MCQOPTIONS
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MCQOPTIONS
This section includes 743 Mcqs, each offering curated multiple-choice questions to sharpen your Teaching knowledge and support exam preparation. Choose a topic below to get started.
| 551. |
If there is any debit balance in profit and loss account, it is shown as |
| A. | a deduction from reserves |
| B. | no treatment |
| C. | an addition to reserves |
| D. | None of the above |
| Answer» B. no treatment | |
| 552. |
Freight inward appearing in trial balance is shown |
| A. | on the debit side of profit and loss account |
| B. | on the debit side of trading account |
| C. | on the liabilities side of balance sheet |
| D. | on the asset side of the balance sheet |
| Answer» C. on the liabilities side of balance sheet | |
| 553. |
Heavy advertising to launch a new product is a |
| A. | capital expenditure |
| B. | revenue expenditure |
| C. | deferred revenue expenditure |
| D. | None of the above |
| Answer» D. None of the above | |
| 554. |
Liability of sole trader is |
| A. | limited |
| B. | unlimited |
| C. | undecided |
| D. | qualified |
| Answer» C. undecided | |
| 555. |
Total amount of liabilities side include the following |
| A. | authorised capital |
| B. | issued capital |
| C. | subscribed capital |
| D. | paid-up capital |
| Answer» E. | |
| 556. |
The excess of debit in trading account is called |
| A. | Net loss |
| B. | net profit |
| C. | Gross loss |
| D. | gross profit |
| Answer» D. gross profit | |
| 557. |
Salary paid to supervisor is an example of |
| A. | Selling overhead |
| B. | Production overhead |
| C. | Manufacturing overhead |
| D. | Administrative overhead |
| Answer» D. Administrative overhead | |
| 558. |
Administrative overheads include |
| A. | audit and legal fees . |
| B. | Office rent, rates and taxes |
| C. | Salaries of administrative staff |
| D. | All of the above |
| Answer» E. | |
| 559. |
Which of the following item(s) is/are included in overheads? |
| A. | Depreciation on office furniture |
| B. | Rent of office building |
| C. | Electricity charges of office |
| D. | All of the above |
| Answer» E. | |
| 560. |
...............are incurred every time an order is placed and include cost of placing an order, transportation cost, cost of inspecting goods etc. |
| A. | Storage costs |
| B. | Ordering costs |
| C. | Either [a] or [b] |
| D. | None of the above |
| Answer» C. Either [a] or [b] | |
| 561. |
The quantity of material which is ordered at the time of placing an order is referred to as |
| A. | ABC quantity |
| B. | Minimum quantity |
| C. | Maximum quantity |
| D. | economic order quantity |
| Answer» E. | |
| 562. |
In ............ method, the price of the oldest available stock is taken as the issue price. |
| A. | Weighted average |
| B. | LIFO |
| C. | FIFO |
| D. | HIFO |
| Answer» D. HIFO | |
| 563. |
............... is a technique of cost control. |
| A. | Marginal costing |
| B. | Standard costing |
| C. | Job costing |
| D. | Contract costing |
| Answer» C. Job costing | |
| 564. |
The ascertainment of costs after they had been incurred is known as |
| A. | Differential costing |
| B. | Replacement costing |
| C. | Historical costing |
| D. | predetermined costing |
| Answer» D. predetermined costing | |
| 565. |
Total costs of direct material, labour and expenses are included in |
| A. | Distribution cost |
| B. | prime cost |
| C. | Selling cost |
| D. | development cost |
| Answer» C. Selling cost | |
| 566. |
In which of the following method of wage payment, wages on time basis are not guaranteed? |
| A. | Halsey plan |
| B. | Rowan plan |
| C. | Taylors differential piece rate system |
| D. | None of the above |
| Answer» D. None of the above | |
| 567. |
If the minimum stock level is 3000 units and re-order quantity are 2000 units. What is the average stock level? |
| A. | 5000 |
| B. | 4000 |
| C. | 3000 |
| D. | 6000 |
| Answer» C. 3000 | |
| 568. |
............is a unit of quantity in term of which cost is ascertained. |
| A. | Cost centre |
| B. | Cost unit |
| C. | Profit centre |
| D. | Price centre |
| Answer» C. Profit centre | |
| 569. |
Prime cost comprises the following combination of costs |
| A. | Direct materials and factory overhead |
| B. | Direct labour and factory overhead |
| C. | Direct material, direct labour and direct expense |
| D. | None of the above |
| Answer» C. Direct material, direct labour and direct expense | |
| 570. |
Overhead consists of all the following except |
| A. | Indirect materials |
| B. | Direct-labour |
| C. | Store-keepers |
| D. | none of the above |
| Answer» C. Store-keepers | |
| 571. |
Information concerning A Ltd's single product is as follows Selling price ` 6 per unit, Variable production cost ` 1.20 per unit, Variable selling cost ` 0.40 per unit, Fixed production cost ` 4 per unit, Fixed selling cost ` 0.80 per unit. Budgeted production and sales for the year are ` 10000 units. What is the companys breakeven point? |
| A. | 8000 units |
| B. | 8333 units |
| C. | 10000 units |
| D. | 10909 units |
| Answer» E. | |
| 572. |
What is the most useful information derived from a break even chart? |
| A. | Relationship between revenue and costs at various levels of output |
| B. | Volume or output level at which ;the enterprises break even |
| C. | Amount of sales revenue needed to cover enterprise variable costs |
| D. | Amount of sales revenue needed to cover enterprise fixed costs |
| Answer» C. Amount of sales revenue needed to cover enterprise variable costs | |
| 573. |
When is a business unit known to be a profit centre? |
| A. | If its operations or departments are not directly involved in revenue generating activities, but instead focus on elements of cost control |
| B. | If its management is evaluated not only on revenues and expenses, but also on asset investment |
| C. | If its management is compensated based on the level of profitability |
| D. | If its management is held accountable for both revenues and expenses and has the authority to make decision regarding its products, markets and source of supply |
| Answer» E. | |
| 574. |
One of the basic differences between marginal costing and absorption costing is regarding the treatment of |
| A. | Direct material |
| B. | variable overheads |
| C. | Fixed overheads |
| D. | prime cost |
| Answer» D. prime cost | |
| 575. |
EOQ is calculated as........... |
| A. | \[\frac{2ca}{l}\] |
| B. | \[\sqrt{\frac{2\,pq}{l}}\] |
| C. | \[\sqrt{\frac{ca}{l}}\] |
| D. | \[\sqrt{\frac{2\,Pc}{l}}\] |
| Answer» B. \[\sqrt{\frac{2\,pq}{l}}\] | |
| 576. |
In deciding the EOQ the cost of inventory should be |
| A. | Minimum |
| B. | optimum |
| C. | Maximum |
| D. | All of these |
| Answer» B. optimum | |
| 577. |
Minimum Level + Consumption during the lead time is called........ |
| A. | Re-order Level |
| B. | EOQ |
| C. | Maximum Stock Level |
| D. | Maximum Level |
| Answer» B. EOQ | |
| 578. |
The value of benefit sacrificed in favour of an alternative course of action as known as |
| A. | Variable cost |
| B. | fixed cost |
| C. | Opportunity cost |
| D. | None of the above |
| Answer» D. None of the above | |
| 579. |
...........in the aggregate of indirect material, indirect labour and indirect expense. |
| A. | Prime cost |
| B. | Factory cost |
| C. | Overhead |
| D. | Labour cost |
| Answer» D. Labour cost | |
| 580. |
Prime cost can be also called |
| A. | Indirect cost |
| B. | direct cost |
| C. | Fixed cost |
| D. | opportunity cost |
| Answer» C. Fixed cost | |
| 581. |
...........is denned as the guidance and regulation by executive action of cost of operating on undertaking. |
| A. | Cost reduction |
| B. | Cost control |
| C. | Cost estimation |
| D. | Cost centre |
| Answer» C. Cost estimation | |
| 582. |
Salary paid to factory manager is an item of |
| A. | prime cost |
| B. | factory overhead |
| C. | Selling overhead |
| D. | none of the above |
| Answer» C. Selling overhead | |
| 583. |
Aggregate of prime cost and factory overhead is |
| A. | Work on cost |
| B. | work cost |
| C. | Cost of production |
| D. | prime cost |
| Answer» C. Cost of production | |
| 584. |
A variable such as activity that causes cost over a given time is |
| A. | Cost driver |
| B. | cost behaviour |
| C. | Cost centre |
| D. | None of the above |
| Answer» C. Cost centre | |
| 585. |
The main purpose of cost accounting is to |
| A. | Assist management in decision-making |
| B. | maximise profits and minimise losses |
| C. | Comply norms issued by the Government of India from time to time |
| D. | Prepare cost accounts in line with the accounting standards |
| Answer» E. | |
| 586. |
Consider the following statements I. Marginal costing and absorption costing are the same. II. For decision-making, absorption costing is more suitable than marginal costing. III. Cost volume profit relationship also denote breakeven point. VI. Marginal costing is based on the distinction between fixed and variable costs. Which of the statements given above are correct? |
| A. | I and II |
| B. | II and III |
| C. | III and IV |
| D. | IV and II |
| Answer» E. | |
| 587. |
Which of the following pairs is/are correctly matched? |
| A. | Difference between sales and total cost is profit - Absorption costing |
| B. | Fixed costs recovered from contribution - Standard costing |
| C. | Both [a] and [b] |
| D. | None of the above |
| Answer» B. Fixed costs recovered from contribution - Standard costing | |
| 588. |
Under marginal costing, only ......costs are charged to products. |
| A. | Fixed |
| B. | variable |
| C. | Both [a] and [b] |
| D. | None of the above |
| Answer» C. Both [a] and [b] | |
| 589. |
Match the following List I List II A. Excess of actual sales over the break even sales volume 1. Contribution B. Sum of fixed cost and profit 2. Cost volume profit analysis C. Break even chart 3. Unaffected by change in output D. Breakeven point 4. Margin of safety Codes |
| A. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| B. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| Answer» B. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 590. |
Match the following List I List II A. Variable costing 1. Absorption costing B. Valuation of stock is higher 2. Fixed costs excluded from inventory valuation C. Marginal and differential costs are same 3. Marginal costing D. Marginal costing 4. No change in fixed cost Codes |
| A. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| B. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| C. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| D. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| Answer» C. A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 | |
| 591. |
Which inventory costing method is based on the assumption that costs should be charged against revenue in the order, in which they were incurred? |
| A. | Perpetual inventory |
| B. | LIFO |
| C. | FIFO |
| D. | Average cost |
| Answer» D. Average cost | |
| 592. |
Which of the following are advantages of marginal costing? I. Pricing decision II. True profit III. Difficult to classify IV. Ignores time value V. Break even analysis VI. Contribution is not final VII. Control over expenditure Select the correct answer using the codes given below |
| A. | I, II, V and VII |
| B. | I, III, V and VII |
| C. | III, IV, VI and VII |
| D. | I, II, VI and VII |
| Answer» B. I, III, V and VII | |
| 593. |
Prime cost plus factory overhead cost is |
| A. | conversion cost |
| B. | production cost |
| C. | total cost |
| D. | cost of goods sold |
| Answer» C. total cost | |
| 594. |
Breakeven point is |
| A. | Where total revenue equals total costs |
| B. | Where total contribution equals variable costs |
| C. | Where total revenue equals fixed costs |
| D. | All of the above |
| Answer» B. Where total contribution equals variable costs | |
| 595. |
Under the marginal costing concept/unit product cost would most likely be increased by |
| A. | a decrease in the number of units produced |
| B. | an increase in the number of units produced |
| C. | an increase in the commission paid to salesman for each units sold |
| D. | a decrease in the commission paid to salesman for each units sold |
| Answer» D. a decrease in the commission paid to salesman for each units sold | |
| 596. |
Which budget is prepared first of all? |
| A. | Cash budget |
| B. | Master budget |
| C. | Budget for the key factor |
| D. | Flexible budget |
| Answer» D. Flexible budget | |
| 597. |
Match the following List I List II A. Overhead efficiency variance 1. Power failure B. Overhead volume variance 2. Appointing low grade employees C. Labour idle time variance 3. Poor working condition D. Labour efficiency variance 4. Working days being more or less than budgeted Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]3 |
| B. | A\[\to \]3, B\[\to \]4, C\[\to \]1, D\[\to \]2 |
| C. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| D. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| Answer» C. A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 | |
| 598. |
In which costing method, the fixed factory overhead are added to inventory valuation? |
| A. | Marginal costing |
| B. | Absorption costing |
| C. | Both [a] and [b] |
| D. | None of the above |
| Answer» C. Both [a] and [b] | |
| 599. |
The first electronic computer was developed in |
| A. | 1920 |
| B. | 1930 |
| C. | 1935 |
| D. | 1940 |
| Answer» E. | |
| 600. |
The 'word length' of a computer is measured in |
| A. | Byte |
| B. | milimeter |
| C. | Meter |
| D. | bits |
| Answer» B. milimeter | |