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. |
%_The physical distance covered by a vehicle is measured in terms of ________._% |
| A. | ton kilometers |
| B. | passenger kilometers |
| C. | vehicle days |
| D. | running kilometers or miles |
| Answer» E. | |
| 2. |
%_Which method of costing is best suited for interior decoration._% |
| A. | Contract accounting |
| B. | Operating costing |
| C. | Process costing |
| D. | Job costing |
| Answer» E. | |
| 3. |
%_Overvaluation of opening stock in financial accounting results ________._% |
| A. | decreases costing profit |
| B. | decreases financial accounts profit |
| C. | increases costing profit |
| D. | increases financial accounts profit |
| Answer» C. increases costing profit | |
| 4. |
%_100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________._% |
| A. | no abnormal loss and normal gain |
| B. | 2 units of abnormal gain |
| C. | 3 units of abnormal gain |
| D. | 3 units of normal loss |
| Answer» C. 3 units of abnormal gain | |
| 5. |
%_Balance of abnormal gain a/c is transferred to ________._% |
| A. | balance sheet |
| B. | debit side of profit and loss a/c |
| C. | credit side of profit and loss a/c |
| D. | costing profit and loss a/c |
| Answer» E. | |
| 6. |
%_Which method of costing can be used in furniture manufacture industry?_% |
| A. | Job costing |
| B. | Contract costing |
| C. | Process costing |
| D. | Specific order costing |
| Answer» B. Contract costing | |
| 7. |
%_Work uncertified is ________._% |
| A. | debited to contract a/c |
| B. | credited to contract a/c |
| C. | debited to contractor a/c |
| D. | debited to profit and loss a/c |
| Answer» C. debited to contractor a/c | |
| 8. |
%_Operating costing is more suitable for ________ industries_% |
| A. | profit |
| B. | Services |
| C. | Profit and service |
| D. | government organisation |
| Answer» C. Profit and service | |
| 9. |
%_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. | |
| 10. |
%_Fixed cost is a cost:_% |
| A. | Which changes in total in proportion to changes in output |
| B. | which is partly fixed and partly variable in relation to output |
| C. | Which do not change in total during a given period despise changes in output |
| D. | which remains same for each unit of output |
| Answer» D. which remains same for each unit of output | |
| 11. |
%_Sunk costs are:_% |
| A. | relevant for decision making |
| B. | Not relevant for decision making |
| C. | cost to be incurred in future |
| D. | future costs |
| Answer» C. cost to be incurred in future | |
| 12. |
%_Which of these is not a Material control technique:_% |
| A. | ABC Analysis |
| B. | Fixation of raw material levels |
| C. | Maintaining stores ledger |
| D. | Control over slow moving and non moving items |
| Answer» D. Control over slow moving and non moving items | |
| 13. |
%_Economic order quantity is that quantity at which cost of holding and carrying inventory is:_% |
| A. | Maximum and equal |
| B. | Minimum and equal |
| C. | It can be maximum or minimum depending upon case to case |
| D. | Minimum and unequal |
| Answer» C. It can be maximum or minimum depending upon case to case | |
| 14. |
%_If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be_% |
| A. | $7,500 |
| B. | $7,000 |
| C. | $6,500 |
| D. | $6,000 |
| Answer» B. $7,000 | |
| 15. |
%_Costs of goods acquired from suppliers is classified as_% |
| A. | stock-out costs |
| B. | ordering costs |
| C. | carrying costs |
| D. | purchasing costs |
| Answer» E. | |
| 16. |
%_Activities related to coordinating, controlling and planning flow of inventory are classified as_% |
| A. | decisional management |
| B. | throughput management |
| C. | inventory management |
| D. | manufacturing management |
| Answer» D. manufacturing management | |
| 17. |
%_Collection of cost data, according to accounting system in an organized way is classified as_% |
| A. | system accumulation |
| B. | accumulated data |
| C. | cost accumulation |
| D. | organized accumulation |
| Answer» D. organized accumulation | |
| 18. |
%_In accounting, resources sacrifice for achieving or fulfil specific objective is known as_% |
| A. | source cost |
| B. | sacrifice cost |
| C. | treated cost |
| D. | cost |
| Answer» E. | |
| 19. |
%_Which of the following method of wage payment is most suitable where the speed of production is beyond the control of worker?_% |
| A. | Time rate system |
| B. | Piece rate system |
| C. | Halsey premium system |
| D. | Rowan premium plan |
| Answer» B. Piece rate system | |
| 20. |
%_This is a level at which normal issue of material are stopped, but issued under special condition It is ________._% |
| A. | maximum stock level |
| B. | minimum stock level |
| C. | danger level |
| D. | average stock level |
| Answer» D. average stock level | |
| 21. |
%_Which of the following methods of stock control aims at concentrating efforts on selected items of material?_% |
| A. | Perpetual inventory system |
| B. | Material turnover ratio |
| C. | Level setting |
| D. | ABC analysis |
| Answer» E. | |
| 22. |
%_An example of fixed cost ________._% |
| A. | property tax |
| B. | rent for building |
| C. | direct material cost |
| D. | direct wages |
| Answer» C. direct material cost | |
| 23. |
%_Absorption means ________._% |
| A. | charging overheads to cost centres |
| B. | charging of overheads to cost units |
| C. | charging of overheads to cost centres or cost units |
| D. | allotment of overheads to different departments |
| Answer» C. charging of overheads to cost centres or cost units | |
| 24. |
%_A cost unit is ________._% |
| A. | the cost per machine hour |
| B. | the cost per labour hour |
| C. | a unit of production or service in relation to which costs are ascertained |
| D. | a measure of work output in a standard hour |
| Answer» D. a measure of work output in a standard hour | |
| 25. |
%_Overhead can be classified according to function-wise as ________._% |
| A. | fixed o/h, variable o/h and semi-variable o/h |
| B. | controllable o/h and uncontrollable o/h |
| C. | manufacturing o/h, administration o/h and selling & distribution o/h |
| D. | past cost and future cost |
| Answer» D. past cost and future cost | |
| 26. |
%_Time and motion study is conducted by ________._% |
| A. | time keeping department |
| B. | personnel department |
| C. | payroll department |
| D. | engineering department |
| Answer» E. | |
| 27. |
%_Idle time is ________._% |
| A. | time spent by workers in factory |
| B. | time spent by workers in office |
| C. | time spent by workers off their work |
| D. | time spent by workers on their job |
| Answer» D. time spent by workers on their job | |
| 28. |
%_Differential piece wages means _______._% |
| A. | different wages for different level of performance |
| B. | different wages for different time consumed |
| C. | different wages for different level of output |
| D. | different wages for different types of industries |
| Answer» B. different wages for different time consumed | |
| 29. |
%_Perpetual inventory system involves ___________% |
| A. | bincard and stores ledger |
| B. | bill of material and material requisition |
| C. | purchase requisition and purchase order |
| D. | inward and outward invoices |
| Answer» B. bill of material and material requisition | |
| 30. |
%_Material is issued by store keeper against ________._% |
| A. | material requisition |
| B. | material order |
| C. | goods received note |
| D. | purchase requisition |
| Answer» B. material order | |
| 31. |
%_Supplies, plant maintenance, plant rent, plant insurance and cleaning labour comes under which type of costs?_% |
| A. | labour costs |
| B. | factory overhead costs |
| C. | finished costs |
| D. | manufacturing costs |
| Answer» C. finished costs | |
| 32. |
%_Direct manufacturing labour costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be_% |
| A. | $47,000 |
| B. | $33,000 |
| C. | $57,000 |
| D. | $18,000 |
| Answer» B. $33,000 | |
| 33. |
%_Process of tracing direct costs and allocation of indirect costs is known as_% |
| A. | cost assignment |
| B. | direct assignment |
| C. | indirect assignment |
| D. | economic assignment |
| Answer» B. direct assignment | |
| 34. |
%_Wages paid to workers of factory are termed as_% |
| A. | workers premium |
| B. | overtime premium |
| C. | factory premium |
| D. | wage premium |
| Answer» C. factory premium | |
| 35. |
%_Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of_% |
| A. | information accounting |
| B. | cost accounting |
| C. | analyzing accounts |
| D. | marketing costs |
| Answer» C. analyzing accounts | |
| 36. |
%_Conversion cost is $20000 and manufacturing overhead cost is $7000, then direct manufacturing labour cost will be_% |
| A. | $27,000 |
| B. | $13,000 |
| C. | $130,000 |
| D. | $29,500 |
| Answer» C. $130,000 | |
| 37. |
%_Inventory of final goods that are not yet sold is called_% |
| A. | finished goods inventory |
| B. | indirect material inventory |
| C. | direct materials inventory |
| D. | work in process inventory |
| Answer» B. indirect material inventory | |
| 38. |
%_period cost, which consists income statement of manufacturing companies belongs to_% |
| A. | inventory costs |
| B. | product costs |
| C. | non-manufacturing costs |
| D. | manufacturing costs |
| Answer» D. manufacturing costs | |
| 39. |
%_A group of individual indirect cost item is defined as_% |
| A. | direct pool |
| B. | cost pool |
| C. | indirect pool |
| D. | item pool |
| Answer» C. indirect pool | |
| 40. |
%_If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be_% |
| A. | $4,730,000 |
| B. | $3,730,000 |
| C. | $2,730,000 |
| D. | $1,730,000 |
| Answer» D. $1,730,000 | |
| 41. |
%_If budgeted total direct labour hours are 5500 and budgeted direct labour cost is $755000, then budgeted direct labour cost rate is_% |
| A. | $138 per labour hour |
| B. | $137.27 per hour |
| C. | $140 per labour hour |
| D. | $142 per labour hour |
| Answer» C. $140 per labour hour | |
| 42. |
%_Systematic way of linking group of indirect cost to a cost object is classified as_% |
| A. | linked allocation base |
| B. | direct allocation base |
| C. | indirect allocation base |
| D. | cost allocation base |
| Answer» E. | |
| 43. |
%_In normal costing, manufacturing overhead allocated is also called_% |
| A. | manufacturing overhead applied |
| B. | labour overhead applied |
| C. | cost overhead applied |
| D. | budget overhead applied |
| Answer» B. labour overhead applied | |
| 44. |
%_If an actual indirect cost incurred is $25000 and indirect cost allocated is $23000, then over allocated indirect cost would be_% |
| A. | $48,000 |
| B. | -$2000 |
| C. | $2,000 |
| D. | -$48000 |
| Answer» D. -$48000 | |
| 45. |
%_Spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as_% |
| A. | proration approach |
| B. | appreciation approach |
| C. | depreciation approach |
| D. | adjusted approach |
| Answer» B. appreciation approach | |
| 46. |
%_Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base to calculate_% |
| A. | expected indirect cost rate |
| B. | expected direct cost rate |
| C. | budgeted indirect cost rate |
| D. | budgeted direct cost rate |
| Answer» D. budgeted direct cost rate | |
| 47. |
%_Cost of abnormal spoilage is not treated as_% |
| A. | conversion costs |
| B. | sunk costs |
| C. | inventoriable costs |
| D. | non inventoriable costs |
| Answer» E. | |
| 48. |
%_Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as_% |
| A. | rework point |
| B. | inspection point |
| C. | spoilage point |
| D. | scrap point |
| Answer» C. spoilage point | |
| 49. |
%_Normal spoilage is subtracted from total spoilage to calculate_% |
| A. | abnormal spoilage |
| B. | Gross weighted spoilage |
| C. | inventoriable spoilage |
| D. | partial spoilage |
| Answer» B. Gross weighted spoilage | |
| 50. |
%_An expected future cost which diverges in unconventional course of action is known's as_% |
| A. | partial cost |
| B. | total cost |
| C. | irrelevant cost |
| D. | relevant cost |
| Answer» E. | |