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. |
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 | |
| 2. |
…………….forms part of cost of production. |
| A. | Abnormal waste |
| B. | normal waste |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 3. |
Under Merrick’s multiple piece rate system, 110% 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» B. 100% and 120% | |
| 4. |
Telephone expense is …………….expense. |
| A. | Variable |
| B. | semi-variable |
| C. | fixed |
| D. | none of these |
| Answer» C. fixed | |
| 5. |
The type of standard best suitable for cost control purpose is |
| A. | Basic standard |
| B. | Ideal standard |
| C. | Normal standard |
| D. | Expected standard |
| Answer» E. | |
| 6. |
A bill of material is prepared in case of a …………………job |
| A. | Standard job |
| B. | non-standardized job |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 7. |
Average cost method of valuing material issues is suitablewhen…………. |
| A. | Prices rise |
| B. | prices fall |
| C. | prices fluctuate considerably |
| D. | none of these |
| Answer» D. none of these | |
| 8. |
…………………budget is designed to remain unchanged irrespective ofthe volume of output or turnover attained. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» C. Flexible | |
| 9. |
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% | |
| 10. |
Where the work is undertaken to Customers’ special requirements andeach order is of comparatively short-duration, it is called…………..costing. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» B. batch | |
| 11. |
Cost Accountancy is the science, art and ……………….of a costaccountant. |
| A. | Practice |
| B. | exercise |
| C. | hard work |
| D. | effort |
| Answer» B. exercise | |
| 12. |
Fixed cost per unit …………………… with rise in output and ……………with fall in output. |
| A. | Decreases, increases |
| B. | increases, decreases |
| C. | is constant, remains same |
| D. | none of the above |
| Answer» B. increases, decreases | |
| 13. |
The process costing is not used in one of the following. |
| A. | Chemical |
| B. | textiles |
| C. | cement |
| D. | oil refining |
| Answer» D. oil refining | |
| 14. |
Re-ordering level = ……………………. X Maximum re-order period |
| A. | Average re-order period |
| B. | Maximum usage |
| C. | Maximum consumption |
| D. | Normal usage |
| Answer» D. Normal usage | |
| 15. |
Bin card is maintained by the……………. |
| A. | Cost accountant |
| B. | Clerk |
| C. | storekeeper |
| D. | branch accountant |
| Answer» D. branch accountant | |
| 16. |
Each job has a ………….. prepared for it that bears the job numberand which 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 | |
| 17. |
…………………budget is the most important budget and it forms thebasis on which all the other budgets are built up. |
| A. | Production |
| B. | material |
| C. | cash budget |
| D. | sales |
| Answer» E. | |
| 18. |
An unfavourable material price variance occurs because of: |
| A. | Price increase in raw materials |
| B. | Price decrease in raw materials |
| C. | Less than anticipated normal wastage in the manufacturing process |
| D. | More than anticipated normal wastage in the manufacturing process |
| Answer» B. Price decrease in raw materials | |
| 19. |
Specific price method of valuing material issue is used when…………. |
| A. | Materials are purchased for specific job or work order |
| B. | materials are subject to natural wastage |
| C. | prices fluctuate |
| D. | none of these |
| Answer» B. materials are subject to natural wastage | |
| 20. |
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 | |
| 21. |
Total Labour cost variance = |
| A. | Standard cost of labour - actual cost of labour |
| B. | Standard rate(standard time for actual output-actual time worked) |
| C. | Standard rate (standard time for actual output- actual time paid for) |
| D. | Actual time taken (standard rate-actual rate) |
| Answer» B. Standard rate(standard time for actual output-actual time worked) | |
| 22. |
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 | |
| 23. |
Total Material cost variance = |
| A. | Standard cost of materials-actual cost of materials |
| B. | Budgeted cost of materials- actual cost of materials |
| C. | Standard cost of materials-budgeted cost of materials |
| D. | Actual cost of materials- budgeted cost of materials |
| Answer» B. Budgeted cost of materials- actual cost of materials | |
| 24. |
Re-ordering level = Maximum consumption x ………………………… |
| A. | Average re-order period |
| B. | Maximum usage |
| C. | Maximum re-order period |
| D. | Normal usage |
| Answer» D. Normal usage | |
| 25. |
The ……………costing is applied when a quantity of similar andidentical products are manufactured together as one Job. |
| A. | Job |
| B. | Batch |
| C. | operation |
| D. | output |
| Answer» C. operation | |
| 26. |
………………….aids in price fixation. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» C. management accounting | |
| 27. |
Stock Adjustment Account is debited with ……….and credited with ……….. |
| A. | Surplus, shortage of stock |
| B. | shortage of stock, surplus |
| C. | excess, loss |
| D. | none of these |
| Answer» C. excess, loss | |
| 28. |
Qualities demanded from the job holder is technically known as …………………… |
| A. | Job description |
| B. | job specifications |
| C. | job evaluation |
| D. | both a & b |
| Answer» C. job evaluation | |
| 29. |
Cost accounting provides data for managerial……………. |
| A. | Decision making |
| B. | recruitment |
| C. | retrenchment |
| D. | none of the above. |
| Answer» B. recruitment | |
| 30. |
Standards set provide yardsticks against which………….are compared. |
| A. | Budgeted costs |
| B. | Estimated costs |
| C. | Actual costs |
| D. | None of these |
| Answer» D. None of these | |
| 31. |
When 1000 units are 60% complete in a process, it is equivalent to…………….completed units. |
| A. | 60 |
| B. | 600 |
| C. | 6000 |
| D. | 1000 |
| Answer» C. 6000 | |
| 32. |
Variable costs change ……………………with change in output. |
| A. | Proportionately |
| B. | Inversely |
| C. | Disproportionately |
| D. | Sometimes |
| Answer» B. Inversely | |
| 33. |
The method of costing used in a refinery is……………..costing. |
| A. | Process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 34. |
…………….. is the assessment of the relative worth of jobs withina company whereas ………….is the assessment of the relative worth of man behind the job. |
| A. | Job evaluation , merit rating |
| B. | job analysis, job evaluation |
| C. | job analysis, merit rating |
| D. | none of these |
| Answer» B. job analysis, job evaluation | |
| 35. |
Capacity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» C. Standard hours for actual production x 100 Actual hours worked | |
| 36. |
Budgeting system……………key managerial functions. |
| A. | Dismisses |
| B. | integrates |
| C. | discharges |
| D. | none of these |
| Answer» C. discharges | |
| 37. |
Depreciation is…………………expenditure. |
| A. | fixed |
| B. | variable |
| C. | adjustable |
| D. | Semi-variable |
| Answer» E. | |
| 38. |
Service costing is called as ………………. |
| A. | Operation costing |
| B. | Operating costing |
| C. | multiple costing |
| D. | none of these |
| Answer» C. multiple costing | |
| 39. |
Fancy packing is an example of ………….expenses. |
| A. | Selling |
| B. | Distribution |
| C. | administration |
| D. | factory |
| Answer» B. Distribution | |
| 40. |
The deviation of the actual cost or profit or sales from the standardcost or profit or sale is known as ………… |
| A. | Difference |
| B. | Variance |
| C. | Discrepancy |
| D. | Inconsistency |
| Answer» C. Discrepancy | |
| 41. |
In automobile, …………………costing is used |
| A. | Process |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» D. job | |
| 42. |
Cost accounting disclose ……………. |
| A. | The Financial position |
| B. | profit/loss of a product, job or service |
| C. | effect and impact of cost on business |
| D. | none of these |
| Answer» C. effect and impact of cost on business | |
| 43. |
……………..includes financial and cost accounting, tax planning and taxaccounting. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» D. none of these | |
| 44. |
Formula of calculation of wages under Halsey Premium System is…… |
| A. | R + %(S-T)R |
| B. | T x R+ % (S-T) R |
| C. | S-T x T x R S |
| D. | R x S x T |
| Answer» C. S-T x T x R S | |
| 45. |
The total variable cost …………………… in total proportion to output. |
| A. | Increases |
| B. | does not increase |
| C. | decreases |
| D. | none of these. |
| Answer» B. does not increase | |
| 46. |
…………..cost is irrecoverable cost. |
| A. | marginal |
| B. | out of pocket |
| C. | Sunk |
| D. | none of these |
| Answer» D. none of these | |
| 47. |
……………………are costs which have been applied against revenue ofparticular accounting period. |
| A. | Expenses |
| B. | income |
| C. | loss |
| D. | none of these |
| Answer» B. income | |
| 48. |
An input of 5000kg of material introduced into the process and theexpected loss is 8% and if the actual output from the process is 4300, the abnormal loss is …………kg |
| A. | 400 |
| B. | 300 |
| C. | 500 |
| D. | 600 |
| Answer» C. 500 | |
| 49. |
………..is a post mortem of past costs. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | both a & b |
| D. | none of these |
| Answer» B. cost accounting | |
| 50. |
Credit and collection cost is an item of |
| A. | Selling overhead |
| B. | office overhead |
| C. | prime cost |
| D. | administrative overhead |
| Answer» B. office overhead | |