MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Element/s of Cost of a product are: |
| A. | Material only |
| B. | Labour only |
| C. | Expenses only |
| D. | Material, Labour and expenses |
| Answer» E. | |
| 2. |
Describe the cost unit applicable to the Bicycle industry: |
| A. | per part of bicycle |
| B. | per bicycle |
| C. | per tonne |
| D. | per day |
| Answer» C. per tonne | |
| 3. |
Bin Card is a? |
| A. | Quantitative as well as value wise records of material received, issued and balance |
| B. | Quantitative record of material received, issued and balance |
| C. | Value wise records of material received, issued and balance |
| D. | a record of labour attendance |
| Answer» C. Value wise records of material received, issued and balance | |
| 4. |
If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be |
| A. | $9,650 |
| B. | $2,350 |
| C. | $3,750 |
| D. | $2,750 |
| Answer» D. $2,750 | |
| 5. |
An ability of an accounting system, to point out use of resources in every step of production process is called |
| A. | back-flush trails |
| B. | audit trails |
| C. | trigger trails |
| D. | lead manufacturing trails |
| Answer» C. trigger trails | |
| 6. |
If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be |
| A. | $5,000 |
| B. | $4,500 |
| C. | $5,500 |
| D. | $6,000 |
| Answer» B. $4,500 | |
| 7. |
Relationship between change in activity and change in total costs is considered as |
| A. | fixed relationship |
| B. | cause and effect relationship |
| C. | ineffective relationship |
| D. | variable relationship |
| Answer» C. ineffective relationship | |
| 8. |
In accounting, cost which is predicted to be incurred or future cost is known as |
| A. | past cost |
| B. | incurred cost |
| C. | actual cost |
| D. | budgeted cost |
| Answer» E. | |
| 9. |
The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock ________. |
| A. | Simple average method |
| B. | weighted average method |
| C. | periodical average method |
| D. | periodic simple average method |
| Answer» C. periodical average method | |
| 10. |
The process of setting standards and comparing actual performance with standards with a view to control the cost is ________. |
| A. | cost reduction |
| B. | cost control |
| C. | cost allocation |
| D. | cost ascertainment |
| Answer» C. cost allocation | |
| 11. |
The most important element of cost in manufacturing industries is _________. |
| A. | material |
| B. | labour |
| C. | direct costs |
| D. | indirect costs |
| Answer» B. labour | |
| 12. |
Bad debt is an example of ________. |
| A. | production overhead |
| B. | administrative overhead |
| C. | selling overhead |
| D. | distribution overhead |
| Answer» D. distribution overhead | |
| 13. |
The allotment of whole item of cost to cost centre or cost units is called _________. |
| A. | cost allocation |
| B. | cost apportionment |
| C. | cost absorption |
| D. | cost disbursement |
| Answer» B. cost apportionment | |
| 14. |
The process of redistribution of service department costs to production departments is ________. |
| A. | departmentalization |
| B. | primary distribution |
| C. | secondary distribution |
| D. | classification |
| Answer» D. classification | |
| 15. |
Merricks multiple piece rate system has _______. |
| A. | two rates |
| B. | three rates |
| C. | four rates |
| D. | five rates |
| Answer» C. four rates | |
| 16. |
Normal idle time __________. |
| A. | can be avoided |
| B. | can be minimized |
| C. | cannot be avoided |
| D. | can be controlled |
| Answer» D. can be controlled | |
| 17. |
When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is ________. |
| A. | 75% |
| B. | 80% |
| C. | 90% |
| D. | 120% |
| Answer» E. | |
| 18. |
GRN number refers to________. |
| A. | goods received note number |
| B. | goods returned note number |
| C. | goods shortage note number |
| D. | goods requisition note number |
| Answer» B. goods returned note number | |
| 19. |
Difference between attendance time and job time is _______. |
| A. | job time |
| B. | over time |
| C. | actual time |
| D. | idle time |
| Answer» E. | |
| 20. |
Material requisition is meant for ________. |
| A. | purchase of material |
| B. | supply of material from stores |
| C. | sale of material |
| D. | storage of material |
| Answer» C. sale of material | |
| 21. |
LIFO method of pricing of materials is more suitable when _________. |
| A. | material prices are rising |
| B. | material prices are falling |
| C. | material prices are constant |
| D. | material prices are fluctuating |
| Answer» B. material prices are falling | |
| 22. |
In costing of project, wages paid to workers for unproductive work at time of material shortage is termed as |
| A. | indirect wages |
| B. | health wages |
| C. | idle time wages |
| D. | shortage time wages |
| Answer» D. shortage time wages | |
| 23. |
Health care premium for workers and pension costs are included in |
| A. | payroll fringe costs |
| B. | health costs |
| C. | premium costs |
| D. | workers costs |
| Answer» B. health costs | |
| 24. |
Material or anything for which cost is to be measured is known as |
| A. | measurement object |
| B. | cost object |
| C. | accounting object |
| D. | budget object |
| Answer» C. accounting object | |
| 25. |
For companies in service sector, cost which is not considerable is |
| A. | Inventoriable costs |
| B. | finished costs |
| C. | factory overhead costs |
| D. | manufacturing overhead costs |
| Answer» B. finished costs | |
| 26. |
Terms used in manufacturing cost systems are |
| A. | manufacturing costs |
| B. | prime costs |
| C. | conversion costs |
| D. | both B and C |
| Answer» E. | |
| 27. |
Direct material costs are added into direct manufacturing costs to calculate |
| A. | discuss costs |
| B. | prime costs |
| C. | resale cost |
| D. | merchandise costs |
| Answer» C. resale cost | |
| 28. |
Wages and other benefits, provided to assembly line workers and operators of machine are classified under |
| A. | work in process costs |
| B. | finished costs |
| C. | direct manufacturing labour costs |
| D. | indirect manufacturing labour costs |
| Answer» E. | |
| 29. |
An inventory, which consists of partially worked goods or work in progress is called |
| A. | direct materials inventory |
| B. | work in process inventory |
| C. | finished goods inventory |
| D. | indirect material inventory |
| Answer» C. finished goods inventory | |
| 30. |
If budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be |
| A. | 15.67 per piece |
| B. | 16.67 per piece |
| C. | 14.67 per piece |
| D. | 13.67 per piece |
| Answer» C. 14.67 per piece | |
| 31. |
An approach which yields benefits of normal costing and actual manufacturing overhead is classified as |
| A. | unadjusted allocation rate approach |
| B. | adjusted budget rate approach |
| C. | unadjusted budget rate approach |
| D. | adjusted allocation rate approach |
| Answer» E. | |
| 32. |
Single or multiple units of distinct services or products are classified as |
| A. | cost |
| B. | job |
| C. | post |
| D. | price |
| Answer» C. post | |
| 33. |
Manufacturing overhead cost allocated to individual jobs is classified as |
| A. | manufacturing overhead allocated |
| B. | cost overhead applied |
| C. | manufacturing overhead applied |
| D. | both A and C |
| Answer» E. | |
| 34. |
If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be |
| A. | $78,000 |
| B. | -$78000 |
| C. | -$8000 |
| D. | $8,000 |
| Answer» D. $8,000 | |
| 35. |
An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called |
| A. | unadjusted budget rate approach |
| B. | adjusted allocation rate approach |
| C. | unadjusted allocation rate approach |
| D. | adjusted budget rate approach |
| Answer» C. unadjusted allocation rate approach | |
| 36. |
If budgeted indirect cost arte is $115 and budgeted cost allocation base is $830 per hour, then annual indirect cost (budgeted) will be |
| A. | $93,450 |
| B. | $94,560 |
| C. | $96,450 |
| D. | $95,450 |
| Answer» E. | |
| 37. |
If budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then budgeted indirect cost rate would be |
| A. | 69.72% |
| B. | 79.72% |
| C. | 99.75% |
| D. | 89.72% |
| Answer» E. | |
| 38. |
Residual material which results from manufacturing products is called |
| A. | reduced work |
| B. | spoilage |
| C. | rework |
| D. | scrap |
| Answer» E. | |
| 39. |
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate |
| A. | normal spoilage rates |
| B. | abnormal spoilage rates |
| C. | normal scrap rates |
| D. | abnormal scrap rates |
| Answer» B. abnormal spoilage rates | |
| 40. |
An example of rework is |
| A. | short lengths from wood work |
| B. | defective aluminium cans recycled by manufacturer |
| C. | detection of defective pieces before shipment |
| D. | none of above |
| Answer» D. none of above | |
| 41. |
Net realizable value is added into separate costs to calculate |
| A. | split off costs |
| B. | final cost of direct labour |
| C. | final sales |
| D. | final costs |
| Answer» D. final costs | |
| 42. |
Value of sales considers sales value at split off method is of |
| A. | entire direct material of accounting period |
| B. | entire production of accounting period |
| C. | portion of production of accounting period |
| D. | entire indirect material of accounting period |
| Answer» C. portion of production of accounting period | |
| 43. |
Gross margin is subtracted from sales value of all production to yield |
| A. | labour cost incurred on product |
| B. | production cost incurred on product |
| C. | marketing cost incurred on product |
| D. | all of above |
| Answer» C. marketing cost incurred on product | |
| 44. |
Costs incurred in production process that yield range of products simultaneously are known as |
| A. | separable costs |
| B. | joint costs |
| C. | main costs |
| D. | split off costs |
| Answer» C. main costs | |
| 45. |
Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as |
| A. | direct cost measure method |
| B. | indirect cost measure method |
| C. | physical-measure method |
| D. | relative-measure method |
| Answer» D. relative-measure method | |
| 46. |
Difference between flexible budget amount and corresponding actual result is called |
| A. | corresponding variance |
| B. | resultant variance |
| C. | flexible budget variance |
| D. | static budget variance |
| Answer» D. static budget variance | |
| 47. |
Number of units are 5000 and per unit price is $60, then flexible budget variable would be |
| A. | $5,000,000 |
| B. | $3,000,000 |
| C. | $2,000,000 |
| D. | $1,000,000 |
| Answer» C. $2,000,000 | |
| 48. |
If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be |
| A. | $29,000 |
| B. | $11,000 |
| C. | $15,000 |
| D. | $10,000 |
| Answer» C. $15,000 | |
| 49. |
If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be |
| A. | $27,000 |
| B. | $37,000 |
| C. | $97,000 |
| D. | $87,000 |
| Answer» B. $37,000 | |
| 50. |
Factors that accelerate process of refining a costing system include |
| A. | increase in product diversity |
| B. | increase in indirect costs |
| C. | product market competitions |
| D. | all of above |
| Answer» E. | |