurred.

is the excess of overheads absorbed over the actual amountof overheads incurred.

Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only tothe …………..

In............................................, two piece rates are set for each job.

Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between…........................of thestandard output.

Under Merrick’s multiple piece rate system, 120% of the ordinarypiece rate is given to workers whose level of performance is between…........................of the standard output.

Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between…….of the standard output.

Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is

Taylors differential piece rate system provides for higher rate to …….workers.

………..is the practice of charging all costs, both variable and fixed , to operations,processes, or products.

……….is the excess of sales over marginal cost of sales