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. |
Machine hour rate is obtained by dividing the total running expensesof a machine during a particular period by the………… |
| A. | Number of hours |
| B. | number of products produced |
| C. | number of workers |
| D. | wages |
| Answer» B. number of products produced | |
| 2. |
Material price variance is the difference between standard and actualprices of materials used multiplied by……………….. |
| A. | Actual quantity of materials used |
| B. | Budgeted quantity of materials used |
| C. | Standard quantity of materials used |
| D. | Either a or b |
| Answer» B. Budgeted quantity of materials used | |
| 3. |
Material control does not cover the following stage. |
| A. | Purchase of materials |
| B. | storing of materials |
| C. | issue of materials |
| D. | production |
| Answer» E. | |
| 4. |
Standard cost is a …………..cost |
| A. | Predetermined |
| B. | historical |
| C. | actual |
| D. | final |
| Answer» B. historical | |
| 5. |
Material abstract is also known as ……………… |
| A. | Material issue analysis sheet |
| B. | bill of materials |
| C. | stores ledger |
| D. | none of the above |
| Answer» B. bill of materials | |
| 6. |
Stock verification sheets are maintained to record the results of……… |
| A. | Physical verification |
| B. | financial control |
| C. | financial verification |
| D. | quality verification |
| Answer» B. financial control | |
| 7. |
Cost accounting provides detailed information about …………………ofvarious products, processes, services and operations. |
| A. | Costs |
| B. | income |
| C. | either a or b |
| D. | none of these. |
| Answer» B. income | |
| 8. |
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 | |
| 9. |
Management by exception is exercising control over……….. |
| A. | Costs |
| B. | Favourable items |
| C. | Unfavourable items |
| D. | all of these |
| Answer» D. all of these | |
| 10. |
Average unit cost for each process is calculated by dividing the………………..by………………… |
| A. | Total cost, number of units |
| B. | total process cost, number of units in process |
| C. | Total process cost, number of finished goods |
| D. | total cost, number of units produced |
| Answer» C. Total process cost, number of finished goods | |
| 11. |
Out of pocket costs involve payment to ………………… |
| A. | Outsiders |
| B. | self |
| C. | employees |
| D. | none of the above |
| Answer» B. self | |
| 12. |
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 | |
| 13. |
…………..process loss should be transferred to costing profit & lossaccount. |
| A. | Abnormal |
| B. | normal |
| C. | both a& b |
| D. | none of these |
| Answer» B. normal | |
| 14. |
An opportunity cost does not involve………… |
| A. | Cash outlays |
| B. | direct cost |
| C. | indirect cost |
| D. | none of the above |
| Answer» B. direct cost | |
| 15. |
……………….costing is used in transport undertakings. |
| A. | Process |
| B. | service |
| C. | multiple |
| D. | job |
| Answer» C. multiple | |
| 16. |
Material Usage Variance=Material Mix Variance +………….. |
| A. | Material Yield Variance |
| B. | Material cost variance |
| C. | Material price variance |
| D. | Material quantity variance |
| Answer» B. Material cost variance | |
| 17. |
Such expenses which are included (even though they are not incurred)for taking managerial decisions are called……………… |
| A. | Notional expenses |
| B. | actual expenses |
| C. | imputed |
| D. | none of these |
| Answer» B. actual expenses | |
| 18. |
In process costing, the abnormal loss is treated as ……….cost andwritten off to profit & loss account. |
| A. | Unit |
| B. | period |
| C. | future |
| D. | process |
| Answer» C. future | |
| 19. |
Sales budget is a |
| A. | Functional budget |
| B. | Master budget |
| C. | Expenditure budget |
| D. | none of these |
| Answer» B. Master budget | |
| 20. |
Warehousing cost is an item of |
| A. | Office overhead |
| B. | distribution overhead |
| C. | material cost |
| D. | works overhead |
| Answer» C. material cost | |
| 21. |
……………….is a summary of all function budgets in a Capsule form. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» B. Sales budget | |
| 22. |
…………………budget is the preparation of budget starting from aclean state. |
| A. | Performance |
| B. | Zero Base |
| C. | Cash |
| D. | none of these |
| Answer» C. Cash | |
| 23. |
Maintenance charges are in the nature of …………………expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | none of these |
| Answer» D. none of these | |
| 24. |
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 | |
| 25. |
The scope of cost accounting include…………..,…………… and…………… |
| A. | Cost ascertainment, cost presentation, cost control |
| B. | tax planning, tax accounting, financial accounting |
| C. | presentation of accounting information, creation of policy, day-to day operation |
| D. | none of the above |
| Answer» B. tax planning, tax accounting, financial accounting | |
| 26. |
Stores Ledger is maintained in the………………… |
| A. | Store |
| B. | finance department |
| C. | cost accounting department |
| D. | Both a & b |
| Answer» D. Both a & b | |
| 27. |
Period costs charged to………………. |
| A. | cost of production |
| B. | Products |
| C. | Period |
| D. | none of these |
| Answer» D. none of these | |
| 28. |
………….is a technique of material cost control which leads to lowcarrying cost as a result of low investment in inventory |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» C. VED Analysis | |
| 29. |
Idle time variance is…………. |
| A. | Idle time x actual labour |
| B. | Idle time x standard rate |
| C. | Idle time x budgeted labour rate |
| D. | Idle time x historical cost |
| Answer» C. Idle time x budgeted labour rate | |
| 30. |
Inventory turnover ratio = Cost of inventory consumed during theperiod ÷ Cost of ……………………held during the period |
| A. | Average inventory |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» B. minimum inventory | |
| 31. |
Process costing is also known as……………….costing. |
| A. | Continuous |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 32. |
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 | |
| 33. |
Abnormal cost is ………………….. |
| A. | Uncontrollable |
| B. | controllable |
| C. | fixed |
| D. | none of these |
| Answer» B. controllable | |
| 34. |
Three types of standards are………….. |
| A. | Current standard, basic standard and normal standard |
| B. | Currency standard, basel standard and actual standard |
| C. | Actual standard, estimated standard and expected standard |
| D. | Expected standard, ideal standard and current standard |
| Answer» B. Currency standard, basel standard and actual standard | |
| 35. |
In …………………..each job is a cost unit to which all costs areassigned. |
| A. | Batch costing |
| B. | Job costing |
| C. | process costing |
| D. | operation costing |
| Answer» C. process costing | |
| 36. |
………………does not form part of production. |
| A. | Abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» B. normal waste | |
| 37. |
Salary paid to general manager is an item of……………………expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | estimated |
| Answer» B. Variable | |
| 38. |
Material control aims at achieving effective………… |
| A. | Material management |
| B. | quality control |
| C. | accounting of material |
| D. | material supply |
| Answer» B. quality control | |
| 39. |
………………….is concerned with discovery of facts concerning a joband ……………….is concerned with ascertaining the money value of a job. |
| A. | Job description, job evaluation |
| B. | job specifications, job evaluation |
| C. | job analysis, job evaluation |
| D. | none of these |
| Answer» D. none of these | |
| 40. |
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 | |
| 41. |
…………………..costing is applicable to printers. |
| A. | Process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» E. | |
| 42. |
When actual loss is less than the estimated loss, the differencebetween the two is considered to be…………… |
| A. | Abnormal gain |
| B. | abnormal loss |
| C. | normal loss |
| D. | income |
| Answer» B. abnormal loss | |
| 43. |
Under Merrick’s multiple piece rate system, ordinary piece rate isgiven to workers whose level of performance is between……………….of the standard output. |
| A. | 0% and 100% |
| B. | 0% and 120% |
| C. | 0% and 83% |
| D. | none of these |
| Answer» D. none of these | |
| 44. |
The ordinary trading account is a locked storehouse of most valuableinformation to which cost system is the………………. |
| A. | Key |
| B. | lock |
| C. | house |
| D. | none of these |
| Answer» B. lock | |
| 45. |
Boiler house costing is an example of …………….costing |
| A. | Operation |
| B. | process |
| C. | service |
| D. | none of these |
| Answer» D. none of these | |
| 46. |
……………….is the consolidated summary of the various functionalbudgets. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» B. Sales budget | |
| 47. |
In the case of plant, the limiting factor may be: |
| A. | Insufficient capacity |
| B. | shortage of experienced salesmen |
| C. | general shortage of power |
| D. | shortage of materials |
| Answer» B. shortage of experienced salesmen | |
| 48. |
……………….is the smallest segment of activity or area orresponsibility for which costs are accumulated. |
| A. | Cost Object |
| B. | Cost centre |
| C. | cost driver |
| D. | none of the above |
| Answer» C. cost driver | |
| 49. |
Material losses due to abnormal reasons should be transferredto………………… |
| A. | Profit and loss account |
| B. | Costing Profit and Loss Account |
| C. | Trading Account |
| D. | none of these |
| Answer» C. Trading Account | |
| 50. |
Last in first out method is suitable in times of……………… |
| A. | Rising prices |
| B. | falling prices |
| C. | fluctuating prices |
| D. | none of these |
| Answer» B. falling prices | |