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.
| 351. |
Cost Accounting has been developed becauseof……………… ofFinancial Accounting. |
| A. | Limitations |
| B. | advantages |
| C. | both a & b |
| D. | none of these |
| Answer» B. advantages | |
| 352. |
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% | |
| 353. |
Unsuccessful research expenditure should be …………….. costaccounts. |
| A. | Excluded from |
| B. | included in |
| C. | apportioned in |
| D. | none of these |
| Answer» B. included in | |
| 354. |
Service costing is not used in one of the following: |
| A. | Electricity |
| B. | Hospitals |
| C. | transport |
| D. | Electronics |
| Answer» E. | |
| 355. |
A favourable variance will arise when capital revenues are………..thanexpected. |
| A. | More |
| B. | Less |
| C. | Lesser |
| D. | None of the above |
| Answer» B. Less | |
| 356. |
An opportunity cost is ………………….. |
| A. | the advantage foregone |
| B. | the cost |
| C. | the income |
| D. | none of the above. |
| Answer» B. the cost | |
| 357. |
The quantity of material to be ordered at one time is known as………… |
| A. | Ordering quantity |
| B. | commercial order quantity |
| C. | economic order quantity |
| D. | none of these |
| Answer» B. commercial order quantity | |
| 358. |
Added value is the change in………………… |
| A. | Market value |
| B. | cost |
| C. | income |
| D. | none of the above. |
| Answer» B. cost | |
| 359. |
The primary emphasis of………………..cost is on the planning functionof management. |
| A. | Budgeted |
| B. | standard |
| C. | period |
| D. | none of these |
| Answer» B. standard | |
| 360. |
Inventory turnover ratio = Cost of …………………..during the period ÷Cost of average inventory held during the period. |
| A. | Inventory consumed |
| B. | minimum inventory |
| C. | maximum inventory |
| D. | none of these |
| Answer» B. minimum inventory | |
| 361. |
Economic Batch Quantity is an important point to be determined inindustries where …………… costing is employed. |
| A. | Job |
| B. | batch |
| C. | operation |
| D. | output |
| Answer» C. operation | |
| 362. |
In inter process profits, the output of one process is transferred fromone process to another not at …………….but at ………………. |
| A. | Market price, actual cost |
| B. | Actual cost, market price |
| C. | both a& b |
| D. | none of these |
| Answer» C. both a& b | |
| 363. |
First in first out method of valuing material issues is suitable in timesof………… |
| A. | Rising prices |
| B. | falling prices |
| C. | fluctuating prices |
| D. | none of these |
| Answer» C. fluctuating prices | |
| 364. |
Volume Variance = |
| A. | Standard rate (Actual output-budgeted output) |
| B. | Actual output x standard rate-budgeted fixed overheads |
| C. | Standard rate per hour(standard hours produced-actual hours) |
| D. | All of the above |
| Answer» E. | |
| 365. |
Expenses incurred during production other than direct materials anddirect labour are called…………..factory expenses; those charged to production on estimated basis are called ……………. |
| A. | Actual, applied |
| B. | applied, actual |
| C. | indirect, direct |
| D. | none of these |
| Answer» B. applied, actual | |
| 366. |
……………….is the value of a benefit where no actual cost is incurred. |
| A. | Imputed |
| B. | sunk |
| C. | out of pocket |
| D. | none of these |
| Answer» B. sunk | |
| 367. |
……………….expenses are partly fixed and partly variable. |
| A. | All expenses |
| B. | variable |
| C. | fixed |
| D. | semi-variable |
| Answer» E. | |
| 368. |
…………………is a budget which is updated continuously by adding afurther 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. | |
| 369. |
The per unit expense of the ……………portion factory overhead varieswith 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 | |
| 370. |
………………..is maintained to know how the worker’s time shown bythe time card is spent on various jobs. |
| A. | Daily time sheets |
| B. | weekly time sheets |
| C. | job cards |
| D. | none of the above |
| Answer» D. none of the above | |
| 371. |
Material mix variance = standard cost of standard mix - ……………….. |
| A. | Actual cost of actual mix |
| B. | Actual cost of standard mix |
| C. | Standard cost of actual mix |
| D. | Standard cost of budgeted mix |
| Answer» D. Standard cost of budgeted mix | |
| 372. |
Primary packing is an item of ……………… |
| A. | Selling overheads |
| B. | prime cost |
| C. | distribution overheads |
| D. | factory overheads |
| Answer» C. distribution overheads | |
| 373. |
Economic Batch Quantity depends on ……………….and……………..costs. |
| A. | Material, labour |
| B. | set-up costs, carrying |
| C. | transportation, carrying |
| D. | warehousing, labour |
| Answer» C. transportation, carrying | |
| 374. |
…………………..is not the scope ofCost Accountancy. |
| A. | Ascertaining cost |
| B. | cost accounting |
| C. | cost control |
| D. | tax planning |
| Answer» E. | |
| 375. |
When …………………….is used on the basis of budgeted overheadsand the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads. |
| A. | A predetermined rate |
| B. | actual rate method of absorption |
| C. | both a & b |
| D. | none of these |
| Answer» B. actual rate method of absorption | |
| 376. |
The principle types of inventories are raw materials and ,…………andfinished goods |
| A. | Processed materials |
| B. | Goods-in-progress |
| C. | stored goods |
| D. | goods for dispatch |
| Answer» C. stored goods | |
| 377. |
Standard costs is………………….. |
| A. | Predetermined cost |
| B. | budgeted cost |
| C. | Actual cost |
| D. | none of these |
| Answer» B. budgeted cost | |
| 378. |
Inflated price method of valuing material issues is suitablewhen………… |
| A. | Materials are subject to natural wastage |
| B. | prices rise |
| C. | prices fall |
| D. | none of these |
| Answer» B. prices rise | |
| 379. |
Operating costing is also known as ……………..costing. |
| A. | Service |
| B. | batch |
| C. | multiple |
| D. | job |
| Answer» B. batch | |
| 380. |
A bus carries 25 passengers daily for 25 days and its mileage permonth is 1000 kms. Its passenger miles are……………… |
| A. | 30,000 |
| B. | 12,500 |
| C. | 20,000 |
| D. | 25,000 |
| Answer» E. | |
| 381. |
………….arises where the actual process loss is less than the normalpredetermined process loss. |
| A. | Normal loss |
| B. | abnormal loss |
| C. | abnormal gain |
| D. | none of these |
| Answer» D. none of these | |
| 382. |
Inventory turnover in days = Days during the period ÷……………….. |
| A. | Inventory turnover ratio |
| B. | material consumed during the period |
| C. | cost of average stock during the period |
| D. | none of these |
| Answer» B. material consumed during the period | |
| 383. |
The difference between fixed and variable cost has a specialsignificance in the preparation of |
| A. | Flexible budget |
| B. | master budget |
| C. | cash budget |
| D. | sales budget |
| Answer» B. master budget | |
| 384. |
If the present cost of the car is Rs.1,00,000 residual value at the endof the 5th year is Rs.20,000, the monthly depreciation is………… |
| A. | Rs.20,000 |
| B. | Rs.16,000 |
| C. | Rs.1,333 |
| D. | Rs.17,333 |
| Answer» D. Rs.17,333 | |
| 385. |
Cash Budget is a ……………….budget. |
| A. | Long term |
| B. | very long term |
| C. | short term |
| D. | very short term |
| Answer» D. very short term | |
| 386. |
A bill of material serves the purpose of………………… |
| A. | Material requisition |
| B. | stores ledger |
| C. | material issue analysis sheet |
| D. | none of these |
| Answer» B. stores ledger | |
| 387. |
When the completion stage of the contract is more than half, the profitto be credited to Profit and Loss account will be equal to………….. |
| A. | 1/3rd of Notional Profit x cash received Work certified |
| B. | ½ of Notional Profit x cash received Work certified |
| C. | 2/3rd of Notional profit x cash received Work certified |
| D. | full Notional Profit. |
| Answer» D. full Notional Profit. | |
| 388. |
Activity Ratio = |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 |
| Answer» E. | |
| 389. |
Cost accounting is based on……………….figures. |
| A. | Estimated |
| B. | historical |
| C. | actual |
| D. | none of these. |
| Answer» B. historical | |
| 390. |
…………….is the excess of overheads absorbed over the actual amountof 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 | |
| 391. |
……………..is an example of long-term budget |
| A. | Cash budget |
| B. | Capital expenditure budget |
| C. | Research and development budget |
| D. | Both b & c |
| Answer» E. | |
| 392. |
Basis of apportionment of stores service expenses is ……………….. |
| A. | Value of materials consumed |
| B. | units of material consumed |
| C. | products produced |
| D. | none of these |
| Answer» B. units of material consumed | |
| 393. |
Market price method is considered to be the best methodwhen………….. |
| A. | Quotations have to be sent |
| B. | prices fluctuate |
| C. | materials are subject to natural wastage |
| D. | none of these |
| Answer» B. prices fluctuate | |
| 394. |
…………………. Accounting is not only a positive science but also anormative science because it includes techniques of budgetary control and standard costing. |
| A. | Financial |
| B. | Cost |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 395. |
Basis of apportionment of welfare department expenses is………….. |
| A. | Wages of each department |
| B. | Number of employees |
| C. | materials consumed |
| D. | number of machineries |
| Answer» C. materials consumed | |
| 396. |
Efficiency Ratio= |
| A. | Number of actual working days in a period x 100 Number of working days in the budget period |
| B. | Actual hours worked x 100 Budgeted hours |
| C. | Standard hours for actual production x 100 Actual hours worked |
| D. | Standard hours for actual productionx 100 Budgeted standard hours |
| Answer» D. Standard hours for actual productionx 100 Budgeted standard hours | |
| 397. |
In case of materials the key factor may be. |
| A. | Insufficient advertising |
| B. | restrictions imposed by quota |
| C. | low market demand |
| D. | shortage of power |
| Answer» C. low market demand | |
| 398. |
……………obviates the necessity for the physical checking of all itemsof 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. | |
| 399. |
The technique of standard costing may not be applicable in case of |
| A. | Large concerns |
| B. | Small concerns |
| C. | All concerns |
| D. | Both b & c |
| Answer» E. | |
| 400. |
In service costing, fixed charges are also called as………………….. |
| A. | Standing charges |
| B. | variable charges |
| C. | fixed charges |
| D. | none of these |
| Answer» B. variable charges | |