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. |
Under step method of re-apportionment of costs of service departments, the cost of last service department is apportioned only to the .. |
| A. | Production departments |
| B. | service departments |
| C. | both a & b |
| D. | none of these |
| Answer» B. service departments | |
| 2. |
..is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred. |
| A. | Over absorption of overheads |
| B. | under absorption of overheads |
| C. | overheads absorption |
| D. | none of these. |
| Answer» C. overheads absorption | |
| 3. |
.is the excess of overheads absorbed over the actual amount of overheads incurred. |
| A. | Over absorption of overheads |
| B. | under absorption of overheads |
| C. | overheads absorption |
| D. | none of these. |
| Answer» B. under absorption of overheads | |
| 4. |
Where the work is undertaken to Customers special requirements and each order is of comparatively short-duration, it is called ..costing. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» B. batch | |
| 5. |
Where the work is undertaken to customer s special requirements and each order is of comparatively short duration, then it is called: |
| A. | Job costing |
| B. | Batch costing |
| C. | Operation costing |
| D. | Output costing |
| Answer» B. Batch costing | |
| 6. |
These accounts are obligatory to be prepared according to the legal requirements of Companies Act and Income Tax Act. |
| A. | Cost Accounting |
| B. | Financial Accounting |
| C. | Management Accounting |
| D. | All of the above |
| Answer» C. Management Accounting | |
| 7. |
A Bill of Materials is ________ |
| A. | An invoice of materials purchased |
| B. | A voucher of materials received by supplier |
| C. | A document that shows all the materials required for a job |
| D. | None of these |
| Answer» D. None of these | |
| 8. |
It is a device for the purpose of breaking up cost into smaller sub-divisions:- |
| A. | Cost Unit |
| B. | Cost Control |
| C. | Cost center |
| D. | Prime cost |
| Answer» B. Cost Control | |
| 9. |
A container in which material is kept is known as |
| A. | Stores ledger |
| B. | Material return note |
| C. | Bin card |
| D. | None of the above |
| Answer» D. None of the above | |
| 10. |
Value of material consumed is: |
| A. | Opening stock of material + Closing stock of material |
| B. | Opening stock of material + Purchases of material Closing stock of material |
| C. | Average of opening and closing stock of material |
| D. | Purchase of material Closing stock of material |
| Answer» C. Average of opening and closing stock of material | |
| 11. |
represents that quantity of material which is normally ordered when a particular material reaches reordering level. |
| A. | maximum level |
| B. | re-order level |
| C. | minimum level |
| D. | Re-order quantity |
| Answer» E. | |
| 12. |
Inventory turnover ratio = Cost of inventory consumed during the period Cost of held during the period |
| A. | Average inventory |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» B. minimum inventory | |
| 13. |
The principle types of inventories are raw materials and , and finished goods |
| A. | Processed materials |
| B. | Goods-in-progress |
| C. | stored goods |
| D. | goods for dispatch |
| Answer» C. stored goods | |
| 14. |
is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» B. JIT Inventory System | |
| 15. |
.is a technique of material cost control which leads to low carrying 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 | |
| 16. |
obviates the necessity for the physical checking of all items of stores at the end of the year and thereby avoids dislocation of production. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» E. | |
| 17. |
An input of 5000kg of material introduced into the process and the expected 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 | |
| 18. |
When actual loss is than the estimated loss, the difference between the two is considered to be abnormal loss. |
| A. | More |
| B. | less |
| C. | both a & b) |
| D. | none of these |
| Answer» B. less | |
| 19. |
In process costing, the abnormal loss is treated as .cost and written off to profit & loss account. |
| A. | Unit |
| B. | period |
| C. | future |
| D. | process |
| Answer» C. future | |
| 20. |
When actual loss is ..than the estimated loss, the difference between the two is considered to be abnormal gain |
| A. | More |
| B. | less |
| C. | higher |
| D. | none of these |
| Answer» C. higher | |
| 21. |
..process loss should be transferred to costing profit & loss account. |
| A. | Abnormal |
| B. | normal |
| C. | both a& b |
| D. | none of these |
| Answer» B. normal | |
| 22. |
The per unit expense of the portion factory overhead varies with the volume of production while ..portion remains the same with volume. |
| A. | Fixed, variable |
| B. | variable, fixed |
| C. | variable, semi-variable |
| D. | none of these |
| Answer» B. variable, fixed | |
| 23. |
PP Ltd is preparing the production and material purchase budgets for one of their products,The SUPERX for the forthcoming year.The following information is available:Sales demand (units) 30000Material usage per unit 7 kgsEstimated opening inventory 3500 unitsRequired closing inventory 35% higher than opening inventoryHow many units of the SUPERX will need to be produced? |
| A. | 31225 |
| B. | 30000 |
| C. | 28775 |
| D. | 38225 |
| Answer» B. 30000 | |
| 24. |
The cost of labour which is directly engaged in production work and can be conveniently identified to a job, process or cost unit is |
| A. | Indirect labour cost |
| B. | Direct labour cost |
| C. | Total labour cost |
| D. | None of the above |
| Answer» C. Total labour cost | |
| 25. |
A material loss during production or storage due to evaporation or shrinkage is called: |
| A. | Scrap |
| B. | Waste |
| C. | Spoilage |
| D. | Material loss |
| Answer» C. Spoilage | |
| 26. |
The cost of ..process loss is absorbed in the cost of production of good units. |
| A. | Abnormal |
| B. | normal |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 27. |
ABC Ltd. has furnished the following information for 4,000 units of product for the year 2014-2015 :Particulars Rs.Direct materials 2,50,000Direct labour 2,00,000Manufacturing overheads 2,80,000 (40 % fixed)Selling and administrative overheads 2,70,000 (30 % fixed)The total cost of 4,380 unit is |
| A. | rs. 10,80,120 |
| B. | rs. 10,42,500 |
| C. | rs. 10,95,000 |
| D. | rs. 10,76,665 |
| Answer» E. | |
| 28. |
When factory overhead control account has an ending debit balance, factory overhead was |
| A. | Over applied |
| B. | under applied |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 29. |
Rent and other building expenses may be apportioned to various departments on the basis of |
| A. | Direct wages |
| B. | Number of workers |
| C. | Floor Area |
| D. | Cost of Plant |
| Answer» D. Cost of Plant | |
| 30. |
ABC Ltd. has prepared the cash budget for the year 2014-2015 and provided the following information pertaining to sales value :Month Rs.April 2014 2,50,000May 2014 2,80,000June 2014 3,20,000July 2014 3,50,00020% of the monthly sales are expected to be on cash basis. 60% of the credit sales are expected to be realised in the month following the month of sales and remaining 40% are expected to be realized in the second month following the month of sale.The estimated cash receipts in the month of June 2014 are: |
| A. | rs. 2,78,400 |
| B. | rs. 3,00,000 |
| C. | rs. 3,20,000 |
| D. | rs. 3,32,000 |
| Answer» B. rs. 3,00,000 | |
| 31. |
Labour cost variance is the difference between standard cost of labour and .. |
| A. | Budgeted cost of labour |
| B. | Estimated cost of labour |
| C. | Actual cost of labour |
| D. | None of these |
| Answer» D. None of these | |
| 32. |
When there are frequent changes in the labour force, labour turnover is said to be |
| A. | unstable |
| B. | high |
| C. | low |
| D. | stable |
| Answer» C. low | |
| 33. |
Which of the following is not direct labour: |
| A. | Assembly-line workers |
| B. | Machine operators |
| C. | Manual workers |
| D. | Time-keeper |
| Answer» E. | |
| 34. |
Direct material + Directlabour + direct expenses = |
| A. | Prime Cost |
| B. | Works Cost |
| C. | Cost of Production |
| D. | Total Cost |
| Answer» B. Works Cost | |
| 35. |
The budget relating to .must be prepared first and the other budgets should be prepared in the light of that factor. |
| A. | Limiting factor |
| B. | materials |
| C. | labour |
| D. | production |
| Answer» B. materials | |
| 36. |
Direct material is a____________- |
| A. | Manufacturing Cost |
| B. | Administrative Cost |
| C. | Selling Cost |
| D. | Distribution Cost |
| Answer» B. Administrative Cost | |
| 37. |
Overhead expenses can be classified according to |
| A. | Functions |
| B. | Elements |
| C. | Behavior |
| D. | All of the above |
| Answer» E. | |
| 38. |
When the amount of overhead absorbed is less than the amount of overhead incurred it is known as |
| A. | Over-absorption |
| B. | Under-absorption |
| C. | Allocation |
| D. | Apportionment |
| Answer» C. Allocation | |
| 39. |
Certain overhead costs cannot be directly charged to a department or cost centres. The process of distribution of such overhead costs to various departments is called |
| A. | Apportionment |
| B. | Absorption |
| C. | Allocation |
| D. | None of the above |
| Answer» B. Absorption | |
| 40. |
Classification of overheads into indirect material, indirect labour and indirect expenses come under: |
| A. | Functional classification |
| B. | Behaviour-wise classification |
| C. | Nature-wise classification |
| D. | Element-wise classification |
| Answer» E. | |
| 41. |
Which of the following is not direct material? |
| A. | Raw material |
| B. | Primary packing material |
| C. | Consumable stores |
| D. | Parts or components specifically purchased |
| Answer» D. Parts or components specifically purchased | |
| 42. |
Production Manager s salary is; |
| A. | Factory overhead |
| B. | Office overhead |
| C. | Selling and distribution overheads |
| D. | Administrative overhead |
| Answer» B. Office overhead | |
| 43. |
The cost unit for a cement industry is |
| A. | Kilogram |
| B. | Dozen |
| C. | Tonne |
| D. | Square foot |
| Answer» D. Square foot | |
| 44. |
What we prepare for each job that bears the job number and which is used to collect all cost data relating to job is: |
| A. | Job time sheet |
| B. | Job cost card |
| C. | Job ticket |
| D. | Job account |
| Answer» C. Job ticket | |
| 45. |
Each job has a ______ prepare for it that bears the job number and 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 | |
| 46. |
In ..each job is a cost unit to which all costs are assigned. |
| A. | Batch costing |
| B. | Job costing |
| C. | process costing |
| D. | operation costing |
| Answer» C. process costing | |
| 47. |
In ________ costing the cost of a group of products is ascertained. |
| A. | Process |
| B. | Job |
| C. | Batch |
| D. | Service |
| Answer» D. Service | |
| 48. |
Batch costing is a form of: |
| A. | Process costing |
| B. | Continuous process costing |
| C. | Specific order costing |
| D. | Operation costing |
| Answer» D. Operation costing | |
| 49. |
The method of costing applied in biscuit industries is .costing and in steel industry .costing. |
| A. | Job, process |
| B. | job, contract |
| C. | batch, multiple |
| D. | process, operation |
| Answer» B. job, contract | |
| 50. |
Contract costing is specialized system of job costing applies to _____ contracts. |
| A. | Short-term |
| B. | Medium-term |
| C. | Long-term |
| D. | Continuous process |
| Answer» D. Continuous process | |