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. |
……………….is a method of evaluating the job in terms of its moneyvalue. |
| A. | Job analysis |
| B. | Job evaluation |
| C. | work measurement |
| D. | Motion study |
| Answer» C. work measurement | |
| 2. |
The requirements of a particular job are known as …………………… |
| A. | Job description |
| B. | job specifications |
| C. | job evaluation |
| D. | both a & b |
| Answer» B. job specifications | |
| 3. |
Bin card is a record of ………….only. |
| A. | Cost |
| B. | value |
| C. | quantity |
| D. | expense |
| Answer» D. expense | |
| 4. |
Room/day is the cost unit used in………………… |
| A. | Hotels |
| B. | hospital |
| C. | schools |
| D. | none of these |
| Answer» B. hospital | |
| 5. |
When actual loss is ………………than the estimated loss, the differencebetween the two is considered to be abnormal loss. |
| A. | More |
| B. | less |
| C. | both a & b) |
| D. | none of these |
| Answer» B. less | |
| 6. |
Standard costing is more widely applied in…………………industries. |
| A. | Process and engineering |
| B. | jobbing industries |
| C. | construction industry |
| D. | all of these |
| Answer» B. jobbing industries | |
| 7. |
The sum of value of work certified and uncertified appearing in theContract Account is called …………….. |
| A. | Work in Progress |
| B. | Work in Process |
| C. | Work Completed |
| D. | Work done. |
| Answer» B. Work in Process | |
| 8. |
Basis of apportionment of crèche expenses is …………….. |
| A. | Number of employees |
| B. | number of female employees |
| C. | number of male employees |
| D. | both b&c |
| Answer» C. number of male employees | |
| 9. |
Material Costs of each job are determined from…………… |
| A. | Material requisition notes |
| B. | bill of materials |
| C. | both a & b |
| D. | none of these |
| Answer» D. none of these | |
| 10. |
Labour rate variance is computed by multiplying the |
| A. | Standard labour rate with the difference between standard labour hours and actual labour hours |
| B. | Actual labour hours with the difference between standard labour hours and actual labour hours |
| C. | Actual labour rate with the difference between standard labour rate and actual labour hours. |
| D. | None of the above |
| Answer» E. | |
| 11. |
Under step method of re-apportionment of costs of servicedepartments, 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 | |
| 12. |
Where actual loss in a process is less than the anticipated loss, thedifference between the two is considered to be ……………….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | abnormal gain |
| D. | normal gain |
| Answer» D. normal gain | |
| 13. |
……………………provides information for income determination. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» B. cost accounting | |
| 14. |
The total of all direct expenses is known as …………..cost. |
| A. | Prime |
| B. | Works |
| C. | Production |
| D. | both a & b |
| Answer» B. Works | |
| 15. |
In transportation costing a composite unit such as …………….is used. |
| A. | passenger mile/km or Ten kilometer |
| B. | per km |
| C. | per passenger |
| D. | per stop |
| Answer» B. per km | |
| 16. |
Contract costing is not used in one of the following industries. |
| A. | Ship building |
| B. | Civil Construction |
| C. | Automobiles |
| D. | Construction of Bridges |
| Answer» D. Construction of Bridges | |
| 17. |
Administration expenses are mostly………………. |
| A. | semi-variable |
| B. | variable |
| C. | fixed |
| D. | none of these. |
| Answer» D. none of these. | |
| 18. |
Cost accounts deal partly with facts and figures and partly with……… |
| A. | Estimates |
| B. | costs |
| C. | income |
| D. | revenue |
| Answer» B. costs | |
| 19. |
Defectives are that portion of production which can be ………………atsome extra cost of re-operation. |
| A. | Sold |
| B. | rectified |
| C. | purchased |
| D. | none of these |
| Answer» C. purchased | |
| 20. |
Cost centre and cost unit are…………………… |
| A. | not the same |
| B. | the same |
| C. | not related |
| D. | none of these |
| Answer» B. the same | |
| 21. |
………………………. is one which can be conveniently identified withand charged to a particular unit of cost. |
| A. | Direct cost |
| B. | Indirect cost |
| C. | Overhead |
| D. | none of these |
| Answer» B. Indirect cost | |
| 22. |
An item of cost that is direct for one business may be …………..foranother business. |
| A. | Important |
| B. | direct |
| C. | Indirect |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 23. |
…………………budget gives differentbudgeted costs for different levelsof activity. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» D. all of these | |
| 24. |
The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget: |
| A. | Includes only fixed costs, while a variable budget includes only variable costs. |
| B. | Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales. |
| C. | Cannot be changed after the period begins, while a variable budget can be changed after the period begins. |
| D. | Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity) |
| Answer» E. | |
| 25. |
Fixed cost …………………… in the same proportion in which outputchanges. |
| A. | does not change |
| B. | changes |
| C. | increases |
| D. | none of these. |
| Answer» B. changes | |
| 26. |
Cost accounting records both monetary and …………… units. |
| A. | Physical |
| B. | cost |
| C. | both a & b |
| D. | none of these. |
| Answer» B. cost | |
| 27. |
……………costs are partly fixed and partly variable in relation tooutput. |
| A. | Variable |
| B. | fixed |
| C. | Semi-variable |
| D. | both a & b |
| Answer» D. both a & b | |
| 28. |
Printers use ………………costing. |
| A. | Process |
| B. | Batch |
| C. | job |
| D. | contract |
| Answer» D. contract | |
| 29. |
Material usage variance = standard price(……………….) |
| A. | Standard usage-actual usage |
| B. | Standard unit price-actual unit price |
| C. | Standard quantity |
| D. | Actual quantity |
| Answer» B. Standard unit price-actual unit price | |
| 30. |
Fixed cost per unit …………………….with increase in output. |
| A. | decreases |
| B. | increases |
| C. | changes |
| D. | sometimes |
| Answer» B. increases | |
| 31. |
Under applied or over applied factory overhead should be |
| A. | Carried forward to next year |
| B. | shown as an extraordinary item |
| C. | apportioned among cost of goods sold and applicable to inventory |
| D. | written off |
| Answer» D. written off | |
| 32. |
…………………expenses are excluded from cost. |
| A. | Normal |
| B. | abnormal |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 33. |
When the actual loss is more than the estimated loss, the differencebetween the two is considered to be……….. |
| A. | Abnormal loss |
| B. | normal loss |
| C. | loss |
| D. | none of these |
| Answer» B. normal loss | |
| 34. |
…………………..is most suitable when quality of work is of primeimportance. |
| A. | Piece rate system |
| B. | time wage system |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 35. |
………………is the oldest branch of accounting. |
| A. | Financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» B. cost accounting | |
| 36. |
……………….budget gives an estimate of the anticipated receipts andpayment of cash during the budget period. |
| A. | Sales |
| B. | Production |
| C. | Cash |
| D. | Master |
| Answer» D. Master | |
| 37. |
……………..is an example of short-term budget |
| A. | Cash budget |
| B. | Capital expenditure budget |
| C. | Material budget |
| D. | Both a & c |
| Answer» E. | |
| 38. |
For a work order, standard time and time taken are 20 hours and 15hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be………………. |
| A. | 40 |
| B. | 37.50 |
| C. | 35 |
| D. | none of these |
| Answer» C. 35 | |
| 39. |
Material Price Variance = Actual Usage (……………) |
| A. | Standard price |
| B. | Standard unit price-actual unit price |
| C. | Actual price |
| D. | Standard usage |
| Answer» C. Actual price | |
| 40. |
Labour cost variance is the difference between standard cost of labourand……….. |
| A. | Budgeted cost of labour |
| B. | Estimated cost of labour |
| C. | Actual cost of labour |
| D. | None of these |
| Answer» D. None of these | |
| 41. |
………………… is the maximum possible alternative earning that mighthave been earned if the productive capacity is put to some alternative use. |
| A. | Opportunity |
| B. | incremental revenue |
| C. | alternative revenue |
| D. | none of these |
| Answer» B. incremental revenue | |
| 42. |
Material should be issued by the store keeper against………………. |
| A. | Material requisition |
| B. | bill of materials |
| C. | both a & b |
| D. | none of these |
| Answer» D. none of these | |
| 43. |
The budget which commonly takes the form of budgeted profit andloss account and balance sheet is |
| A. | cash budget |
| B. | master budget |
| C. | flexible budget |
| D. | fixed budget |
| Answer» C. flexible budget | |
| 44. |
……………..is the amount by which the absorbed overheads fall shortof 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 | |
| 45. |
………………is a technique of stock control which leads to saving oftime 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 | |
| 46. |
………………….budget may be classified into material cost budget,labour cost budget and overhead budget. |
| A. | Cost of Production |
| B. | purchase |
| C. | sales |
| D. | Cash |
| Answer» B. purchase | |
| 47. |
Service costing is used in industries producing……………… |
| A. | Products |
| B. | service |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 48. |
……………………….Accounting provides information for cost control. |
| A. | Financial |
| B. | Cost |
| C. | Human Resource |
| D. | none of these. |
| Answer» C. Human Resource | |
| 49. |
In time wage system, wages are paid according to the………………. |
| A. | Production |
| B. | time |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 50. |
The budget relating to ………….must be prepared first and the otherbudgets should be prepared in the light of that factor. |
| A. | Limiting factor |
| B. | materials |
| C. | labour |
| D. | production |
| Answer» B. materials | |