Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract?

Implied warranty of merchantability

Implied warranty of specified quality

stores organization is adopted to store all the goods at centrally located at on place.

Central stores with sub-stores.

68 + Mcqs in Cost and Works Accounting 1 in Bachelor of Commerce (B Com) Page 1 McqOptions

1.	..does not deal with the accumulation, classification, analysis, allocation, summarization, interpretation, reporting and control of current and perspective costs.
A.	Cost Accounting
B.	Financial Accounting
C.	Cost Accountancy
D.	Practice
Answer» C. Cost Accountancy

Discussion

2.	The branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs is known as
A.	Cost Accountancy
B.	Costing
C.	Cost Accounting
D.	Advantages
Answer» D. Advantages

Discussion

3.	The aggregate amount of all the items of expenses paid or payable for the particular product or service is called as
A.	Direct cost
B.	Committed cost
C.	Total Cost
D.	Marginal cost
Answer» D. Marginal cost

Discussion

4.	The amount of expenditure incurred on, or attributable to, a specified thing or an activity or cost unit is known as
A.	Product
B.	Cost
C.	Batch
D.	Financial Accounting
Answer» C. Batch

Discussion

5.	..cost represents the increase or decrease in total cost which occurs with change in output.
A.	Conversion cost
B.	Marginal cost
C.	Explicit cost
D.	Method
Answer» C. Explicit cost

Discussion

6.	The expenses which can be directly charged to jobs, products, processes, cost centers or cost units is termed as
A.	Direct Cost
B.	Indirect Cost
C.	Committed Cost
D.	Reduction of cost
Answer» B. Indirect Cost

Discussion

7.	..is the system of costing under which costs are determined after they have been incurred.
A.	Uniform costing
B.	Historical costing
C.	Standard costing
D.	Cost Accounting
Answer» C. Standard costing

Discussion

8.	.is applied where production is carried out as per specific order and customer specifications.
A.	Batch costing
B.	Job costing
C.	Contract costing
D.	Fixed expense
Answer» C. Contract costing

Discussion

9.	The term . is comprehensively used to include various aspects such as costing, cost accounting, cost control, cost audit and budgetary control.
A.	Cost Accountancy
B.	Costing
C.	Cost Accounting
D.	Inventory control
Answer» B. Costing

Discussion

10.	..is concerned with formulation and / or application of principles, methods and techniques of costing.
A.	Cost Accountancy
B.	Costing
C.	Cost Accounting
D.	Calculation of cost
Answer» B. Costing

Discussion

11.	The evolution of cost accounting took place because of .of financial accounting.
A.	Advantages
B.	Limitations
C.	Merits
D.	Management control
Answer» C. Merits

Discussion

12.	helps the management to eliminate inefficiencies caused by material wastage, use of obsolete machinery, improper planning etc.
A.	Financial Accounting
B.	Cost Accounting
C.	Environmental Accounting
D.	Management control
Answer» C. Environmental Accounting

Discussion

13.	A unit of quantity of product, service or time, in relation to which cost may be ascertained or expressed is known as .
A.	Cost Centre
B.	Cost Sheet
C.	Cost Unit
D.	none
Answer» D. none

Discussion

14.	A location, person or item of equipment for which costs may be ascertained and used for the purposes of cost control is known as .
A.	Cost Centre
B.	Cost Sheet
C.	Cost Unit
D.	both (a) and (b)
Answer» B. Cost Sheet

Discussion

15.	The cost that remains unchanged in spite of change in volume of production is known as .
A.	Fixed cost
B.	Variable cost
C.	Semi-variable cost
D.	Direct Cost
Answer» B. Variable cost

Discussion

16.	Classification of cost into factory cost, administrative cost, selling & distribution cost and research and development cost is done on the basis of ...
A.	Elements
B.	Functions
C.	Time
D.	Strategy
Answer» C. Time

Discussion

17.	_________ is a narrative description of the work to be accomplished or resource to be supplied.
A.	Purchase order
B.	Level of effort work
C.	Scope of work
D.	Contract stipulation
Answer» D. Contract stipulation

Discussion

18.	The term ..refers to all commodities that are consumed in the process of production, assembly and fabricated parts
A.	Labour
B.	Material
C.	Expenses
D.	none
Answer» C. Expenses

Discussion

19.	The __________ specification describes, defines or specifies the goods / services to be supplied. Performance
A.	Functional
B.	Technical
C.	Bid
D.	General Requirements
Answer» D. General Requirements

Discussion

20.	..purchase procedure should be installed to ensure that the purchases are made at favourable prices.
A.	Marginal
B.	Standard
C.	Joint
D.	none
Answer» C. Joint

Discussion

21.	The cost of activities relating to create and stimulate demand for company s products and to secure orders is known as .overheads.
A.	Administrative
B.	Factory
C.	Selling and Distribution
D.	Office
Answer» D. Office

Discussion

22.	method of pricing material issues provides a better matching of current costs with current revenues.
A.	FIFO
B.	LIFO
C.	Simple Average
D.	none
Answer» C. Simple Average

Discussion

23.	The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is
A.	400
B.	440
C.	480
D.	500
Answer» B. 440

Discussion

24.	.is specialized activity frequently carried on by a separate department under the control of buyer or purchasing officer.
A.	Purchasing
B.	Selling
C.	Costing
D.	none
Answer» B. Selling

Discussion

25.	For prompt and correct payment of purchase bills there should be close liaison with the ..and ..department.
A.	account and store
B.	account and sales
C.	sales and Purchase
D.	Administration and Purchase
Answer» B. account and sales

Discussion

26.	Purchase ..is to be prepared to know what to buy, what should be the quantity, quality and price.
A.	requisition
B.	order
C.	budget
D.	none
Answer» D. none

Discussion

27.	The .must maintain a proper classified record of all purchases, uses and stock of materials.
A.	Costing officer
B.	Purchase manager
C.	stores clerk
D.	none
Answer» C. stores clerk

Discussion

28.	The include all types of expenses other than direct materials and direct labour which are incurred for a particular product or job.
A.	Direct labour
B.	Direct expenses
C.	Direct material
D.	none
Answer» C. Direct material

Discussion

29.	Under method of pricing material issue the value of closing stock represents the current market price.
A.	Weighted Average
B.	LIFO
C.	FIFO
D.	none
Answer» D. none

Discussion

30.	Simple average method is based on the principle that materials issues should be valued at average price.
A.	Weighted
B.	Simple
C.	Periodic
D.	none
Answer» C. Periodic

Discussion

31.	The average stock level is .. units if the maximum stock level is 2475 units and the minimum stock level is 855 units.
A.	1565
B.	1665
C.	1465
D.	none
Answer» C. 1465

Discussion

32.	The aggregate of indirect material, indirect labour and indirect expenses in termed as .
A.	Material Cost
B.	Overheads
C.	Labour Cost
D.	Closing Stock
Answer» C. Labour Cost

Discussion

33.	The term .may be defined as the systematic control over the procurement of materials.
A.	Material control
B.	Purchase control
C.	Sales control
D.	none
Answer» C. Sales control

Discussion

34.	The expenses which cannot be directly identified with a particular unit or cost centre is known as ...
A.	Indirect Labour
B.	Indirect material
C.	Indirect expenses
D.	Direct expenses
Answer» D. Direct expenses

Discussion

35.	Proper classification and codification of various items in stores is essential for efficient .. .
A.	Record keeping
B.	Storage
C.	Selling
D.	none
Answer» C. Selling

Discussion

36.	By which means is a contractor able to control costs overruns due to changing requirements?
A.	Project data review
B.	Change order
C.	Change control
D.	Contract negotiations
Answer» D. Contract negotiations

Discussion

37.	Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract?
A.	Implied warranty of merchantability
B.	Implied warranty of specified quality
C.	Express warranty
D.	none of the above
Answer» D. none of the above

Discussion

38.	The overhead cost incurred from the stage of procurement of raw material till the stage of production of finished goods is known as .
A.	Office overheads
B.	Factory overheads
C.	Selling overheads
D.	PRIME COST
Answer» C. Selling overheads

Discussion

39.	Maintaining prompt and accurate records of all goods received, issued and returned is the duty of ..
A.	Inspection clerk
B.	Goods receiving clerk
C.	Storekeeper
D.	none
Answer» D. none

Discussion

40.	Weighted average cost method produces different allocation of inventory costs in periodic and perpetual inventory system?
A.	Yes
B.	No
C.	all
D.	none
Answer» B. No

Discussion

41.	.is a master requisition which lists all the materials required for the completion of a job.
A.	Bill of Material
B.	Purchase Requisition
C.	Material Requisition
D.	none
Answer» B. Purchase Requisition

Discussion

42.	Which of the following is not used as a base for apportionment of administration overheads?
A.	Direct wages
B.	Works cost
C.	Conversion cost
D.	Sales value
Answer» B. Works cost

Discussion

43.	All workers who are directly engaged in manufacturing activity are known as labour.
A.	Direct
B.	Indirect
C.	Contract
D.	none
Answer» B. Indirect

Discussion

44.	The term is the one which is identifiable as belonging exclusively to a particular process, product, and unit.
A.	Direct Cost
B.	Indirect Cost
C.	Standard Cost
D.	none
Answer» B. Indirect Cost

Discussion

45.	If the total cost of a product is Rs.25, 000/- and the sales figure is 47,000/-, then the product is in by Rs.22, 000/-.
A.	Loss
B.	Profit
C.	Neither profit nor loss
D.	Commission
Answer» C. Neither profit nor loss

Discussion

46.	The will in all his activities carry out the policy of his organization with regard o buying
A.	Purchasing Officer
B.	General Manager
C.	Head of the department
D.	none
Answer» B. General Manager

Discussion

47.	stores organization is adopted to store all the goods at centrally located at on place.
A.	Centralized
B.	Central stores with sub-stores.
C.	Independent
D.	none
Answer» B. Central stores with sub-stores.

Discussion

48.	Advantage of both centralized buying and storage of having stock conveniently available at several issuing points are possible in . system of stores organization.
A.	Independent stores
B.	Central stores with Sub-stores
C.	Centralised Stores
D.	none
Answer» C. Centralised Stores

Discussion

49.	If WIP opening stock is 10,000 units, work done in the period is 13,000 and WIP closing stock is 5,000 units. The equivalent completed unit during the period is:
A.	19,000n
B.	18,000
C.	17,000
D.	none
Answer» C. 17,000

Discussion

50.	method of pricing issues follows the principle that material received first are issued first.
A.	Weighted Average
B.	LIFO
C.	FIFO
D.	none
Answer» D. none

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

..does not deal with the accumulation, classification, analysis, allocation, summarization, interpretation, reporting and control of current and perspective costs.

The branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs is known as

The aggregate amount of all the items of expenses paid or payable for the particular product or service is called as

The amount of expenditure incurred on, or attributable to, a specified thing or an activity or cost unit is known as

..cost represents the increase or decrease in total cost which occurs with change in output.

The expenses which can be directly charged to jobs, products, processes, cost centers or cost units is termed as

..is the system of costing under which costs are determined after they have been incurred.

.is applied where production is carried out as per specific order and customer specifications.

The term . is comprehensively used to include various aspects such as costing, cost accounting, cost control, cost audit and budgetary control.

..is concerned with formulation and / or application of principles, methods and techniques of costing.

The evolution of cost accounting took place because of .of financial accounting.

helps the management to eliminate inefficiencies caused by material wastage, use of obsolete machinery, improper planning etc.

A unit of quantity of product, service or time, in relation to which cost may be ascertained or expressed is known as .

A location, person or item of equipment for which costs may be ascertained and used for the purposes of cost control is known as .

The cost that remains unchanged in spite of change in volume of production is known as .

Classification of cost into factory cost, administrative cost, selling & distribution cost and research and development cost is done on the basis of ...

_________ is a narrative description of the work to be accomplished or resource to be supplied.

The term ..refers to all commodities that are consumed in the process of production, assembly and fabricated parts

The __________ specification describes, defines or specifies the goods / services to be supplied. Performance

..purchase procedure should be installed to ensure that the purchases are made at favourable prices.

The cost of activities relating to create and stimulate demand for company s products and to secure orders is known as .overheads.

method of pricing material issues provides a better matching of current costs with current revenues.

The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is

.is specialized activity frequently carried on by a separate department under the control of buyer or purchasing officer.

For prompt and correct payment of purchase bills there should be close liaison with the ..and ..department.

Purchase ..is to be prepared to know what to buy, what should be the quantity, quality and price.

The .must maintain a proper classified record of all purchases, uses and stock of materials.

The include all types of expenses other than direct materials and direct labour which are incurred for a particular product or job.

Under method of pricing material issue the value of closing stock represents the current market price.

Simple average method is based on the principle that materials issues should be valued at average price.

The average stock level is .. units if the maximum stock level is 2475 units and the minimum stock level is 855 units.

The aggregate of indirect material, indirect labour and indirect expenses in termed as .

The term .may be defined as the systematic control over the procurement of materials.

The expenses which cannot be directly identified with a particular unit or cost centre is known as ...

Proper classification and codification of various items in stores is essential for efficient .. .

By which means is a contractor able to control costs overruns due to changing requirements?

Which type of warranty is enacted if a service or product does not meet the level of quality specified in the contract?

The overhead cost incurred from the stage of procurement of raw material till the stage of production of finished goods is known as .

Maintaining prompt and accurate records of all goods received, issued and returned is the duty of ..

Weighted average cost method produces different allocation of inventory costs in periodic and perpetual inventory system?

.is a master requisition which lists all the materials required for the completion of a job.

Which of the following is not used as a base for apportionment of administration overheads?

All workers who are directly engaged in manufacturing activity are known as labour.

The term is the one which is identifiable as belonging exclusively to a particular process, product, and unit.

If the total cost of a product is Rs.25, 000/- and the sales figure is 47,000/-, then the product is in by Rs.22, 000/-.

The will in all his activities carry out the policy of his organization with regard o buying

stores organization is adopted to store all the goods at centrally located at on place.

Advantage of both centralized buying and storage of having stock conveniently available at several issuing points are possible in . system of stores organization.

If WIP opening stock is 10,000 units, work done in the period is 13,000 and WIP closing stock is 5,000 units. The equivalent completed unit during the period is:

method of pricing issues follows the principle that material received first are issued first.