MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 651. |
Under absorption of overhead expenses in cost accounting results in _________.%! |
| A. | decrease in costing profit |
| B. | decrease in financial accounts profit |
| C. | increase in costing profit |
| D. | increase in financial accounts profit |
| Answer» D. increase in financial accounts profit | |
| 652. |
Difference between budgeted amounts and actual results is classified as%! |
| A. | standard deviation |
| B. | variances |
| C. | mean average |
| D. | weighted average |
| Answer» C. mean average | |
| 653. |
Manager who is responsible for investments of company, its costs and revenues is known as%! |
| A. | profit center |
| B. | investment center |
| C. | cost center |
| D. | revenue center |
| Answer» C. cost center | |
| 654. |
An arrangement of line of authority within company is classified as%! |
| A. | company structure |
| B. | organization structure |
| C. | line of authority |
| D. | line of responsibility |
| Answer» C. line of authority | |
| 655. |
Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as%! |
| A. | anticipated budgeting |
| B. | number budgeting |
| C. | predict budgeting |
| D. | kaizen budgeting |
| Answer» E. | |
| 656. |
*$_Insurance and garage rent is ________.? |
| A. | fixed charges |
| B. | maintenance charges |
| C. | operating charges |
| D. | running charges |
| Answer» B. maintenance charges | |
| 657. |
*$_When cash is received from contractee which a/c should be credited.? |
| A. | Cash a/c |
| B. | Contract a/c |
| C. | Contractor a/c |
| D. | Contractee a/c |
| Answer» E. | |
| 658. |
*$_Under absorption of overhead expenses in cost accounting results in _________.? |
| A. | decrease in costing profit |
| B. | decrease in financial accounts profit |
| C. | increase in costing profit |
| D. | increase in financial accounts profit |
| Answer» D. increase in financial accounts profit | |
| 659. |
*$_50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.? |
| A. | Rs. 1.25 |
| B. | Rs. 800 |
| C. | Rs. 875 |
| D. | Rs. 888 |
| Answer» D. Rs. 888 | |
| 660. |
*$_Inter process profits are ________.? |
| A. | credited to each process a/c |
| B. | debited to respective process a/c |
| C. | shown only in the finished stock a/c |
| D. | shown in the balance sheet |
| Answer» C. shown only in the finished stock a/c | |
| 661. |
*$_Contract costing is most appropriate method of costing for ________.? |
| A. | construction industry |
| B. | banking industry |
| C. | textile mills |
| D. | cement industry |
| Answer» B. banking industry | |
| 662. |
*$_In case of complete contract, the whole amount of profit is transferred to ________.? |
| A. | contract a/c |
| B. | work in progress a/c |
| C. | profit and loss a/c |
| D. | contractee a/c |
| Answer» D. contractee a/c | |
| 663. |
*$_Which of these is not an objective of Cost Accounting?? |
| A. | Ascertainment of Cost |
| B. | Determination of Selling Price |
| C. | Cost Control and Cost reduction |
| D. | Assisting Shareholders in decision making |
| Answer» E. | |
| 664. |
*$_Value of normal loss is charged to ________.? |
| A. | other good product |
| B. | trading a/c |
| C. | profit and loss a/c |
| D. | costing profit and loss a/c |
| Answer» B. trading a/c | |
| 665. |
*$_Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.? |
| A. | can not |
| B. | can |
| C. | may or may not |
| D. | must |
| Answer» B. can | |
| 666. |
*$_Describe the method of costing to be applied in case of Nursing Home:? |
| A. | Operating Costing |
| B. | Process Costing |
| C. | Contract Costing |
| D. | Job Costing |
| Answer» B. Process Costing | |
| 667. |
*$_Out of the following, what is not the work of purchase department:? |
| A. | Receiving purchase requisition |
| B. | Exploring the sources of material supply |
| C. | Preparation and execution of purchase orders |
| D. | Accounting for material received |
| Answer» E. | |
| 668. |
*$_ABC analysis is an inventory control technique in which:? |
| A. | Inventory levels are maintained |
| B. | Inventory is classified into A, B and C category with A being the highest quantity, lowest value |
| C. | Inventory is classified into A, B and C Category with A being the lowest quantity, highest value |
| D. | Either b or c |
| Answer» D. Either b or c | |
| 669. |
*$_An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate? |
| A. | annual irrelevant ordering costs |
| B. | annual relevant carrying costs |
| C. | annual relevant ordering costs |
| D. | annual irrelevant carrying costs |
| Answer» C. annual relevant ordering costs | |
| 670. |
*$_If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be? |
| A. | $200 |
| B. | $190 |
| C. | $160 |
| D. | $180 |
| Answer» E. | |
| 671. |
*$_Required rate of return, is multiplied per unit cost of purchased units to calculate? |
| A. | irrelevant inventory carrying costs |
| B. | relevant opportunity cost of capital |
| C. | relevant purchase order costs |
| D. | relevant inventory carrying costs |
| Answer» C. relevant purchase order costs | |
| 672. |
*$_Which of following is an example of purchasing costs?? |
| A. | incoming freight |
| B. | storage costs |
| C. | insurance |
| D. | spoilage |
| Answer» D. spoilage | |
| 673. |
*$_In production, variables such as level of activity or volume of company activity are known as? |
| A. | cost drivers |
| B. | timed drivers |
| C. | variable drivers |
| D. | fixed drivers |
| Answer» B. timed drivers | |
| 674. |
*$_Under which method of wage payment, wages are influenced by idle time?? |
| A. | Straight piece rate |
| B. | Differential piece rate |
| C. | Premium and bonus plan |
| D. | Time wage rate |
| Answer» E. | |
| 675. |
*$_Annual usage is 6000 units @ Rs 20 per unit Cost of placing an order is Rs 60 and annual carrying cost of one unit is 10% of inventory value EOQ = __________.? |
| A. | 600 units |
| B. | 750 units |
| C. | 1200 units |
| D. | 1250 units |
| Answer» B. 750 units | |
| 676. |
*$_Material control involves ________.? |
| A. | consumption of material |
| B. | issue of material |
| C. | purchase of material |
| D. | purchase, storage and issue of material |
| Answer» E. | |
| 677. |
*$_The process of allocating and apportioning the costs on suitable basis to all the departments is _______.? |
| A. | departmentalization |
| B. | primary distribution |
| C. | secondary distribution |
| D. | classification |
| Answer» C. secondary distribution | |
| 678. |
*$_Which of the following is a service department?? |
| A. | Refining department |
| B. | Machining department |
| C. | Receiving department |
| D. | Finishing department |
| Answer» D. Finishing department | |
| 679. |
*$_Factory overhead is also called as ________.? |
| A. | sundry overhead |
| B. | extra overhead |
| C. | works overhead |
| D. | total overhead |
| Answer» D. total overhead | |
| 680. |
*$_Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.? |
| A. | allocation |
| B. | allotment |
| C. | primary distribution |
| D. | secondary distribution |
| Answer» B. allotment | |
| 681. |
*$_Under Gantts task and bonus plan no bonus is payable to a worker if his efficiency is less than ________.? |
| A. | 50% |
| B. | 60% |
| C. | 835% |
| D. | 100% |
| Answer» E. | |
| 682. |
*$_Number of methods available for calculation of Labour turnover is ________.? |
| A. | two |
| B. | three |
| C. | four |
| D. | five |
| Answer» C. four | |
| 683. |
*$_In__________ the workers are paid on the basis of hourly daily,weekly rate? |
| A. | time rate system |
| B. | piece rate system |
| C. | premium bonus system |
| D. | emerson efficiency plan |
| Answer» B. piece rate system | |
| 684. |
*$_Those cost which is incurred to prevent the labour turnover __________.? |
| A. | management cost |
| B. | replacement cost |
| C. | preventive cost |
| D. | compensation cost |
| Answer» D. compensation cost | |
| 685. |
*$_FIFO is ________.? |
| A. | Fast Investment in Future Order |
| B. | First In First Out |
| C. | Fast In Fast Out |
| D. | Fast Issue Of Fast Order |
| Answer» C. Fast In Fast Out | |
| 686. |
*$_EOQ stands for ________.? |
| A. | Economic Order Quantity |
| B. | Essential Order Quantity |
| C. | Economic Output Quantity |
| D. | Essential Output Quantity |
| Answer» B. Essential Order Quantity | |
| 687. |
*$_If conversion cost is $25000 and direct manufacturing labour cost is $17000, then manufacturing overhead cost would be? |
| A. | $14,700 |
| B. | $68,000 |
| C. | $8,000 |
| D. | $42,000 |
| Answer» D. $42,000 | |
| 688. |
*$_If direct material cost is $85000 and direct manufacturing labour is $25000, then prime cost would be? |
| A. | $13,500 |
| B. | $55,600 |
| C. | $60,000 |
| D. | $110,000 |
| Answer» E. | |
| 689. |
*$_Cost which remains unchanged, in proportion to level total volume of production is classified as? |
| A. | total cost |
| B. | infeasible cost |
| C. | fixed cost |
| D. | variable cost |
| Answer» D. variable cost | |
| 690. |
*$_Cost, which is related to specific cost object and economically traceable, will be classified as? |
| A. | direct cost |
| B. | indirect cost |
| C. | line cost |
| D. | staff cost |
| Answer» B. indirect cost | |
| 691. |
*$_Prime cost is $50000 and direct manufacturing labour is $10000, then direct material cost will be? |
| A. | $40,000 |
| B. | $60,000 |
| C. | $52,000 |
| D. | $20,000 |
| Answer» B. $60,000 | |
| 692. |
*$_Costs which are considered as expenses in accounting period are also known as? |
| A. | inventory costs |
| B. | period costs |
| C. | timed costs |
| D. | labour overheads |
| Answer» C. timed costs | |
| 693. |
*$_An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as? |
| A. | direct material costs |
| B. | indirect material costs |
| C. | direct labour costs |
| D. | indirect labour costs |
| Answer» B. indirect material costs | |
| 694. |
*$_Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate? |
| A. | actual manufacturing overhead rate |
| B. | manufacturing overhead costs |
| C. | overhead rate |
| D. | direct rate |
| Answer» B. manufacturing overhead costs | |
| 695. |
*$_If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be? |
| A. | $1500 per machine hour |
| B. | $250 per machine hour |
| C. | $500 per machine hour |
| D. | $1000 per machine hour |
| Answer» D. $1000 per machine hour | |
| 696. |
*$_In accounting system, a document which consists of all assigned cost for specific job is classified as? |
| A. | job cost record |
| B. | job cost sheet |
| C. | source document |
| D. | both a and b |
| Answer» E. | |
| 697. |
*$_In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as? |
| A. | under allocated indirect cost |
| B. | over allocated direct cost |
| C. | over allocated budget |
| D. | under allocated budget |
| Answer» B. over allocated direct cost | |
| 698. |
*$_If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be? |
| A. | 109.87 |
| B. | $107.78 |
| C. | $106.56 |
| D. | $104.34 |
| Answer» C. $106.56 | |
| 699. |
*$_In an accounting system, document which supports journal entries is classified as? |
| A. | cost document |
| B. | priced document |
| C. | source document |
| D. | direct document |
| Answer» D. direct document | |
| 700. |
*$_If budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour, then annual indirect cost (budgeted) would be? |
| A. | $168,750 |
| B. | $148,570 |
| C. | $186,750 |
| D. | $125,680 |
| Answer» B. $148,570 | |