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.
| 201. |
Idle Time is |
| A. | Time spent by workers to take lunch |
| B. | Time spent by workers on their jobs |
| C. | Time spent by workers in the factory |
| D. | The difference between time paid for and time spent on job |
| Answer» E. | |
| 202. |
Idle time does not include |
| A. | normal idle time |
| B. | abnormal idle time |
| C. | overtime |
| D. | All of the above |
| Answer» D. All of the above | |
| 203. |
An aggregate of indirect material, indirect labourand indirect expenses is called |
| A. | Capacity cost |
| B. | Set-up cost |
| C. | Depreciation |
| D. | Overheads. |
| Answer» E. | |
| 204. |
Indirect labour costs do not include |
| A. | inspector s wages |
| B. | assigned workman s wages |
| C. | watchman s wages |
| D. | cleaner s wages |
| Answer» C. watchman s wages | |
| 205. |
The use of FIFO method in material issue control is more suitable when |
| A. | prices are constant for a long time |
| B. | prices are constantly fluctuating |
| C. | prices are falling |
| D. | prices are rising |
| Answer» E. | |
| 206. |
The use of LIFO method in material issue control is more suitable when |
| A. | prices are constant for a long time |
| B. | prices are constantly fluctuating |
| C. | prices are falling |
| D. | prices are rising |
| Answer» D. prices are rising | |
| 207. |
.is the consolidated summary of the various functional budgets. |
| A. | Master Budget |
| B. | Sales budget |
| C. | Performance budget |
| D. | Cash Budget |
| Answer» B. Sales budget | |
| 208. |
The primary emphasis of ..cost is on the planning function of management. |
| A. | Budgeted |
| B. | standard |
| C. | period |
| D. | none of these |
| Answer» B. standard | |
| 209. |
Which of the following is not Selling and Distribution Expenses: |
| A. | Cost of samples |
| B. | Carriage outward |
| C. | Bad debts |
| D. | Primary packing material |
| Answer» E. | |
| 210. |
Labour flux rate denotes the: |
| A. | Change in workforce |
| B. | Number of employees leaving the organization |
| C. | Average number of employees |
| D. | Total change in composition of labour force due to additions and separations of workers. |
| Answer» E. | |
| 211. |
Fixed overhead costs are also called as: - |
| A. | Period cost |
| B. | Flexible cost |
| C. | Economic cost |
| D. | Sunk cost |
| Answer» B. Flexible cost | |
| 212. |
The difference between fixed and variable cost has a special significance in the preparation of |
| A. | Flexible budget |
| B. | master budget |
| C. | cash budget |
| D. | sales budget |
| Answer» B. master budget | |
| 213. |
The following is an example of indirect labour cost |
| A. | Wages of Peon |
| B. | Wages of a Machine Operator |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» B. Wages of a Machine Operator | |
| 214. |
Stores Ledger: |
| A. | makes a record of quantities only |
| B. | is maintained by the storekeeper |
| C. | is usually kept inside the stores |
| D. | makes a record of both quantities and values |
| Answer» E. | |
| 215. |
The method of recording stores balances after each receipt and issue to facilitate regular checking is known as |
| A. | Periodic Inventory System |
| B. | Perpetual Inventory System |
| C. | Store-keeping |
| D. | None of the above |
| Answer» C. Store-keeping | |
| 216. |
costs are partly fixed and partly variable in relation to output. |
| A. | Variable |
| B. | fixed |
| C. | Semi-variable |
| D. | both a & b |
| Answer» D. both a & b | |
| 217. |
These types of costs are partly fixed & partly variable is relation to output:- |
| A. | Fixed Cost |
| B. | Variable Cost |
| C. | Semi-variable Cost |
| D. | Works Cost |
| Answer» D. Works Cost | |
| 218. |
Replacement cost of labour includes cost of |
| A. | providing medical services |
| B. | providing housing |
| C. | employer s contribution to provident fund |
| D. | training new workers |
| Answer» E. | |
| 219. |
A record of both quantities & values maintained by the costing department is called: |
| A. | Bin card |
| B. | Stores ledger |
| C. | Stores records |
| D. | Purchase order |
| Answer» C. Stores records | |
| 220. |
Bin card is maintained by ____ |
| A. | Accounts department |
| B. | Costing department |
| C. | Stores department |
| D. | Purchase department |
| Answer» D. Purchase department | |
| 221. |
.budget gives an estimate of the anticipated receipts and payment of cash during the budget period. |
| A. | Sales |
| B. | Production |
| C. | Cash |
| D. | Master |
| Answer» D. Master | |
| 222. |
Unsuccessful research expenditure should be .. cost accounts. |
| A. | Excluded from |
| B. | included in |
| C. | apportioned in |
| D. | none of these |
| Answer» B. included in | |
| 223. |
The process of distribution of overheads allotted to a particular department or cost center over the units produced is called: |
| A. | Allocation |
| B. | Apportionment |
| C. | Absorption |
| D. | Departmentalization |
| Answer» D. Departmentalization | |
| 224. |
The budget which commonly takes the form of budgeted profit and loss account and balance sheet is |
| A. | cash budget |
| B. | master budget |
| C. | flexible budget |
| D. | fixed budget |
| Answer» C. flexible budget | |
| 225. |
The sum of value of work certified and uncertified appearing in the Contract Account is called |
| A. | Work in Progress |
| B. | Work in Process |
| C. | Work completed |
| D. | Work done |
| Answer» B. Work in Process | |
| 226. |
Bin card is a record of _________ only. |
| A. | Cost |
| B. | Expenses |
| C. | Value |
| D. | Quantity |
| Answer» E. | |
| 227. |
If the actual loss is more than the estimated normal loss, then it is |
| A. | abnormal loss |
| B. | normal loss |
| C. | seasonal loss |
| D. | abnormal gain |
| Answer» B. normal loss | |
| 228. |
In process costing when the actual loss is less than the normal loss then it is |
| A. | Abnormal gain |
| B. | Abnormal loss |
| C. | Process gain |
| D. | None of the above |
| Answer» B. Abnormal loss | |
| 229. |
.arises where the actual process loss is less than the normal predetermined process loss. |
| A. | Normal loss |
| B. | abnormal loss |
| C. | abnormal gain |
| D. | none of these |
| Answer» D. none of these | |
| 230. |
If the amount of work certified is less than of the contract price, then no profit should be taken to Profit & Loss Account. |
| A. | 20% |
| B. | 25% |
| C. | 33 1/3% |
| D. | 40% |
| Answer» C. 33 1/3% | |
| 231. |
Bin card is maintained by: |
| A. | Personnel Manager |
| B. | Store-keeper |
| C. | Cost Accountant |
| D. | Accountant |
| Answer» C. Cost Accountant | |
| 232. |
Over valuation of ________ in cost accounts is deducted to costing profit to find out financial profit. |
| A. | Closing stock |
| B. | Opening stock |
| C. | Factory OH |
| D. | Office OH |
| Answer» B. Opening stock | |
| 233. |
. is one which can be conveniently identified with and charged to a particular unit of cost. |
| A. | Direct cost |
| B. | Indirect cost |
| C. | Overhead |
| D. | none of these |
| Answer» B. Indirect cost | |
| 234. |
Under which method costs are collected & accumulated for each job: - |
| A. | Job Costing |
| B. | Contract Costing |
| C. | Batch Costing |
| D. | None of these |
| Answer» B. Contract Costing | |
| 235. |
Profit to be transferred to P& L A/c , if the contract is complete to the extent of only 20% is _____. |
| A. | nil |
| B. | 20% |
| C. | 25% |
| D. | 75% |
| Answer» B. 20% | |
| 236. |
budget gives differentbudgeted costs for different levels of activity. |
| A. | Master |
| B. | Fixed |
| C. | Flexible |
| D. | all of these |
| Answer» D. all of these | |
| 237. |
Material price variance is the difference between standard and actual prices of materials used multiplied by .. |
| A. | Actual quantity of materials used |
| B. | Budgeted quantity of materials used |
| C. | Standard quantity of materials used |
| D. | Either a or b |
| Answer» B. Budgeted quantity of materials used | |
| 238. |
Material costs which cannot be allocated but which are to be apportioned or absorbed by cost centres or cost units. |
| A. | Direct Material |
| B. | Indirect Material |
| C. | Materials in progress |
| D. | None of the above |
| Answer» C. Materials in progress | |
| 239. |
Equivalent units represent the production of a process in terms of ..units. |
| A. | Completed |
| B. | total production |
| C. | semi-finished |
| D. | both a& c |
| Answer» B. total production | |
| 240. |
.is the smallest segment of activity or area or responsibility for which costs are accumulated. |
| A. | Cost Object |
| B. | Cost centre |
| C. | cost driver |
| D. | none of the above |
| Answer» C. cost driver | |
| 241. |
This sheet is the daily record of the work done by a worker on different jobs: - |
| A. | Daily time sheets |
| B. | Weekly time sheets |
| C. | Job cards |
| D. | Combined job cards |
| Answer» B. Weekly time sheets | |
| 242. |
The excess of overheads absorbed over the actual amount of overheads incurred is called: - |
| A. | Under absorption |
| B. | Over absorption |
| C. | Allocation |
| D. | None of these |
| Answer» C. Allocation | |
| 243. |
_______ technique is a selective control of materials |
| A. | ABC |
| B. | Inventory turnover ratio |
| C. | Input output ratio |
| D. | EOQ |
| Answer» B. Inventory turnover ratio | |
| 244. |
In which method of material issues, production is charged at the recent prices? |
| A. | LIFO |
| B. | Simple Average |
| C. | FIFO |
| D. | Base Stock |
| Answer» B. Simple Average | |
| 245. |
To control costs it is essential to keep control on: - |
| A. | Prime Cost |
| B. | Overheads |
| C. | Indirect materials |
| D. | All of these |
| Answer» E. | |
| 246. |
An item of cost that is direct for one business may be ..for another business. |
| A. | Important |
| B. | direct |
| C. | Indirect |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 247. |
Costs which are ascertained after they have been incurred are called |
| A. | imputed costs |
| B. | sunk costs |
| C. | historical costs |
| D. | marginal costs |
| Answer» D. marginal costs | |
| 248. |
Contract costing is a specialized system of Job costing applies to: |
| A. | Short term contracts |
| B. | Medium term contracts |
| C. | Long term contracts |
| D. | Continuous process |
| Answer» D. Continuous process | |
| 249. |
Which document is prepared to transfer material from one job to the other job? |
| A. | Material Transfer Note |
| B. | Material Return Note |
| C. | Shop Credit Note |
| D. | Bill of materials |
| Answer» B. Material Return Note | |
| 250. |
Cost Accountancy is the science, art and .of a cost accountant. |
| A. | Practice |
| B. | exercise |
| C. | hard work |
| D. | effort |
| Answer» B. exercise | |