571 + Mcqs in Cost Accounting Page 4 McqOptions

151.	The principle of this system is to penalize the slow worker by paying him a low piece rate for low production: -
A.	Merrick s Multiple Piece rate system
B.	Straight Piece rate system
C.	Taylor s Differential Piece rate system
D.	Gant Task bonus plan
Answer» D. Gant Task bonus plan

Discussion

152.	When job is very big and spread over long periods of time the method of costing adopted is
A.	Process
B.	Job
C.	Contract
D.	Batch
Answer» D. Batch

Discussion

153.	According to Merrick s multiple piece rate system, the piece rate applicable to a worker with an efficiency of 100 % or above is _____ of normal piece rate
A.	100%
B.	110%
C.	120%
D.	150%
Answer» D. 150%

Discussion

154.	Work which has been done but not certified is called
A.	Work uncertified
B.	Work certified
C.	Extra work
D.	None of the above
Answer» B. Work certified

Discussion

155.	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

Discussion

156.	When the completion stage of a contract is less than , the total expenditure on the contract is transferred to ..account.
A.	Work-in-Progress
B.	Profit and loss account
C.	miscellaneous account
D.	none of these
Answer» B. Profit and loss account

Discussion

157.	Specify the expenses excluded from costs:
A.	Direct or chargeable expenses
B.	Expenses of raising capital
C.	Selling overheads
D.	Indirect labour
Answer» C. Selling overheads

Discussion

158.	Depreciation of plant and machinery is apportioned on the basis of:
A.	Technical estimates
B.	Direct labour hours
C.	Kilowatt hours
D.	Capital value of assets
Answer» E.

Discussion

159.	is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.
A.	Rolling budget
B.	continuous budget
C.	annual budget
D.	both a & b
Answer» E.

Discussion

160.	Lighting expenses are apportioned on the basis of: -
A.	Floor Area
B.	Light Points
C.	No. of Workers
D.	Capital Values
Answer» C. No. of Workers

Discussion

161.	Cost Accounting is a separate
A.	branch of accounting
B.	method of accounting
C.	system of accounting
D.	none of the above
Answer» B. method of accounting

Discussion

162.	A document used for time keeping
A.	Job card
B.	Time card
C.	Daily time sheet
D.	All of these
Answer» C. Daily time sheet

Discussion

163.	Which of the following is a mechanical method of time keeping?
A.	Time recording clock
B.	Metal disc method
C.	Attendance register method
D.	None of the above
Answer» B. Metal disc method

Discussion

164.	The overheads which remain unaffected in total amount by fluctuations in volume of output.
A.	Variable Overhead
B.	Fixed Overhead
C.	Semi-variable Overhead
D.	None of the above
Answer» C. Semi-variable Overhead

Discussion

165.	Costs which remains constant at all level of production is a
A.	variable cost
B.	fixed cost
C.	sunk cost
D.	none of the above
Answer» C. sunk cost

Discussion

166.	The rate of change in the composition of the labour force in an organization is known as
A.	Labour ratio
B.	Replacement Rate
C.	Labour Turnover
D.	Overtime
Answer» D. Overtime

Discussion

167.	Which of the following document is not used for time booking?
A.	Weekly Time Sheets
B.	Time Card
C.	Daily Time Sheets
D.	Job Tickets
Answer» C. Daily Time Sheets

Discussion

168.	Recording time for attendance purpose and for calculation of wages is done through
A.	Time keeping
B.	Time booking
C.	Work study
D.	Motion study
Answer» C. Work study

Discussion

169.	In which of the following plans, time wages are not guaranteed?
A.	Halsey
B.	Rowan
C.	Taylor
D.	Gantt
Answer» D. Gantt

Discussion

170.	Overheads classified as Manufacturing, Administrative, Selling and Distribution come under:
A.	Function-wise classification
B.	Element-wise classification
C.	Behavior-wise classification
D.	Industry-wise classification
Answer» B. Element-wise classification

Discussion

171.	The purchasing system where there is a separate purchasing department entrusted with the task of making all purchases is called
A.	Centralised purchasing system
B.	Decentralised purchasing system
C.	Just in Time (JIT) Purchases
D.	Store-Keeping
Answer» B. Decentralised purchasing system

Discussion

172.	The manual methods of time keeping are:-
A.	Attendance Register Method
B.	Dial time records
C.	Time recording clocks
D.	All of these
Answer» B. Dial time records

Discussion

173.	The objectives of time-booking is
A.	To ensure the time is properly utilized by the workers
B.	To ascertain the labour cost of work done
C.	To provide a basis for apportionment of overheads
D.	All of the above
Answer» E.

Discussion

174.	budget is designed to remain unchanged irrespective of the volume of output or turnover attained.
A.	Master
B.	Fixed
C.	Flexible
D.	all of these
Answer» C. Flexible

Discussion

175.	Under Piece Rate System wages are paid according to
A.	the time worked
B.	the quantity of work
C.	the quality of production
D.	the efficiency of workers
Answer» C. the quality of production

Discussion

176.	How many piece rates are set for each job in Taylor s differential piece rate system?
A.	Two
B.	Three
C.	Four
D.	Many
Answer» B. Three

Discussion

177.	In the Halsey Premium Plan, bonus is usually set at what % of the time saved?
A.	50%
B.	30%
C.	40%
D.	10%
Answer» B. 30%

Discussion

178.	Example of semi-variable overhead items include the following except:
A.	Telephone
B.	Repairs and maintenance
C.	Depreciation of plant and machinery
D.	Insurance of plant and building
Answer» E.

Discussion

179.	The total of all indirect costs is known as
A.	Total cost
B.	Overhead
C.	Prime cost
D.	Work cost
Answer» C. Prime cost

Discussion

180.	A request sent to the purchasing department of a need for materials is called a:
A.	Purchase requisition
B.	Purchase order
C.	Inspection note
D.	None of the above
Answer» B. Purchase order

Discussion

181.	The method of costing most suitable for medicine manufacturing industry is:
A.	Unit Costing
B.	Process Costing
C.	Batch Costing
D.	Contract Costing
Answer» D. Contract Costing

Discussion

182.	The costing method which can be used in industry where the product passes through different processes is known as
A.	Job costing
B.	Operating costing
C.	Batch costing
D.	Process costing
Answer» E.

Discussion

183.	The costing method which can be used in industry where the product pass through different processes is known as______.
A.	job costing
B.	operating costing
C.	batch costing
D.	process costing
Answer» E.

Discussion

184.	The methods of time booking do not include
A.	Attendance Records
B.	Weekly Time Sheets
C.	Labour Cost Card
D.	Daily Time Sheet
Answer» B. Weekly Time Sheets

Discussion

185.	The practice of purchasing where all purchase functions is done through one department only.
A.	Centralised Purchasing
B.	Decentralised Purchasing
C.	Just-in-time Purchasing
D.	Single Purchasing
Answer» B. Decentralised Purchasing

Discussion

186.	A written request to a supplier for specified goods at an agreed price is called: -
A.	Purchase order
B.	Purchase requisition
C.	Receiving report
D.	Making Payment
Answer» C. Receiving report

Discussion

187.	Wages under this system is paid for the time worked irrespective of the volume of production during that time
A.	Time Rate System
B.	Piece Rate System
C.	Incentive Schemes
D.	None of the above
Answer» B. Piece Rate System

Discussion

188.	Standard time for a job is 8 hours and actual time taken is 6 hours. What is the total wages payable under Halsey plan if wage rate is Rs. 10 per hour?
A.	` 90
B.	`80
C.	` 70
D.	` 60
Answer» C. ` 70

Discussion

189.	Which of the following methods of wage payment does not guarantee wages on time basis?
A.	Piece rate system
B.	Time rate system
C.	Halsey premium system
D.	None of the above
Answer» B. Time rate system

Discussion

190.	Wage sheet is prepared by
A.	Payrolldepartment
B.	Personnel department
C.	Time keeping department
D.	Costing department
Answer» B. Personnel department

Discussion

191.	If an item of overhead expenditure is charged specifically to a single department this would be an example of:
A.	Apportionment
B.	Allocation
C.	Re-apportionment
D.	Absorption
Answer» C. Re-apportionment

Discussion

192.	Under piece rate system of wage payment, payment is made according to the: -
A.	Time worked
B.	Pieces produced
C.	No. of hours
D.	None of these
Answer» C. No. of hours

Discussion

193.	Allotment of whole items of overheads to cost centres is known as;
A.	allocation
B.	apportionment
C.	classification
D.	absorption
Answer» B. apportionment

Discussion

194.	Under absorption of overhead expense in cost accounting results in _______.
A.	decrease in costing profit.
B.	decrease in financial accounts profit
C.	increase in costing profit
D.	increase in financial accounts profit
Answer» D. increase in financial accounts profit

Discussion

195.	Indirect material used in production is classified as: -
A.	Office overhead
B.	Selling overhead
C.	Distribution overhead
D.	Factory overhead
Answer» E.

Discussion

196.	Indirect material scrap is adjusted along with: -
A.	Prime Cost
B.	Factory Cost
C.	Labor Cost
D.	Cost of goods sold
Answer» C. Labor Cost

Discussion

197.	A formal request by the Head of Department or an authorised officer to the purchase manager to the purchase manager to purchase specified materials.
A.	Material Transfer Note
B.	Bill of Materials
C.	Purchase Requisition
D.	Stores Requisition Note
Answer» D. Stores Requisition Note

Discussion

198.	________ is concerned with the recording of time of workers for the purpose of attendance and wage calculations.
A.	Roll call
B.	Recording
C.	Timekeeping
D.	Timebooking
Answer» D. Timebooking

Discussion

199.	The method of re-apportionment of overhead costs which is used when service department renders its services to other service departments but does not receive services of the other service departments.
A.	Stepladder Method
B.	Trial and Error Method
C.	Repeated Distribution Method
D.	All of the above
Answer» B. Trial and Error Method

Discussion

200.	Allotment of overhead to a cost unit is called:
A.	Apportionment
B.	Absorption
C.	Allocation
D.	Departmentation
Answer» C. Allocation

Discussion

Explore topic-wise MCQs in Bachelor of Management Studies (BMS).

The principle of this system is to penalize the slow worker by paying him a low piece rate for low production: -

When job is very big and spread over long periods of time the method of costing adopted is

According to Merrick s multiple piece rate system, the piece rate applicable to a worker with an efficiency of 100 % or above is _____ of normal piece rate

Work which has been done but not certified is called

The loss incurred on an incomplete contract is transferred to .account.

When the completion stage of a contract is less than , the total expenditure on the contract is transferred to ..account.

Specify the expenses excluded from costs:

Depreciation of plant and machinery is apportioned on the basis of:

is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

Lighting expenses are apportioned on the basis of: -

Cost Accounting is a separate

A document used for time keeping

Which of the following is a mechanical method of time keeping?

The overheads which remain unaffected in total amount by fluctuations in volume of output.

Costs which remains constant at all level of production is a

The rate of change in the composition of the labour force in an organization is known as

Which of the following document is not used for time booking?

Recording time for attendance purpose and for calculation of wages is done through

In which of the following plans, time wages are not guaranteed?

Overheads classified as Manufacturing, Administrative, Selling and Distribution come under:

The purchasing system where there is a separate purchasing department entrusted with the task of making all purchases is called

The manual methods of time keeping are:-

The objectives of time-booking is

budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

Under Piece Rate System wages are paid according to

How many piece rates are set for each job in Taylor s differential piece rate system?

In the Halsey Premium Plan, bonus is usually set at what % of the time saved?

Example of semi-variable overhead items include the following except:

The total of all indirect costs is known as

A request sent to the purchasing department of a need for materials is called a:

The method of costing most suitable for medicine manufacturing industry is:

The costing method which can be used in industry where the product passes through different processes is known as

The costing method which can be used in industry where the product pass through different processes is known as______.

The methods of time booking do not include

The practice of purchasing where all purchase functions is done through one department only.

A written request to a supplier for specified goods at an agreed price is called: -

Wages under this system is paid for the time worked irrespective of the volume of production during that time

Standard time for a job is 8 hours and actual time taken is 6 hours. What is the total wages payable under Halsey plan if wage rate is Rs. 10 per hour?

Which of the following methods of wage payment does not guarantee wages on time basis?

Wage sheet is prepared by

If an item of overhead expenditure is charged specifically to a single department this would be an example of:

Under piece rate system of wage payment, payment is made according to the: -

Allotment of whole items of overheads to cost centres is known as;

Under absorption of overhead expense in cost accounting results in _______.

Indirect material used in production is classified as: -

Indirect material scrap is adjusted along with: -

A formal request by the Head of Department or an authorised officer to the purchase manager to the purchase manager to purchase specified materials.

________ is concerned with the recording of time of workers for the purpose of attendance and wage calculations.

The method of re-apportionment of overhead costs which is used when service department renders its services to other service departments but does not receive services of the other service departments.

Allotment of overhead to a cost unit is called: