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 costing is applied when a quantity of similar and identical products are manufactured together as one Job. |
| A. | Job |
| B. | Batch |
| C. | operation |
| D. | output |
| Answer» C. operation | |
| 2. |
..includes financial and cost accounting, tax planning and tax accounting. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» D. none of these | |
| 3. |
Cost Accounting has been developed becauseof of Financial Accounting. |
| A. | Limitations |
| B. | advantages |
| C. | both a & b |
| D. | none of these |
| Answer» B. advantages | |
| 4. |
Cost accounting has developed due to the ___________ of financial accounting |
| A. | Advantages |
| B. | Limitations |
| C. | Merits |
| D. | Expansion |
| Answer» C. Merits | |
| 5. |
Printing industry uses: |
| A. | Job costing |
| B. | Batch costing |
| C. | Operation costing |
| D. | Output costing |
| Answer» C. Operation costing | |
| 6. |
Cost Accounting serves the information needs of |
| A. | shareholders |
| B. | creditors |
| C. | management |
| D. | none of the above |
| Answer» D. none of the above | |
| 7. |
In costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year: |
| A. | Multiple |
| B. | Process |
| C. | Operation |
| D. | single. |
| Answer» D. single. | |
| 8. |
An opportunity cost is |
| A. | the advantage forgone |
| B. | the disadvantage forgone |
| C. | the estimated cost |
| D. | none of the above |
| Answer» B. the disadvantage forgone | |
| 9. |
The bases of apportionment for electric power is |
| A. | Number of machine hours |
| B. | Floor area |
| C. | Direct labour hours |
| D. | Number of workers |
| Answer» B. Floor area | |
| 10. |
Economic order quantity is: |
| A. | The maximum quantity |
| B. | The minimum quantity |
| C. | The most economic order quantity |
| D. | None of the above |
| Answer» D. None of the above | |
| 11. |
Economic order quantity is a tool for controlling ___________ |
| A. | Inventory |
| B. | Price |
| C. | Machinery |
| D. | Cost |
| Answer» B. Price | |
| 12. |
Which method is adopted to calculate the cost of each batch? |
| A. | Contract Costing |
| B. | Job Costing |
| C. | Batch Costing |
| D. | Job sheet |
| Answer» D. Job sheet | |
| 13. |
Cost accountancy is considered an art because it _____ |
| A. | Has systematic body of knowledge |
| B. | requires necessary ability and skills |
| C. | involves continuous efforts of cost accountant |
| D. | None of the above |
| Answer» C. involves continuous efforts of cost accountant | |
| 14. |
Personal cause of labour turnover is: |
| A. | Unfair method of promotion |
| B. | Dislike for the job or place |
| C. | Unsatisfactory working conditions |
| D. | None of the above |
| Answer» C. Unsatisfactory working conditions | |
| 15. |
This is one of the avoidable causes of labour turnover. |
| A. | Accident |
| B. | Poor Health |
| C. | Labour Relation |
| D. | Retirement |
| Answer» D. Retirement | |
| 16. |
Labour turnover represents |
| A. | The strength of labour in a firm |
| B. | The change in the labour force |
| C. | The efficiency of the labour force |
| D. | The cost of the labour incurred |
| Answer» C. The efficiency of the labour force | |
| 17. |
. Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing. |
| A. | Financial |
| B. | Cost |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 18. |
The cost per unit that increases or decreases when the volume of output decreases or increases is known as |
| A. | semi-variable cost |
| B. | fixed cost |
| C. | variable cost |
| D. | marginal cost |
| Answer» D. marginal cost | |
| 19. |
An automobile service unit uses: |
| A. | Batch costing |
| B. | Contract costing |
| C. | Job |
| D. | Specific order |
| Answer» C. Job | |
| 20. |
Fixed cost in the same proportion in which output changes. |
| A. | does not change |
| B. | changes |
| C. | increases |
| D. | none of these. |
| Answer» B. changes | |
| 21. |
Power charges are: |
| A. | Fixed overhead |
| B. | Variable overhead |
| C. | Semi-variable overhead |
| D. | Semi-fixed overhead |
| Answer» C. Semi-variable overhead | |
| 22. |
In transport costing charges vary more or less in direct proportion to kilometers run. |
| A. | Running |
| B. | petrol |
| C. | drivers salary |
| D. | tax |
| Answer» B. petrol | |
| 23. |
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 | |
| 24. |
Batch costing is used for which type of product? |
| A. | Heterogeneous product |
| B. | By-product |
| C. | Homogeneous product |
| D. | All of the above |
| Answer» D. All of the above | |
| 25. |
Batch costing is applied in: |
| A. | Pharmaceutical industries |
| B. | Computer industries |
| C. | Toy making |
| D. | All of the above |
| Answer» E. | |
| 26. |
Salary paid to general manager is an item of expenses. |
| A. | Fixed |
| B. | Variable |
| C. | semi-variable |
| D. | estimated |
| Answer» B. Variable | |
| 27. |
Unavoidable cause of labour turnover is: |
| A. | Low wages |
| B. | Unsatisfactory working conditions |
| C. | Long hours of work |
| D. | Retrenchment due to shortage of work |
| Answer» E. | |
| 28. |
Costing is a technique of ascertaining: - |
| A. | Cost |
| B. | Profit |
| C. | Loss |
| D. | Standard |
| Answer» B. Profit | |
| 29. |
Costs incurred for the maintenance of inventory is called |
| A. | Carrying cost |
| B. | Ordering cost |
| C. | Period cost |
| D. | Explicit cost |
| Answer» B. Ordering cost | |
| 30. |
Which of the following costs is not a factory overhead expense? |
| A. | Indirect wages |
| B. | Depreciation of plant and machinery |
| C. | Audit fees |
| D. | Machine maintenance labour cost |
| Answer» D. Machine maintenance labour cost | |
| 31. |
Absorption costing charges: |
| A. | Only fixed cost |
| B. | Only variable cost |
| C. | Both variable and fixed |
| D. | Some part of fixed cost |
| Answer» D. Some part of fixed cost | |
| 32. |
Economic Batch Quantity is an important point to be determined in industries where costing is employed. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» C. operation | |
| 33. |
Loss which unavoidable on account of inherent nature of production processes is |
| A. | Abnormal loss |
| B. | Normal loss |
| C. | Process loss |
| D. | None of the above |
| Answer» C. Process loss | |
| 34. |
The deviation of the actual cost or profit or sales from the standard cost or profit or sale is known as |
| A. | Difference |
| B. | Variance |
| C. | Discrepancy |
| D. | Inconsistency |
| Answer» C. Discrepancy | |
| 35. |
Annual usage, 1,20,000.00, cost of placing 60.00 & annual carrying cost is 10% of the inventory value. The EOQ will be:- |
| A. | 12,000.00 |
| B. | 10,000.00 |
| C. | 8,000.00 |
| D. | 6,000.00 |
| Answer» B. 10,000.00 | |
| 36. |
Warehousing cost is an item of: - |
| A. | Office overhead |
| B. | Distribution overhead |
| C. | Material cost |
| D. | None of these |
| Answer» C. Material cost | |
| 37. |
Absorption costing is closely related to which of the following cost elements? |
| A. | Total Costs |
| B. | Overheads |
| C. | Prime Costs |
| D. | Direct labor |
| Answer» C. Prime Costs | |
| 38. |
Elements of cost are:- |
| A. | Direct materials |
| B. | Direct labors |
| C. | Overheads |
| D. | All of thesew |
| Answer» E. | |
| 39. |
Labour employed in time office and security office is an example of: |
| A. | Direct labour |
| B. | Indirect labour |
| C. | Indirect expenses |
| D. | Direct expenses |
| Answer» C. Indirect expenses | |
| 40. |
A contract account is a _______ account in nature. |
| A. | Real a/c |
| B. | Personal a/c |
| C. | Nominal a/c |
| D. | All of these |
| Answer» D. All of these | |
| 41. |
In what basis of work, the contractor is made payment? |
| A. | Certified Work |
| B. | Uncertified Work |
| C. | National Profit |
| D. | None of these |
| Answer» B. Uncertified Work | |
| 42. |
Cost accounting has been developed because of limitation in:- |
| A. | Financial a/c |
| B. | Management a/c |
| C. | Prime Cost |
| D. | None of these |
| Answer» B. Management a/c | |
| 43. |
Three elements of cost are: |
| A. | Direct Material, Direct Labour, Direct Expenses |
| B. | Manufacturing Overheads, Office Expenses, Selling Overheads |
| C. | Labour, Material, Other Expense |
| D. | Material, Labour, Overheads |
| Answer» D. Material, Labour, Overheads | |
| 44. |
Depreciation of office equipments is an example of: |
| A. | Factory overheads |
| B. | Administrative overheads |
| C. | Selling overheads |
| D. | Manufacturing overheads |
| Answer» C. Selling overheads | |
| 45. |
When the amount of overheads absorbed is less than the amount of overheads actually incurred. |
| A. | Over absorption |
| B. | Under Absorption |
| C. | Excess Absorption |
| D. | None of the above |
| Answer» C. Excess Absorption | |
| 46. |
Hypothetical costs which are specially computed outside the accounting system for the purpose of decision making are called |
| A. | Replacement Cost |
| B. | Imputed Cost |
| C. | Marginal Cost |
| D. | Future Cost |
| Answer» C. Marginal Cost | |
| 47. |
When the under or over absorbed amount is quite negligible, it is transferred to |
| A. | Costing P/L A/c |
| B. | Costing Expenditure A/c |
| C. | Costing Balance Sheet |
| D. | Costing trading A/c |
| Answer» B. Costing Expenditure A/c | |
| 48. |
In case the amount of under or over absorbed overheads is significant, this rate is calculated to adjust the amount in the cost. |
| A. | Additional rate |
| B. | Secondary rate |
| C. | Supplementary rate |
| D. | Primary rate |
| Answer» D. Primary rate | |
| 49. |
Payment on the basis of the work done irrespective of the time taken by the worker is called: |
| A. | Time rate system |
| B. | Premium plan |
| C. | Piece rate system |
| D. | Bonus plan |
| Answer» D. Bonus plan | |
| 50. |
The work done beyond the normal work period is called: - |
| A. | Idle time |
| B. | Overtime |
| C. | Normal time |
| D. | Standard time |
| Answer» C. Normal time | |