Explore topic-wise MCQs in Cost Accounting.

This section includes 12 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.

1.

The following details have been extracted from the debtors collection records of X limited:

A. rs. 1,16,750
B. rs. 1,15,190
C. rs. 1,23,000
D. rs. 1,21,440
Answer» E.
Discussion
2.

A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under :

A. rs. 9,21,600
B. rs. 8,56,800
C. rs. 6,87,150
D. rs. 9,09,900
Answer» C. rs. 6,87,150
Discussion
3.

PP Ltd is preparing the production and material purchase budgets for one of their products,

A. 31225
B. 30000
C. 28775
D. 38225
Answer» B. 30000
Discussion
4.

ABC Ltd. has prepared the cash budget for the year 2014-2015 and provided the following information pertaining to sales value :

A. rs. 2,78,400
B. rs. 3,00,000
C. rs. 3,20,000
D. rs. 3,32,000
Answer» B. rs. 3,00,000
Discussion
5.

ABC Ltd. has furnished the following information for 4,000 units of product for the year 2014-2015 :

A. rs. 10,80,120
B. rs. 10,42,500
C. rs. 10,95,000
D. rs. 10,76,665
Answer» E.
Discussion
6.

A company has the following budget for the six month:

A. 21,700 kg
B. 20,900 kg
C. 21,100 kg
D. 21,500 kg
Answer» B. 20,900 kg
Discussion
7.

ABC ltd. uses the following flexible budget formula to annual maintenance cost:

A. rs. 12,800
B. rs. 13,360
C. rs. 12,240
D. rs. 13,600
Answer» C. rs. 12,240
Discussion
8.

A company is preparing a production budget for the next year. The following information is relevant :

A. 8,900 units
B. 9,900 units
C. 11,000 units
D. 10,900 units
Answer» D. 10,900 units
Discussion
9.

Which of the following items should be included in a cash budget?

A. (i) and (ii)
B. (iii) and (iv)
C. (ii) and (iii)
D. (i) and (iv)
Answer» E.
Discussion
10.

Which of the following is / are true with regard to the period of budget?

A. only (i) above
B. only (ii) above
C. both (i) and (ii) above
D. all (i), (ii) and (iii) above
Answer» E.
Discussion
11.

Which of the following are purpose of a budget?

A. (i) and (ii) only
B. (ii), (iii) and (iv) only
C. (i) and (iv) only
D. (ii) and (iv) only
Answer» E.
Discussion
12.

The CIMA definition of zero-based budgeting is set out below, with two blank sections.

A. to be specifically justifies,&were being undertaken for the first time
B. to be set zero, &could be out-sourced to an external supplier
C. to be specifically justifies,&could be out-sourced to an external supplier
D. to be set zero,&were being undertaken for the first time
Answer» B. to be set zero, &could be out-sourced to an external supplier
Discussion