MCQOPTIONS
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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.
| 1201. |
What-if technique, which examines changes in results if original prediction would not be achieved is called? |
| A. | change analysis |
| B. | original analysis |
| C. | sensitivity analysis |
| D. | predicted analysis |
| Answer» D. predicted analysis | |
| 1202. |
If budget sales units are 2000, an ending inventory is 3000 units and beginning inventory is 1000, then budget production would be? |
| A. | 6000 units |
| B. | 4000 units |
| C. | no units |
| D. | 8000 units |
| Answer» C. no units | |
| 1203. |
Mathematical relationships exist between operating and financing activities that affect master budget are called? |
| A. | math plan model |
| B. | financial planning models |
| C. | operating plan models |
| D. | master plan models |
| Answer» C. operating plan models | |
| 1204. |
An act of making sure, that all employees must understand goals is classified as? |
| A. | coordination |
| B. | communication |
| C. | annual profit plan |
| D. | budgeting |
| Answer» C. annual profit plan | |
| 1205. |
Financial statements and budget plans of some companies are also called? |
| A. | cost statement |
| B. | preformed statement |
| C. | sales statement |
| D. | market statement |
| Answer» C. sales statement | |
| 1206. |
If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be? |
| A. | 4000 units |
| B. | 5000 units |
| C. | 8000 units |
| D. | 10000 units |
| Answer» D. 10000 units | |
| 1207. |
Sale of defectives is reduced from ________. |
| A. | prime cost |
| B. | works cost |
| C. | cost of production |
| D. | cost of sales |
| Answer» D. cost of sales | |
| 1208. |
Wages paid to a labour who was engaged in production activities can be termed as _______. |
| A. | direct cost |
| B. | indirect cost |
| C. | sunk cost |
| D. | imputed cost |
| Answer» B. indirect cost | |
| 1209. |
Direct cost incurred can be identified with ________. |
| A. | each department |
| B. | each unit of output |
| C. | each month |
| D. | each executive |
| Answer» C. each month | |
| 1210. |
Process cost is ascertained and recorded in ________. |
| A. | balance sheet |
| B. | profit and loss a/c |
| C. | separate statement |
| D. | separate ledger a/c |
| Answer» E. | |
| 1211. |
In goods transport service the cost unit is ________. |
| A. | cost per ton |
| B. | cost per hour |
| C. | cost per ton kilo meters |
| D. | cost per vehicle |
| Answer» D. cost per vehicle | |
| 1212. |
Relationship between cost and cost driver is economically plausible if goodness of fit |
| A. | has meaning |
| B. | has no meaning |
| C. | has index values |
| D. | has no index values |
| Answer» B. has no meaning | |
| 1213. |
In specification analysis, assumptions related to linearity states but linearity must be within |
| A. | irrelevant range |
| B. | relevant range |
| C. | significant range |
| D. | insignificant range |
| Answer» C. significant range | |
| 1214. |
Cost that has elements of variable and fixed costs at same time is |
| A. | variable cost |
| B. | mixed cost |
| C. | semi variable cost |
| D. | Both B and C |
| Answer» E. | |
| 1215. |
Third step in estimation of cost function, by using quantitative analysis is collection of data for |
| A. | cost and cost object |
| B. | price and cost driver |
| C. | dependent variable and cost driver |
| D. | independent variable and cost driver |
| Answer» D. independent variable and cost driver | |
| 1216. |
For slope coefficient b, value of estimated coefficient is considered as |
| A. | d-value |
| B. | c-value |
| C. | t-value |
| D. | b-value |
| Answer» D. b-value | |
| 1217. |
An estimation of relationship between one independent variable and dependent variable is known as |
| A. | simple regression |
| B. | Two way regression |
| C. | One variable series |
| D. | multiple regression |
| Answer» B. Two way regression | |
| 1218. |
If difference between costs linked to highest and lowest observation of cost driver is $8000 and observation of cost driver is 40 machine hours, then slope coefficient will be |
| A. | $16,000 |
| B. | $200 |
| C. | $400 |
| D. | $20,000 |
| Answer» C. $400 | |
| 1219. |
A technique which minimizes sum of squared vertical difference, to determine regression line is considered as |
| A. | negative square technique |
| B. | positive square technique |
| C. | least square technique |
| D. | most square technique |
| Answer» D. most square technique | |
| 1220. |
Method of estimation of cost function, by making opinions and analysis about cost and cost drivers is classified as |
| A. | conference method |
| B. | inference method |
| C. | pricing method |
| D. | manufacturing method |
| Answer» B. inference method | |
| 1221. |
Relationship between independent variable and dependent variable must be |
| A. | general ledger |
| B. | non-achievable |
| C. | non measureable |
| D. | economically plausible |
| Answer» E. | |
| 1222. |
In estimation of cost functions, variations in a single activity level represents the |
| A. | related total costs |
| B. | related fixed cost |
| C. | related variable cost |
| D. | related per unit cost |
| Answer» B. related fixed cost | |
| 1223. |
Work measurement method of cost estimation is also called |
| A. | price engineering method |
| B. | industrial engineering method |
| C. | measuring engineering method |
| D. | unit engineering method |
| Answer» C. measuring engineering method | |
| 1224. |
An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as |
| A. | independence of residuals |
| B. | dependence of residuals |
| C. | independence of correlation |
| D. | dependence of residuals |
| Answer» B. dependence of residuals | |
| 1225. |
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as |
| A. | weighted average method |
| B. | net present value method |
| C. | Gross production method |
| D. | net present value method |
| Answer» B. net present value method | |
| 1226. |
Cost of previous department is a part of |
| A. | transferred-in costs |
| B. | transferred-out costs |
| C. | FIFO costs |
| D. | LIFO costs |
| Answer» B. transferred-out costs | |
| 1227. |
First step in constant gross margin percentage NRV method is to allocate joint to compute |
| A. | Gross margin percentage |
| B. | total production cost of each product |
| C. | allocated joint costs |
| D. | cost of split off point |
| Answer» B. total production cost of each product | |
| 1228. |
Process costing is suitable for ________. |
| A. | hospitals |
| B. | oil reefing firms |
| C. | transport firms |
| D. | brick laying firms |
| Answer» C. transport firms | |
| 1229. |
"Which of the following statements is/are correct?1. A materials requisition note is used to record the issue of direct material to a specific job.2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost.3. The job costing method can be applied in costing batches"$ |
| A. | (1) only |
| B. | (1) and (2) only |
| C. | (1) and (3) only |
| D. | (2) and (3) only |
| Answer» D. (2) and (3) only | |
| 1230. |
"S produces and sells one product, P, for which the data are as follows:Selling price Rs 28Variable cost Rs 16Fixed cost Rs 4The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?" |
| A. | 10.1% decrease |
| B. | 11.2% decrease |
| C. | 13.3% decrease |
| D. | 16.0% decrease |
| Answer» C. 13.3% decrease | |
| 1231. |
CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is |
| A. | Rs. 6,720 |
| B. | Rs. 8400 |
| C. | Rs. 10080 |
| D. | Rs. 10500 |
| Answer» E. | |
| 1232. |
Blanket overhead rate is: |
| A. | One single overhead absorption rate for the whole factory |
| B. | Rate which is blank or nil rate |
| C. | rate in which multiple overhead rates are calculated for each production department, service department etc |
| D. | Always a machine hour rate |
| Answer» B. Rate which is blank or nil rate | |
| 1233. |
Overhead refers to: |
| A. | Direct or Prime Cost |
| B. | All Indirect costs |
| C. | only Factory indirect costs |
| D. | Only indirect expenses |
| Answer» C. only Factory indirect costs | |
| 1234. |
"Calculate workers left and discharged from the following:Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method No of workers replaced during the quarter is 80" |
| A. | 112 |
| B. | 80 |
| C. | 48 |
| D. | 64 |
| Answer» D. 64 | |
| 1235. |
Which of the following is an abnormal cause of Idle time: |
| A. | Time taken by workers to travel the distance between the main gate of factory and place of their work |
| B. | Time lost between the finish of one job and starting of next job |
| C. | Time spent to meet their personal needs like taking lunch, tea etc |
| D. | Machine break downs |
| Answer» E. | |
| 1236. |
Cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as |
| A. | bundled cost |
| B. | common cost |
| C. | stand-alone cost |
| D. | incremental cost |
| Answer» C. stand-alone cost | |
| 1237. |
Method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as |
| A. | step down allocation method |
| B. | stand-alone revenue allocation method |
| C. | incremental revenue allocation method |
| D. | revenue mix allocation method |
| Answer» C. incremental revenue allocation method | |
| 1238. |
Methods used to allocate costs of reciprocal support departments include |
| A. | direct method |
| B. | step down |
| C. | reciprocal method |
| D. | all of above |
| Answer» E. | |
| 1239. |
If employees of division A work for 8000 hours for $90 per hour, then rate must be paid in division B in accordance of single rate method will be |
| A. | $90 per hour |
| B. | less than $90 per hour |
| C. | greater than $90 per hour |
| D. | none of above |
| Answer» B. less than $90 per hour | |
| 1240. |
Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called |
| A. | step down product |
| B. | dual mix product |
| C. | bundled product |
| D. | reciprocal product |
| Answer» D. reciprocal product | |
| 1241. |
Process a/c is ________. |
| A. | nominal a/c |
| B. | a real a/c |
| C. | personal a/c |
| D. | either nominal or real a/c |
| Answer» B. a real a/c | |
| 1242. |
Which of the following item of expenses will not appear in cost accounting. |
| A. | Direct material cost |
| B. | Factory overheads |
| C. | Selling Expenses |
| D. | Loss on sale of fixed assets |
| Answer» E. | |
| 1243. |
Direct labour means ________. |
| A. | labour which can be conveniently associated with aparticular cost unit |
| B. | labour which completes the work manually |
| C. | permanent labour in the production department |
| D. | labour which is recruited directly and not through contractors |
| Answer» B. labour which completes the work manually | |
| 1244. |
Which of the following will be affected by normal loss? |
| A. | Costing profit |
| B. | Financial profit |
| C. | Process profit |
| D. | cost of Good units |
| Answer» E. | |
| 1245. |
Abnormal process loss can be transferred to ________. |
| A. | costing profit and loss a/c |
| B. | financial profit and loss a/c |
| C. | manufacturing |
| D. | trading |
| Answer» B. financial profit and loss a/c | |
| 1246. |
Input is 10,000 units and normal loss is 20% of input and abnormal loss is 400 units What is actual output? |
| A. | 7600 units |
| B. | 10,000 units |
| C. | 10, 400 units |
| D. | 12,000 units |
| Answer» B. 10,000 units | |
| 1247. |
Cost of contract and profit or loss thereon are determined by preparing ________. |
| A. | cost sheet |
| B. | profit and loss a/c |
| C. | trading a/c |
| D. | separate ledger a/c |
| Answer» E. | |
| 1248. |
________. is refers to the verification of cost accounts and check on the adherence to the cost accounting plan. |
| A. | Cost Audit |
| B. | Costcentre |
| C. | Costunit |
| D. | Costprofit |
| Answer» B. Costcentre | |
| 1249. |
Expenditure over and above prime cost is known as ________. |
| A. | overhead |
| B. | factory cost |
| C. | cost of sales |
| D. | cost of production |
| Answer» B. factory cost | |
| 1250. |
A profit centre is a centre ____________. |
| A. | Where the manager has the responsibility of generating and maximising profits |
| B. | Which is concerned with earning an adequate Return on Investment |
| C. | Both of the above |
| D. | Which manages cost |
| Answer» B. Which is concerned with earning an adequate Return on Investment | |