MCQOPTIONS
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MCQOPTIONS
This section includes 571 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Management Studies (BMS) knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
……………………is the most suitable method in a transport industry. |
| A. | Operation costing |
| B. | Service costing |
| C. | Process costing |
| D. | Job costing |
| Answer» C. Process costing | |
| 502. |
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 | |
| 503. |
An unfavourable material usage arises because of: |
| A. | Price increase in raw materials |
| B. | Price decrease in raw mateials |
| C. | Less than anticipated normal wastage in the manufacturing process |
| D. | More than anticipated normal wastage in the manufacturing process |
| Answer» E. | |
| 504. |
……………..determines the priorities of functional budget. |
| A. | Principal Budget Factor |
| B. | Limiting Factor |
| C. | both a & b |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 505. |
Under piece rate system of wage payment, payment is made accordingto the………………… |
| A. | Quantity of work done |
| B. | time |
| C. | both a&b |
| D. | none of these |
| Answer» B. time | |
| 506. |
………………..costing is a type or technique of costing. |
| A. | Marginal |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 507. |
……………….. is used primarily for control of spare parts. |
| A. | ABC Analysis |
| B. | JIT Inventory System |
| C. | VED Analysis |
| D. | Perpetual Inventory System |
| Answer» D. Perpetual Inventory System | |
| 508. |
Volume variance arises because of : |
| A. | Increase in overhead rate per hour |
| B. | Decrease in overhead rate per hour |
| C. | Increase or decrease in actual output as compared to the budgeted output. |
| D. | Difference in budgeted overheads and actual overheads. |
| Answer» D. Difference in budgeted overheads and actual overheads. | |
| 509. |
In ……………………costing where standardized goods or services resultfrom 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. | |
| 510. |
An automobile service unit uses ………………costing. |
| A. | specific order |
| B. | batch |
| C. | job |
| D. | contract |
| Answer» D. contract | |
| 511. |
…………………represents that quantity of material which is normallyordered when a particular material reaches reordering level. |
| A. | maximum level |
| B. | re-order level |
| C. | minimum level |
| D. | Re-order quantity |
| Answer» E. | |
| 512. |
Volume variance is divided into…………… |
| A. | Capacity variance, calendar variance andExpenditure variance |
| B. | Capacity variance, calendar variance and efficiency variance |
| C. | Capacity variance, expenditure variance and efficiency variance |
| D. | Calendar variance, expenditure variance and efficiency variance |
| Answer» C. Capacity variance, expenditure variance and efficiency variance | |
| 513. |
Which of the following statements is false ? |
| A. | the limitations of financial accounting have led to the origin and evolution of cost accounting |
| B. | financial accounts fail to give a product wise break up of profit or loss |
| C. | financial accounts helps to judge the efficiency or productivity of the concern |
| D. | cost accounting techniques helps the management in making decision or planning for future |
| Answer» D. cost accounting techniques helps the management in making decision or planning for future | |
| 514. |
Cost behaviour refers to |
| A. | how costs react to a change in the level of activity |
| B. | whether a cost is incurred in a manufacturing trading or service company |
| C. | classifying costs as either product or period costs |
| D. | whether a particular expense has been incurred honestly |
| Answer» B. whether a cost is incurred in a manufacturing trading or service company | |
| 515. |
Cost Accounting is directed towards the needs of |
| A. | government |
| B. | external users |
| C. | internal users |
| D. | shareholders |
| Answer» D. shareholders | |
| 516. |
Which of the following is not function of Cost Accounting |
| A. | cost ascertainment |
| B. | planning and control |
| C. | decision making |
| D. | external reporting |
| Answer» E. | |
| 517. |
Which of the following would not be considered a fixed cost |
| A. | rent |
| B. | depreciation |
| C. | cost of bottles use in the production of soft drinks |
| D. | property taxes |
| Answer» D. property taxes | |
| 518. |
Variable Cost per Unit |
| A. | varies when output varies |
| B. | remain constant |
| C. | increases when output increases |
| D. | decreases when output decreases |
| Answer» C. increases when output increases | |
| 519. |
An example of fixed cost is |
| A. | materials consumed |
| B. | depreciation |
| C. | factory power |
| D. | packing material |
| Answer» C. factory power | |
| 520. |
Which of the following is not an example of variable cost |
| A. | straight line depreciation on a machine expected to last five years |
| B. | piece-rate wages paid to manufacturing workers |
| C. | wood used to make furniture |
| D. | commissions paid to sales personnel |
| Answer» B. piece-rate wages paid to manufacturing workers | |
| 521. |
Which of the following costs will vary directly with the level of production |
| A. | total manufacturing costs |
| B. | total cost of sales |
| C. | variable selling costs |
| D. | variable product costs |
| Answer» E. | |
| 522. |
In Entry under Integrated System for Cash purchase of Special Materials for direct use in a Job, ____________ account is debited. |
| A. | general ledger adjustment |
| B. | stores ledger control |
| C. | cost ledger control account |
| D. | work-in-progress |
| Answer» E. | |
| 523. |
In Entry under Integrated System for Cash purchase of materials for stock, ____________ account is debited. |
| A. | general ledger adjustment |
| B. | none of the mentioned |
| C. | none of the above |
| D. | stores ledger control |
| Answer» E. | |
| 524. |
In Entry under Integrated System for Credit purchase of material for stock, Stores Ledger Control is ____________. |
| A. | non impacted |
| B. | increased |
| C. | debited |
| D. | credited |
| Answer» D. credited | |
| 525. |
____________ Accounts is the name given to a system whereby cost and financial accounts are kept in the same set of books. |
| A. | non-integrated |
| B. | finalize |
| C. | cost |
| D. | integrated |
| Answer» E. | |
| 526. |
Under integral system, the accounting entry for recording depreciation charges on machinery will be |
| A. | machinery a/c dr factory overhead control a/c cr |
| B. | factory overhead control a/c dr machinery a/c cr |
| C. | depreciation a/c dr machinery a/c cr |
| D. | factory overhead control a/c dr cost ledger control a/c cr |
| Answer» C. depreciation a/c dr machinery a/c cr | |
| 527. |
The accounting entry is integrated accounts for recording sales will be |
| A. | debtors or cash a/c dr p&l a/c cr |
| B. | debtors or cash a/c dr sales a/c cr |
| C. | sales a/c dr p&l a/c cr |
| D. | cost ledger control a/c dr p&l a/c cr |
| Answer» C. sales a/c dr p&l a/c cr | |
| 528. |
Integral accounts eliminate the necessity of operating |
| A. | overhead adjustment account |
| B. | stores ledger control account |
| C. | all of these |
| D. | cost ledger control account |
| Answer» E. | |
| 529. |
What will be the accounting entry in integrated accounts for absorption of works overheads? |
| A. | factory overhead a/c dr wip a/c cr |
| B. | factory overhead a/c dr factory overhead control a/c cr |
| C. | wip control a/c dr factory overhead control a/c cr |
| D. | no entry required |
| Answer» D. no entry required | |
| 530. |
What accounting entry under integrated system will be passed for payment to creditors for supplies made? |
| A. | creditors a/c dr to cash a/c cr |
| B. | creditors a/c dr to stores ledger control a/c cr |
| C. | no entry required |
| D. | stores ledger a/c dr to cash a/c cr |
| Answer» B. creditors a/c dr to stores ledger control a/c cr | |
| 531. |
Payment of wages Rs. 5,000. Under Integrated Accounts, the transaction will appear as |
| A. | wages a/c dr 5,000 to cash/bank a/c cr 5,000 |
| B. | wages control a/c dr 5,000 to general ledger adjustment a/c cr 5,000 |
| C. | wages control a/c dr 5,000 to cash/bank a/c cr 5,000 |
| D. | cost ledger control a/c dr 5,000 to general ledger adjustment a/c cr 5,000 |
| Answer» C. wages control a/c dr 5,000 to cash/bank a/c cr 5,000 | |
| 532. |
Purchase of raw materials of Rs. 1,000 on credit. Under Integrated Accounts, the transaction will appear as |
| A. | cost ledger control a/c dr 1,000 to creditors a/c cr 1,000 |
| B. | store ledger control a/c dr 1,000 to creditors a/c cr 1,000 |
| C. | purchases a/c dr 1,000 to creditors a/c cr 1,000 |
| D. | store ledger control a/c dr 1,000 to general ledger adjustment a/c cr 1,000 |
| Answer» C. purchases a/c dr 1,000 to creditors a/c cr 1,000 | |
| 533. |
Entry under Integrated system for : Transfer of goods completed from production to finished goods |
| A. | wip a/c dr finished goods control a/c cr |
| B. | wip control a/c dr finished goods a/c cr |
| C. | finished goods control a/c dr wip a/c cr |
| D. | no entry |
| Answer» D. no entry | |
| 534. |
Entry under Integrated system for : Materials returned to supplier from stock |
| A. | creditors a/c dr store control a/c cr |
| B. | cost ledger control a/c dr stores control a/c cr |
| C. | cost ledger control a/c dr purchases a/c cr |
| D. | sundry creditors a/c dr purchases a/c cr |
| Answer» B. cost ledger control a/c dr stores control a/c cr | |
| 535. |
Entry under Integrated system for : Purchases of Direct Materials for production |
| A. | factory overhead control a/c dr store control a/c cr |
| B. | wip control a/c dr store control a/c cr |
| C. | wip control a/c dr store control a/c cr |
| D. | no entry |
| Answer» B. wip control a/c dr store control a/c cr | |
| 536. |
Entry under Integrated system for : Issues of Direct Materials for production |
| A. | wip control a/c dr store control a/c cr |
| B. | factory overhead control a/c dr store control a/c cr |
| C. | wip control a/c dr store control a/c cr |
| D. | no entry |
| Answer» D. no entry | |
| 537. |
Entry under Integrated System for : Cash purchase of special materials for direct use in a job |
| A. | work in progress a/c dr cash a/c cr |
| B. | purchases a/c dr cost ledger control cr |
| C. | purchases a/c dr cash a/c cr |
| D. | wip control a/c dr cost ledger a/c cr |
| Answer» B. purchases a/c dr cost ledger control cr | |
| 538. |
Entry under Integrated System for : Cash purchase of materials for stock |
| A. | store ledger control a/cdr general ledger adjustment a/c cr |
| B. | purchases a/c dr cash a/c cr |
| C. | store control a/c dr cash a/c cr |
| D. | general ledger adjustment a/c dr cash a/c cr |
| Answer» D. general ledger adjustment a/c dr cash a/c cr | |
| 539. |
Entry under Integrated System for : Credit purchase of materials for stock |
| A. | stores ledger a/c dr general ledger adjustment a/c cr |
| B. | stores ledger a/c dr creditors a/c cr |
| C. | purchases a/c dr general ledger adjustment a/c cr |
| D. | purchases a/c dr sundry creditors a/c cr |
| Answer» C. purchases a/c dr general ledger adjustment a/c cr | |
| 540. |
The double entry for factory cost of production in a cost ledger is |
| A. | costing p&l a/c dr finished goods control a/c cr |
| B. | cost of sales a/c dr finished goods control a/c cr |
| C. | wip control a/c dr finished goods control a/c cr |
| D. | finished goods control a/c dr wip control a/c cr |
| Answer» E. | |
| 541. |
At the end of a financial period, accounting entries for under absorbed overheads would be |
| A. | overhead control a/c dr p&l a/c cr |
| B. | wip control a/c dr overhead control a/c cr |
| C. | p&l a/c dr wip control a/c cr |
| D. | p&l a/c dr overhead control a/c cr |
| Answer» E. | |
| 542. |
In an integrated accounting system the accounting entries for factory overhead absorbed would be : |
| A. | cost of sales a/c dr overhead control a/c cr |
| B. | overhead control a/c dr wip control a/c cr |
| C. | overhead control a/c dr cost of sales a/c cr |
| D. | wip control a/c dr overhead control a/c cr |
| Answer» E. | |
| 543. |
In a period Rs. 50,000 was incurred on indirect labour. In a Cost Ledger, the double entry will be: |
| A. | wages control a/c dr overhead control a/c cr |
| B. | overhead control a/c dr wages control a/c cr |
| C. | wip control a/c dr wages control a/c cr |
| D. | wages control a/c dr wip control a/c cr |
| Answer» C. wip control a/c dr wages control a/c cr | |
| 544. |
Notional costs |
| A. | none of the above |
| B. | may be included in interlocking accounts |
| C. | cannot be included in interlocking accounts |
| D. | may be integrated accounts |
| Answer» C. cannot be included in interlocking accounts | |
| 545. |
Under integrated system of Accounting , issue of raw material is debited to which account? |
| A. | purchase account |
| B. | work in progress control account |
| C. | stores ledger control account/raw material control account |
| D. | none of the above |
| Answer» C. stores ledger control account/raw material control account | |
| 546. |
The following details have been extracted from the debtors collection records of X limited: Invoices paid in the month after sale 60% Invoices pain in the second month after sale 20% Invoices paid in the third month after sale 15% Bad debts 5% Credit sales for June to August 2014 or budgeted as follows: June Rs. 1,00,000 July Rs. 1,50,000 August Rs. 1,30,000 customers pain in the month after sale are entitled to deduct a 2% cash discount. Invoices are issued on the last day of the month. The amount budgeted to be received in September 2014 from credit sales is |
| A. | rs. 1,16,750 |
| B. | rs. 1,15,190 |
| C. | rs. 1,23,000 |
| D. | rs. 1,21,440 |
| Answer» E. | |
| 547. |
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 2,50,000 May 2014 2,80,000 June 2014 3,20,000 July 2014 3,50,000 20% 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 | |
| 548. |
Under integrated system of Accounting , purchase of raw material is debited to which account? |
| A. | work in progress control account |
| B. | none of the above |
| C. | stores ledger control account/raw material control account |
| D. | purchase account |
| Answer» D. purchase account | |
| 549. |
The budgeted cost of electricity is Rs. 62,500 for 5,000 units of production per month and Rs. 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2014, the budgeted amount of electricity for the month is |
| A. | rs. 77,770 |
| B. | rs. 76,750 |
| C. | rs. 74,360 |
| D. | rs. 79,572 |
| Answer» C. rs. 74,360 | |
| 550. |
ABC Ltd. has furnished the following information for 4,000 units of product for the year 2014-2015 : Particulars Rs. Direct materials 2,50,000 Direct labour 2,00,000 Manufacturing 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. | |