Explore topic-wise MCQs in Finance & Accounting.

This section includes 410 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.

1.

Which of the following is not a function of Cost Accountancy?

A. Cost Control
B. Cost Ascertainment
C. Cost Analysis
D. Cost Accounting
Answer» D. Cost Accounting
Discussion
2.

Costing is a technique of

A. Recording of Cost transactions
B. Ascertaining Cost
C. Preparation of final accounts
D. Decision making
Answer» C. Preparation of final accounts
Discussion
3.

Depreciation on building is an example of

A. Committed Costs
B. Policy and Managed Costs
C. Discretionary Costs
D. Step Costs
Answer» B. Policy and Managed Costs
Discussion
4.

Excise duty is an example of

A. Chargeable expense
B. Factory overhead
C. Administrative overhead
D. Non-cost item
Answer» B. Factory overhead
Discussion
5.

Carriage outward is a part of

A. Office and Administrative overhead
B. Factory overhead
C. Selling and Distribution overhead
D. Prime Cost
Answer» D. Prime Cost
Discussion
6.

Which of the following is not a method of costing?

A. Process Costing
B. Batch Costing
C. Direct Costing
D. Operating Costing
Answer» D. Operating Costing
Discussion
7.

Payment of Royalties is

A. Direct Expenses
B. Administrative Cost
C. Charged to Profit & Loss A/c
D. Factory Overheads
Answer» B. Administrative Cost
Discussion
8.

Cost of free samples and gifts are included in

A. Prime Cost
B. Factory Overhead
C. Office and Administrative Overheads
D. Selling & Distribution Overheads
Answer» E.
Discussion
9.

Which of the following is a Cost Control Technique?

A. Marginal Costing
B. Uniform Costing
C. Standard Costing
D. Absorption Costing
Answer» D. Absorption Costing
Discussion
10.

Which of the following is not a technique of costing?

A. Managerial Costing
B. Process Costing
C. Standard Costing
D. Budgetary Costing
Answer» E.
Discussion
11.

Which one of the following is not a cost unit?

A. Kilo watt hour
B. Credit division
C. Patient day
D. Tonne-mile
Answer» C. Patient day
Discussion
12.

When the volume of output is increased then the per unit fixed cost will be

A. increase in the proportion of output.
B. decrease in the reverse proportion of output
C. changed but not in proportion of output.
D. unchanged
Answer» C. changed but not in proportion of output.
Discussion
13.

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

A. Financial Accounting
B. Management Accounting 26
C. Cost Accounting
D. Cost Accountancy
Answer» D. Cost Accountancy
Discussion
14.

When re-ordering level is 200 units, minimum usage is 20 units, minimum lead time is 5 days,maximum stock is 400 units then re-ordering quantity will be:

A. 400 units
B. 200 units
C. 300 units
D. 100 units
Answer» D. 100 units
Discussion
15.

Which method of costing is used for determination of costs for printing industry?

A. Process costing
B. Operating costing
C. Batch costing
D. Job costing
Answer» E.
Discussion
16.

On the basis of “Relationship with accounting period” costs are classified as

A. Historical Costs and Pre-determined Costs.
B. Capital Costs and Commercial Costs.
C. Capital Costs and Revenue Costs.
D. Product Costs and Period Costs
Answer» D. Product Costs and Period Costs
Discussion
17.

Opportunity cost is the best example of

A. Sunk cost
B. Standard cost
C. Relevant cost
D. Irrelevant cost
Answer» D. Irrelevant cost
Discussion
18.

Bad debts are included as

A. Direct expenses
B. Distribution overhead
C. Cost of production
D. Selling overhead
Answer» E.
Discussion
19.

In the situation of increasing prices, the valuation of closing stock is more under:

A. Simple average
B. Weighted average
C. FIFO
D. LIFO
Answer» D. LIFO
Discussion
20.

Costs are classified between direct and indirect costs according to method of classificationby

A. Nature or Element
B. Functions
C. Degree of traceability to product
D. Change in Activity or Volume
Answer» D. Change in Activity or Volume
Discussion
21.

The written down value of the abandoned plant less its salvage value is

A. Imputed cost
B. Sunk cost
C. Avoidable Cost
D. Opportunity cost
Answer» C. Avoidable Cost
Discussion
22.

Which one is included in financial accounts but not in cost accounts?

A. Royalty
B. Dividend paid
C. Excise duty
D. Carriage and freight
Answer» C. Excise duty
Discussion
23.

Interest on own capital is

A. Cash Cost
B. Notional Cost
C. Part of Prime Cost
D. Semi-Variable Cost
Answer» C. Part of Prime Cost
Discussion
24.

Which of the following is not a Relevant Cost?

A. Replacement Cost
B. Sunk Cost
C. Marginal Cost
D. Standard Cost
Answer» C. Marginal Cost
Discussion
25.

Direct Expenses are also known as

A. Overhead Expenses
B. Process Expenses
C. Chargeable Expenses
D. None of the above
Answer» D. None of the above
Discussion
26.

Costs are classified into fixed costs, variable costs and semi-variable costs, it is known as

A. Behavioural classification
B. Classification according to controllability
C. Functional classification
D. Element wise classification
Answer» B. Classification according to controllability
Discussion
27.

Which of the following ‘CAS’ is related to “Pollution Cost”?

A. CAS - 11
B. CAS - 13
C. CAS - 14
D. CAS – 17
Answer» D. CAS – 17
Discussion
28.

Direct Wages 2,05,000 and Factory Cost 5,60,000. If the ratio of direct wages and factoryoverhead is 5 : 3 then Direct Material Cost will be

A. 2,32,000
B. 3,50,000
C. 3,41,667
D. 2,24,000
Answer» B. 3,50,000
Discussion
29.

Which of the following costing method is suitable for Toy Making Industry?

A. Contract Costing
B. Process Costing
C. Job Costing
D. Batch Costing
Answer» C. Job Costing
Discussion
30.

Indirect material cost is a part of

A. Prime Cost
B. Factory Overhead
C. Chargeable Expenses
D. None of the above
Answer» C. Chargeable Expenses
Discussion
31.

Prime cost plus factory overheads is known as

A. Marginal Costing
B. Conversion Cost
C. Commercial Cost
D. Factory Cost
Answer» E.
Discussion
32.

A technique and process of ascertaining costs is known as

A. Cost
B. Costing
C. Cost Accounting
D. Cost Accountancy
Answer» C. Cost Accounting
Discussion
33.

All indirect costs are termed as

A. Prime cost
B. Factory cost
C. Conversion cost
D. Overheads
Answer» E.
Discussion
34.

Which of the following is a suitable cost unit for the BPO Services/Call Centers?

A. Cost per item
B. Cost per hour
C. Cost per account handled
D. Cost per minute
Answer» D. Cost per minute
Discussion
35.

CAS-21 is related to

A. Cost Accounting Standard on Overburden Removal Cost.
B. Cost Accounting Standard on Interest and Financing Charges
C. Cost Accounting Standard on Joint Cost
D. Cost Accounting Standard on Quality Control
Answer» E.
Discussion
36.

The works cost plus administration expenses represents 27

A. Total cost
B. Cost of Production
C. Cost of sales
D. Factory cost
Answer» C. Cost of sales
Discussion
37.

Which of following is appropriate Cost Unit for timber industry?

A. Per tonne
B. Per article
C. Per Kg.
D. Per foot
Answer» E.
Discussion
38.

Notional cost is also known as

A. Variable cost
B. Imputed cost
C. Opportunity cost
D. Out of Pocket cost
Answer» C. Opportunity cost
Discussion
39.

Advertisement costs are termed as

A. Direct Expenses
B. Cost of Production
C. Selling Overhead
D. Distribution Overhead
Answer» D. Distribution Overhead
Discussion
40.

Cost of staff services is an example of

A. Committed Costs
B. Policy and Managed Costs
C. Discretionary Costs
D. Step Costs
Answer» C. Discretionary Costs
Discussion
41.

In behavioural analysis, costs are divided into

A. Production and Non-Production costs
B. Controllable and Non-Controllable costs
C. Direct and indirect costs
D. Fixed and Variable costs
Answer» E.
Discussion
42.

Statement showing break up of costs is known as

A. Cost sheet
B. Tender
C. Production account
D. Statement of profit
Answer» B. Tender
Discussion
43.

The costs are differentiated between fixed and variable costs under

A. Marginal Costing
B. Direct Costing
C. Standard Costing
D. Absorption Costing
Answer» B. Direct Costing
Discussion
44.

Which of the following is a part of both Prime cost and Conversion cost?

A. Direct Material
B. Indirect Labour
C. Direct Labour
D. All of the above
Answer» D. All of the above
Discussion
45.

Process cost is very much applicable in

A. Construction industry
B. Pharmaceutical industry
C. Airline company
D. Printing industry
Answer» C. Airline company
Discussion
46.

Which of the following term is excluded from the cost accounts?

A. Income tax
B. Interest on debenture
C. Cash discount
D. All of the above
Answer» E.
Discussion
47.

Over which the following costs, management is likely to have least control?

A. Wages cost
B. Building Insurance cost
C. Machinery Breakdown cost
D. Advertisement cost
Answer» D. Advertisement cost
Discussion
48.

Cost reduction -

A. Long term phenomena
B. It challenges the standards.
C. It is carried out without compromising the quality.
D. All of the above
Answer» E.
Discussion
49.

Variable costs are fixed

A. depend upon the entity
B. for a period
C. per unit
D. for a particular process of production
Answer» D. for a particular process of production
Discussion
50.

Prime cost may be correctly termed as 24

A. the total of all cost items which can be directly charged to product units.
B. the sums of all direct materials and labour cost excluding all other cost.
C. the total costs incurred in producing a finished unit.
D. the sum of the large cost in product cost.
Answer» B. the sums of all direct materials and labour cost excluding all other cost.
Discussion