MCQOPTIONS
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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 401. |
…………..is the system of costing under which costs are determined after theyhave been incurred. |
| A. | Uniform costing |
| B. | Historical costing |
| C. | Standard costing |
| D. | Cost Accounting |
| Answer» C. Standard costing | |
| 402. |
A purchasing operation does not contain this classification of work? |
| A. | Management |
| B. | Buying |
| C. | Follow-up and expedition |
| D. | Marketing |
| Answer» E. | |
| 403. |
In cost sheet the expenses on discount allowed are considered under………………overheads. |
| A. | Factory |
| B. | Office |
| C. | Selling and Distribution |
| D. | none |
| Answer» D. none | |
| 404. |
Average stock level can be calculated as |
| A. | Minimum stock level + ½ of Re-order level |
| B. | Maximum stock level + ½ of Re-order level |
| C. | Minimum stock level + 1/3 of Re-order level |
| D. | Maximum stock level + 1/3 of Re-order level |
| Answer» B. Maximum stock level + ½ of Re-order level | |
| 405. |
Cost accounting is the art, science and …………… cost of accountant |
| A. | Profession |
| B. | Management |
| C. | Administration |
| D. | none |
| Answer» B. Management | |
| 406. |
…………is an extension of job costing. |
| A. | Process costing |
| B. | Batch costing |
| C. | Contract costing |
| D. | Operation costing |
| Answer» C. Contract costing | |
| 407. |
……………….is specialized activity frequently carried on by a separate department under thecontrol of buyer or purchasing officer. |
| A. | Purchasing |
| B. | Selling |
| C. | Costing |
| D. | none |
| Answer» B. Selling | |
| 408. |
Purchase Budget has an impact on |
| A. | Profitability of the company |
| B. | Materials Budget of the company |
| C. | Bill of materials |
| D. | All of these |
| Answer» E. | |
| 409. |
The methods of job evaluation include: |
| A. | Grading |
| B. | Ranking |
| C. | Points value |
| D. | All of the above |
| Answer» E. | |
| 410. |
One of the objective of …………….is to avoid under and overstocking of material. |
| A. | Scientific Purchasing |
| B. | Purchasing |
| C. | Sales control |
| D. | none |
| Answer» B. Purchasing | |
| 411. |
……………… is concerned with accounting and recording of costs. |
| A. | Cost Accountancy |
| B. | Costing |
| C. | Cost Accounting |
| D. | Ascertainment of cost |
| Answer» D. Ascertainment of cost | |
| 412. |
The ………………include all types of expenses other than direct materials and direct labourwhich are incurred for a particular product or job. |
| A. | Direct labour |
| B. | Direct expenses |
| C. | Direct material |
| D. | none |
| Answer» C. Direct material | |
| 413. |
Which contract type should be used by the owner on a high risk project? |
| A. | Cost plus percentage of cost |
| B. | Cost plus incentive fee |
| C. | Lump sum |
| D. | Fixed price plus incentive fee |
| Answer» D. Fixed price plus incentive fee | |
| 414. |
The branch of accounting dealing with the classification, recording, allocation,summarization and reporting of current and prospective costs is known as |
| A. | Cost Accountancy |
| B. | Costing |
| C. | Cost Accounting |
| D. | Advantages |
| Answer» D. Advantages | |
| 415. |
Wages paid to direct workers are known as …………. |
| A. | Direct labour cost |
| B. | Indirect labour cost |
| C. | Direct material cost |
| D. | none |
| Answer» B. Indirect labour cost | |
| 416. |
The stores ledger is maintained by the …………… department. |
| A. | Stores |
| B. | Cost |
| C. | Purchase |
| D. | none |
| Answer» C. Purchase | |
| 417. |
The …………………………will in all his activities carry out the policy of his organization withregard o buying |
| A. | Purchasing Officer |
| B. | General Manager |
| C. | Head of the department |
| D. | none |
| Answer» B. General Manager | |
| 418. |
costing is used in transport undertaking. |
| A. | Operating |
| B. | Standard |
| C. | Marginal |
| D. | Service |
| Answer» E. | |
| 419. |
Depreciation is a ………….. Expense |
| A. | Fixed |
| B. | Variable |
| C. | Semi – variable |
| D. | none |
| Answer» B. Variable | |
| 420. |
Purchase order is a legal binding contract only if it is |
| A. | accepted by the supplier |
| B. | acknowledged by the supplier |
| C. | posted by the buyer |
| D. | none of these |
| Answer» B. acknowledged by the supplier | |
| 421. |
Advantage of both centralized buying and storage of having stock conveniently available atseveral issuing points are possible in……………. system of stores organization. |
| A. | Independent stores |
| B. | Central stores with Sub-stores |
| C. | Centralised Stores |
| D. | none |
| Answer» C. Centralised Stores | |
| 422. |
In the formula of Economic Order Quantity, the alphabet ‘O’ stands for…………. |
| A. | Ordering level |
| B. | Ordering Cost |
| C. | Ordering & Carrying Cost |
| D. | none |
| Answer» C. Ordering & Carrying Cost | |
| 423. |
……………….cost is partly variable and partly fixed. |
| A. | Fixed cost |
| B. | Semi-variable cost |
| C. | Variable cost |
| D. | Semi Fixed Cost |
| Answer» C. Variable cost | |
| 424. |
Purchase Control enables the management to reduce……….. |
| A. | cost of production |
| B. | Cost of material |
| C. | Cost of goods sold |
| D. | none |
| Answer» B. Cost of material | |
| 425. |
Which of the following is not a function of purchasing management? |
| A. | Selecting the source |
| B. | Placement of purchase order |
| C. | Physical controls of material |
| D. | None of these |
| Answer» E. | |
| 426. |
Under…………… method of pricing material issue the value of closing stock represents thecurrent market price. |
| A. | Weighted Average |
| B. | LIFO |
| C. | FIFO |
| D. | none |
| Answer» D. none | |
| 427. |
__________ is a register of suppliers invited to submit bids for goods / services as specified. |
| A. | Procurement invitation |
| B. | Bid list |
| C. | Resource identification |
| D. | Supplier's rankings |
| Answer» C. Resource identification | |
| 428. |
Direct…………..enter the product and form a part of finished product. |
| A. | Expenses |
| B. | Labour |
| C. | Materials |
| D. | none |
| Answer» D. none | |
| 429. |
…………………….is a buffer stock level or safety stock level under which the stock should not beallowed to fall. |
| A. | Average stock level |
| B. | Maximum stock level |
| C. | Minimum stock level |
| D. | none |
| Answer» D. none | |
| 430. |
Simple average method is based on the principle that materials issues should be valued at………… average price. |
| A. | Weighted |
| B. | Simple |
| C. | Periodic |
| D. | none |
| Answer» C. Periodic | |
| 431. |
Office overheads are also known as …………….overheads. |
| A. | Factory |
| B. | Selling |
| C. | Administrative |
| D. | Work Cost |
| Answer» D. Work Cost | |
| 432. |
The organisation of the purchase department depends on the…………..of the organisationand its likely quantum of purchase. |
| A. | Size |
| B. | Number of managers |
| C. | Number of workers |
| D. | none |
| Answer» B. Number of managers | |
| 433. |
………………is a statement showing cost of production of a particular product. |
| A. | Tender |
| B. | Quotation |
| C. | Cost sheet |
| D. | Statements |
| Answer» D. Statements | |
| 434. |
………………………..is concerned with formulation and / or application of principles, methodsand techniques of costing. |
| A. | Cost Accountancy |
| B. | Costing |
| C. | Cost Accounting |
| D. | Calculation of cost |
| Answer» B. Costing | |
| 435. |
The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 perunit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is |
| A. | 400 |
| B. | 440 |
| C. | 480 |
| D. | 500 |
| Answer» B. 440 | |
| 436. |
………………..purchase procedure should be installed to ensure that the purchases are madeat favourable prices. |
| A. | Marginal |
| B. | Standard |
| C. | Joint |
| D. | none |
| Answer» C. Joint | |
| 437. |
Direct …………….are those which can be identified in the product and can be measured. |
| A. | Expenses |
| B. | Labour |
| C. | Material |
| D. | none |
| Answer» D. none | |
| 438. |
Under……………… method of pricing issues, issues are valued at a price calculated by dividingthe total cost of material in the stock by the total quantity of material in stock. |
| A. | Simple average |
| B. | Weighted average |
| C. | Last in First out |
| D. | none |
| Answer» C. Last in First out | |
| 439. |
Rent on own building is a ……………….. |
| A. | Sunk cost |
| B. | Imputed cost |
| C. | Opportunity cost |
| D. | none |
| Answer» C. Opportunity cost | |
| 440. |
The cost of activities relating to create and stimulate demand for company’s products and tosecure orders is known as……….overheads. |
| A. | Administrative |
| B. | Factory |
| C. | Selling and Distribution |
| D. | Office |
| Answer» D. Office | |
| 441. |
……………….formsthe basis of entries to the stores ledger. |
| A. | Purchase Order |
| B. | Goods Received Note |
| C. | Purchase Requisition |
| D. | none |
| Answer» C. Purchase Requisition | |
| 442. |
Purchase manager must know the exact …………………….of materials which are used in theproduction. |
| A. | Specification |
| B. | Procedure |
| C. | Strategy |
| D. | modification |
| Answer» B. Procedure | |
| 443. |
On the basis of ……………… cost can be classified into fixed and variable. |
| A. | Behavior |
| B. | Element |
| C. | Function |
| D. | none |
| Answer» B. Element | |
| 444. |
Cost of production is also called ………………..if there is no selling and distribution expense |
| A. | Cost of sales |
| B. | Office cost |
| C. | Factory cost |
| D. | none |
| Answer» C. Factory cost | |
| 445. |
…………………..is the organisational head of the stores department. |
| A. | Storekeeper |
| B. | Purchase Manager |
| C. | Stores clerk |
| D. | none |
| Answer» B. Purchase Manager | |
| 446. |
Consumables are treated as……………overheads in cost sheet. |
| A. | Factory |
| B. | Office |
| C. | Selling and Distribution |
| D. | Cost of production |
| Answer» B. Office | |
| 447. |
Right quality means |
| A. | over specifying the quality standards for purchasers |
| B. | under specifying the quality for purchasing |
| C. | buying standard items |
| D. | Buying quality which suits the needs without incurring extra cost to the company |
| Answer» E. | |
| 448. |
Cost accountancy is the science, art and of cost accountant. |
| A. | Profession |
| B. | Management |
| C. | Administration |
| D. | Practice |
| Answer» E. | |
| 449. |
Proper classification and codification of various items in stores is essential forefficient…………….. . |
| A. | Record keeping |
| B. | Storage |
| C. | Selling |
| D. | none |
| Answer» C. Selling | |
| 450. |
The cost unit for the Gas Industry is……………. |
| A. | Per gallon |
| B. | Per tonne |
| C. | Cubic Meter |
| D. | Calculation of cost |
| Answer» D. Calculation of cost | |