MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 69 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The graph which plots the series of successive observations of specific procedure, operation or step at regular time intervals is called |
| A. | relevant costing diagram |
| B. | cause and effect diagram |
| C. | control chart |
| D. | pareto diagram |
| Answer» D. pareto diagram | |
| 2. |
The on-time performance and customer-response time are the examples of |
| A. | customer measures |
| B. | financial measures |
| C. | measures of growth and learning |
| D. | measures of internal business processes |
| Answer» B. financial measures | |
| 3. |
The employees that are trained to manage bottlenecks, during production operations; employee satisfaction are related to |
| A. | measures of growth and learning |
| B. | measures of internal business processes |
| C. | customer measures |
| D. | financial measures |
| Answer» B. measures of internal business processes | |
| 4. |
The costs that are incurred to find manufactured products, which does not meet specifications are called |
| A. | prevention costs |
| B. | external failure costs |
| C. | appraisal costs |
| D. | internal failure costs |
| Answer» D. internal failure costs | |
| 5. |
If the cost of direct materials use in the goods sold is $5000 and the total revenues are $9000 then the throughput contribution would be |
| A. | $5,000 |
| B. | $14,000 |
| C. | $4,000 |
| D. | $9,000 |
| Answer» D. $9,000 | |
| 6. |
The timeframe between placement of order until a finished good produces is classified as |
| A. | customer response time |
| B. | manufacturing lead time |
| C. | manufacturing cycle time |
| D. | both b and c |
| Answer» E. | |
| 7. |
The statistical quality control is also called |
| A. | statistical process control |
| B. | statistical failure control |
| C. | statistical control of prevention cost |
| D. | statistical control of sunk cost |
| Answer» B. statistical failure control | |
| 8. |
If the number of employees who left the job are 40, the total number of employees are 200, then the employee turnover ratio will be |
| A. | 0.6 |
| B. | 0.5 |
| C. | 0.2 |
| D. | 0.7 |
| Answer» D. 0.7 | |
| 9. |
If the value added manufacturing time is 65 minutes, the total manufacturing time is 80 minutes, then the manufacturing cycle time will be |
| A. | 0.8125 |
| B. | 0.6125 |
| C. | 0.9125 |
| D. | 1.725 |
| Answer» B. 0.6125 | |
| 10. |
A theory which describes techniques of operating income maximization, facing with non-bottleneck and bottleneck operations is |
| A. | theory of contribution |
| B. | theory of constraints |
| C. | theory of conflicts |
| D. | theory of maximization |
| Answer» C. theory of conflicts | |
| 11. |
A process by which employees can make decisions is divided by total number of processes to calculate |
| A. | employee turnover ratio |
| B. | employee empowerment ratio |
| C. | employee satisfaction ratio |
| D. | employee training percentage |
| Answer» C. employee satisfaction ratio | |
| 12. |
The factors identified by cause and effect diagrams include |
| A. | component and material factors |
| B. | machine-related factors |
| C. | human factors |
| D. | all of above |
| Answer» E. | |
| 13. |
If total number of employees surveyed are 200 and employees that indicate higher rating for satisfaction are 195, then employee satisfaction would be |
| A. | 94% |
| B. | 93% |
| C. | 95% |
| D. | 97.50% |
| Answer» E. | |
| 14. |
The total manufacturing time is multiplied to the manufacturing cycle efficiency to calculate |
| A. | manufacturing cycle efficiency |
| B. | value added manufacturing time |
| C. | responding time |
| D. | delivery time |
| Answer» C. responding time | |
| 15. |
The cost incur for defective products, after their shipment to customers is classified as |
| A. | prevention costs |
| B. | external failure costs |
| C. | appraisal costs |
| D. | internal failure costs |
| Answer» C. appraisal costs | |
| 16. |
The reduction in setup time, manufacturing cycle efficiency and average time of manufacturing for key products are the examples of |
| A. | measures of growth and learning |
| B. | measures of internal business processes |
| C. | customer measures |
| D. | financial measures |
| Answer» C. customer measures | |
| 17. |
The costs incur for defective products, before their shipment to customers can be categorized as |
| A. | prevention costs |
| B. | external failure costs |
| C. | appraisal costs |
| D. | internal failure costs |
| Answer» E. | |
| 18. |
The types of costs of quality consist of |
| A. | appraisal costs |
| B. | internal and external failure costs |
| C. | prevention costs |
| D. | all of above |
| Answer» E. | |
| 19. |
The quality aspect, that refers how well the product fulfills the customer demands, is classified as |
| A. | learning quality |
| B. | design quality |
| C. | conformance quality |
| D. | business process quality |
| Answer» C. conformance quality | |
| 20. |
The cost operations such as wages, salaries, depreciation, utilities and rent are summed together to calculate |
| A. | throughput costs |
| B. | investments |
| C. | operating costs |
| D. | marginal costs |
| Answer» D. marginal costs | |
| 21. |
The time a company takes until a good is produced after order placement is known as |
| A. | manufacturing lead time |
| B. | manufacturing cycle efficiency |
| C. | customer response time |
| D. | system process time |
| Answer» B. manufacturing cycle efficiency | |
| 22. |
The sum of manufacturing and waiting time for an order is classified as |
| A. | manufacturing efficiency time |
| B. | manufacturing cycle time |
| C. | responding time |
| D. | value chain time |
| Answer» C. responding time | |
| 23. |
The basic aspects of product quality must include the |
| A. | design quality |
| B. | conformance quality |
| C. | scorecard quality |
| D. | both a and b |
| Answer» E. | |
| 24. |
The time between a customer's order placement till the customer receives its delivery is known as |
| A. | manufacturing lead time |
| B. | manufacturing cycle time |
| C. | customer response time |
| D. | system process time |
| Answer» D. system process time | |
| 25. |
The costs that are incurred to prevent low quality goods production are classified as |
| A. | costs of quality |
| B. | costs of learning |
| C. | costs of reengineering |
| D. | costs of spoilage inventory |
| Answer» B. costs of learning | |
| 26. |
The fishbone diagram is an example of |
| A. | relevant costing diagram |
| B. | cause and effect diagram |
| C. | control chart |
| D. | Pareto diagram |
| Answer» C. control chart | |
| 27. |
The incurred costs to exclude the production of goods, that do not meet the specification, are called |
| A. | rework costs |
| B. | prevention costs |
| C. | incremental costs |
| D. | reengineering costs |
| Answer» C. incremental costs | |
| 28. |
The carrying costs of inventories and price discounts related to delayed deliveries are examples of |
| A. | measures of growth and learning |
| B. | measures of internal business processes |
| C. | customer measures |
| D. | financial measures |
| Answer» E. | |
| 29. |
The number of employees who left the company, divided by average number of employees to calculate the ratio is called |
| A. | employee turnover ratio |
| B. | employee empowerment ratio |
| C. | employee satisfaction ratio |
| D. | employee training percentage |
| Answer» B. employee empowerment ratio | |
| 30. |
The revenues are subtracted from the cost of direct materials of sold goods is to calculate |
| A. | throughput contribution |
| B. | operating cost contribution |
| C. | operating contribution |
| D. | marginal contribution |
| Answer» B. operating cost contribution | |
| 31. |
In an innovation process, operation process and post sales services are all sub processes of a perspective, named |
| A. | internal business process perspective |
| B. | external business process perspective |
| C. | leadership perspective |
| D. | reengineering perspective |
| Answer» B. external business process perspective | |
| 32. |
An approach which is used to manage unused capacity is |
| A. | reengineering |
| B. | downsizing |
| C. | upgrading |
| D. | none of above |
| Answer» C. upgrading | |
| 33. |
An example of learning and growth perspective in balanced scorecard is |
| A. | employee turnover rates |
| B. | operating capabilities and number of patents |
| C. | operating income and revenue growth |
| D. | customer satisfaction and market share |
| Answer» B. operating capabilities and number of patents | |
| 34. |
The balanced scorecard perspective, which measures strategy profitability and amount of operating income results from cost reduction is classified as |
| A. | learning perspective |
| B. | financial perspective |
| C. | internal business process perspective |
| D. | customer perspective |
| Answer» C. internal business process perspective | |
| 35. |
Which of the following is an example of internal business perspective in balanced scorecard? |
| A. | employee turnover rates |
| B. | operating capabilities and number of patents |
| C. | operating income and revenue growth |
| D. | customer satisfaction and market share |
| Answer» C. operating income and revenue growth | |
| 36. |
Considering two fiscal years 2013 and 2014, an input price in 2013 and 2014 are $9 and $11 per unit respectively and input required units in 2013 to produce output in 2014 are 30000 units, then cost effect of price recovery will be |
| A. | $60,000 |
| B. | $6,000 |
| C. | $65,000 |
| D. | $6,500 |
| Answer» B. $6,000 | |
| 37. |
The fundamental redesigning and rethinking of business processes to improve critical measures such as quality, speed, cost and customer satisfaction are called |
| A. | reengineering |
| B. | differentiation |
| C. | bargaining |
| D. | targeting |
| Answer» B. differentiation | |
| 38. |
An example of direct engineered cost is |
| A. | indirect material cost |
| B. | direct material cost |
| C. | direct labor cost |
| D. | indirect labor cost |
| Answer» C. direct labor cost | |
| 39. |
The translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as |
| A. | differentiation scorecard |
| B. | bargaining scorecard |
| C. | leadership scorecard |
| D. | balanced scorecard |
| Answer» E. | |
| 40. |
The formal way of differentiating, between non-random and random variations, in manufacturing process is classified as |
| A. | statistical process control |
| B. | statistical failure control |
| C. | statistical control of prevention cost |
| D. | statistical control of sunk cost |
| Answer» B. statistical failure control | |
| 41. |
The value added manufacturing time is divided by total manufacturing, is to calculate |
| A. | value chain efficiency |
| B. | value chain effectivity |
| C. | manufacturing cycle effectivity |
| D. | manufacturing cycle efficiency |
| Answer» E. | |
| 42. |
The delivery of goods by the time it is contracted to be delivered is known as |
| A. | effective performance |
| B. | efficient performance |
| C. | in-time performance |
| D. | on-time performance |
| Answer» E. | |
| 43. |
If the manufacturing cycle efficiency is 0.725 and the total manufacturing time is 45 minute, then the value added manufacturing time will be |
| A. | 42.625 |
| B. | 36.724 |
| C. | 32.625 |
| D. | 41.625 |
| Answer» D. 41.625 | |
| 44. |
The chart which represents how regularly the defect occurs in production process is classified as |
| A. | relevant costing diagram |
| B. | cause and effect diagram |
| C. | control chart |
| D. | Pareto chart |
| Answer» E. | |
| 45. |
Considering the balanced scorecard, the perspective in which performance of organization includes is |
| A. | financial perspective |
| B. | learning and growth perspective |
| C. | customer perspective |
| D. | all of above |
| Answer» E. | |
| 46. |
Considering two years 2013 and 2014, the quantity of output produced in 2014 is divided by cost of input used in 2013, to produce output in 2014 to calculate |
| A. | benchmark engineered productivity |
| B. | benchmark total factor productivity |
| C. | benchmark partial productivity |
| D. | benchmark total productivity |
| Answer» C. benchmark partial productivity | |
| 47. |
The quantity of produced output is divided by quantity of used input to calculate |
| A. | targeted productivity |
| B. | total factor productivity |
| C. | partial productivity |
| D. | unused productivity |
| Answer» D. unused productivity | |
| 48. |
In operating income strategic analysis, the strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as |
| A. | internal process component |
| B. | growth component |
| C. | price recovery component |
| D. | productivity component |
| Answer» D. productivity component | |
| 49. |
If the quantity of manufactured jackets is 2250000 units and the leather used to produce the output is 3500000 m², then direct partial productivity of material will be |
| A. | 0.642 unit of jacket per ² of leather |
| B. | 0.342 unit of jacket per ² of leather |
| C. | 0.442 unit of jacket per ² of leather |
| D. | 0.542 unit of jacket per ² of leather |
| Answer» B. 0.342 unit of jacket per ² of leather | |
| 50. |
An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called |
| A. | inelastic demand |
| B. | product differentiation |
| C. | cost leadership |
| D. | elastic demand |
| Answer» C. cost leadership | |