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.
| 101. |
............are incurred on the maintenance of material in stores and comprise of costs related to handling, obsolescence, pilferage etc. |
| A. | Carrying costs |
| B. | Ordering costs |
| C. | Either [a] or [b] |
| D. | None of the above |
| Answer» B. Ordering costs | |
| 102. |
Bin card is also known as |
| A. | Stores ledger |
| B. | stock card |
| C. | Material bill |
| D. | none of the above |
| Answer» C. Material bill | |
| 103. |
Overhead costs of operating a machine may be absorbed by using |
| A. | Rate per second of operating the machine |
| B. | Rate per minute of operating the machine |
| C. | Rate per hour of operating the machine |
| D. | Either [a] or [b] |
| Answer» D. Either [a] or [b] | |
| 104. |
...............method of costing will be suitable for oil refineries. |
| A. | Operation costing |
| B. | Process costing |
| C. | Job costing |
| D. | Batch costing |
| Answer» C. Job costing | |
| 105. |
The process of distributing an item of cost over several cost centres is known as |
| A. | Cost absorption |
| B. | cost apportionment |
| C. | Cost allocation |
| D. | None of the above |
| Answer» C. Cost allocation | |
| 106. |
A cycle manufacturing company will generally use the..................method of costing. |
| A. | Job costing |
| B. | multiple costing |
| C. | Unit costing |
| D. | process costing |
| Answer» C. Unit costing | |
| 107. |
A cost, in which payment is made to a factor of production is referred to as |
| A. | Opportunity cost |
| B. | imputed cost |
| C. | Absolute cost |
| D. | out of pocket cost |
| Answer» E. | |
| 108. |
The main objective of cost accounting is to provide information to the management for |
| A. | Planning |
| B. | decision-making |
| C. | Policy-making |
| D. | None of the above |
| Answer» C. Policy-making | |
| 109. |
Time lost in the course of normal activity is known as |
| A. | Idle time |
| B. | abnormal idle time |
| C. | Over time |
| D. | Normal idle time |
| Answer» E. | |
| 110. |
Which of the following is not premium bonus plan? |
| A. | Halsey plan |
| B. | Rowan plan |
| C. | Mericks plan |
| D. | None of these |
| Answer» D. None of these | |
| 111. |
Normally overtime payment is made at |
| A. | three times |
| B. | two times |
| C. | four times |
| D. | five times |
| Answer» C. four times | |
| 112. |
.........method of wage payment provides for high rate of efficient workers. |
| A. | Taylors differential piece rate system |
| B. | Gants task piece rate system |
| C. | Time rate system |
| D. | Piece rate system |
| Answer» B. Gants task piece rate system | |
| 113. |
Which of the following method of wage payment is most suitable where quality and accuracy of work of primary importance? |
| A. | Piece rate system |
| B. | Time rate system |
| C. | Halsey plan |
| D. | None of the above |
| Answer» C. Halsey plan | |
| 114. |
What is the basic difference between a static budget and a flexible budget? |
| A. | A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range |
| B. | A static budget is for an entire production, but a flexible budget is applicable only to a single department |
| C. | Flexible budget allow management latitude in meeting goals, whereas a static budget is based on a fixed standard |
| D. | A flexible budget considers only variable costs, but a static budget considers all costs |
| Answer» B. A static budget is for an entire production, but a flexible budget is applicable only to a single department | |
| 115. |
Direct cost clearly be........with a product. |
| A. | Identified |
| B. | apportioned |
| C. | Allocated |
| D. | located |
| Answer» B. apportioned | |
| 116. |
The cost of........... is not included in the cost of production |
| A. | Normal loss |
| B. | abnormal loss |
| C. | Scrap |
| D. | abnormal profit |
| Answer» C. Scrap | |
| 117. |
Store keeper should initiate a purchase requisition when stock reaches |
| A. | Minimum level |
| B. | maximum level |
| C. | Re-order level |
| D. | None of the above |
| Answer» D. None of the above | |
| 118. |
Standard costing is |
| A. | Technique |
| B. | method |
| C. | Process |
| D. | None of these |
| Answer» B. method | |
| 119. |
According to which of the following methods of material pricing are close to current economic values |
| A. | LIFO |
| B. | FIFO |
| C. | HIFO |
| D. | All of these |
| Answer» B. FIFO | |
| 120. |
The term cost refers to |
| A. | An asset that has given benefit and is now expired |
| B. | The price of product sold or services rendered |
| C. | The value of sacrifice made to require goods or service. |
| D. | The present value of future benefit |
| Answer» D. The present value of future benefit | |
| 121. |
Which of the following statement(s) is/are correct? I. A materials requisition note is used to record the issue of direct material to a specific job. II. 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. III. The job costing method can be applied in costing batches. |
| A. | I only |
| B. | I and II only |
| C. | I and III only |
| D. | II and III only |
| Answer» D. II and III only | |
| 122. |
In process costing, if an abnormal loss arises, the process account is generally |
| A. | Debited with the scrap value of the abnormal loss units |
| B. | Debited with the full production cost of the abnormal loss units |
| C. | Credited with the scrap value of the abnormal loss units |
| D. | Credited with the full production cost of the abnormal loss units |
| Answer» E. | |
| 123. |
Calculate the prime cost from the following information Direct material purchased: ` 100000 Direct material consumed: ` 90000 Direct labor: ` 600000 Direct expenses: ` 200000 Manufacturing overheads ` 30000 |
| A. | ` 180000 |
| B. | ` 200000 |
| C. | ` 10000 |
| D. | ` 210000 |
| Answer» D. ` 210000 | |
| 124. |
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 | |
| 125. |
Element of cost of a product are: |
| A. | Material only |
| B. | Labour only |
| C. | Expenses only |
| D. | Material, Labour and expenses |
| Answer» E. | |
| 126. |
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. | |
| 127. |
Carrying costs are otherwise called |
| A. | Ordering costs |
| B. | holding costs |
| C. | Out of stock cost |
| D. | none of the above |
| Answer» C. Out of stock cost | |
| 128. |
The quality of material to be ordered at one time |
| A. | EOQ |
| B. | EBQ |
| C. | BOQ |
| D. | EOB |
| Answer» B. EBQ | |
| 129. |
Re-order Level = Maximum Consumption\[\times \].......... |
| A. | Minimum Re order Period |
| B. | Maximum Re-order Period |
| C. | Minimum Consumption |
| D. | Maximum Consumption |
| Answer» C. Minimum Consumption | |
| 130. |
Aggregate of direct cost is known as........... . |
| A. | Direct material cost |
| B. | Direct labour cost |
| C. | Prime cost |
| D. | Factory cost |
| Answer» D. Factory cost | |
| 131. |
Marginal costing in concerned with |
| A. | Fixed costs |
| B. | variable cost |
| C. | Semi-fixed cost |
| D. | none of the above |
| Answer» C. Semi-fixed cost | |
| 132. |
Cost accounting emerged mainly on account of |
| A. | Statutory requirements |
| B. | Competition in the market |
| C. | Limitation of financial accounting |
| D. | All of the above |
| Answer» D. All of the above | |
| 133. |
The total of all direct expense is known as ...........cost. |
| A. | Prime cost |
| B. | factory cost |
| C. | Selling cost |
| D. | cost of products |
| Answer» B. factory cost | |
| 134. |
Cost accounting provides all of the following information except |
| A. | Product cost |
| B. | cost of goods sold |
| C. | Inventory values |
| D. | cash forecasts |
| Answer» E. | |
| 135. |
Cost accounting mainly helps the management in |
| A. | Earning profit |
| B. | Providing information to management |
| C. | Fixing prices of the products |
| D. | All of the above |
| Answer» C. Fixing prices of the products | |
| 136. |
In the context of standard costing basic standard is established for |
| A. | Short period |
| B. | current period |
| C. | Indefinite period |
| D. | pre-defined period |
| Answer» C. Indefinite period | |
| 137. |
The breakeven point in units is calculated using |
| A. | Fixed expenses and the contribution margin ratio |
| B. | Variable expenses and the contribution margin ratio |
| C. | Fixed expenses and the unit contribution margin |
| D. | Variable expenses and the unit contribution margin |
| Answer» D. Variable expenses and the unit contribution margin | |
| 138. |
Match the following List I List II A. Marginal cost 1. ..= Contribution\[\div \]Sales B. P/V ratio 2. Contribution = Selling price -.... C. Profit 3. ..... = Sales (1 - P/V Ratio) D. Variable costs 4. Margin of safety =..... \[\div \] P/V Ratio Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]3, B\[\to \]1, C\[\to \]4, D\[\to \]2 |
| C. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| D. | A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 |
| Answer» D. A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 | |
| 139. |
Match the following List I List II A. Absorption costing 1. .....is a logical extension of marginal costing B. Fixed expenses 2. .....is a valuable adjust to standard costing and budgetary costing C. Marginal costing 3. Contribution = ..+ Profit D. Break even analysis 4. ..is not very helpful in taking managerial decisions Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| C. | A\[\to \]3, B\[\to \]2, C\[\to \]4, D\[\to \]1 |
| D. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| Answer» B. A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 | |
| 140. |
Match the following List I List II A. Classification of costs into fixed and variable costs 1. Contribution B. Difference between sales and variable costs 2. P/V ratio C. Difference between sales at breakeven point and the total sales 3. Marginal costing D. Relative profitability 4. Margin of safety Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]1, D\[\to \]2 |
| 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\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| Answer» D. A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 | |
| 141. |
Why is profit volume ratio used? I. To compute the variable cost for any volume of sales. II. To determine breakeven point and the level of output required to earn a desired profit. III. To decide most profitable sales mix. Select the correct answer using the codes given below |
| A. | I and II |
| B. | II and III |
| C. | I and III |
| D. | All of these |
| Answer» E. | |
| 142. |
Which of the following is correct at breakeven point? |
| A. | Contribution = Fixed assets |
| B. | Sales Revenue = Total Cost - Variable Cost |
| C. | Profit = Fixed Cost + Variable Cost |
| D. | Sales Revenue = Variable Cost |
| Answer» B. Sales Revenue = Total Cost - Variable Cost | |
| 143. |
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 | |
| 144. |
Product cost is normally |
| A. | Equal in both absorption and marginal costing |
| B. | Higher in marginal costing than absorption costing |
| C. | Higher in absorption costing than marginal costing |
| D. | None of the above |
| Answer» D. None of the above | |
| 145. |
Match the following List I List II A. Labour cost variance 1. Actual hours paid (Standard rate - Actual rate) B. Labour rate variance 2. Standard cost - Actual cost C. Efficiency variance 3. Idle hours \[\times \] standard rate per hour D. Idle time variance 4. Standard rate (Standard hours - Actual hours worked) Codes |
| A. | A\[\to \]4, B\[\to \]3, C\[\to \]2, D\[\to \]1 |
| B. | A\[\to \]2, B\[\to \]3, C\[\to \]4, D\[\to \]1 |
| C. | A\[\to \]4, B\[\to \]1, C\[\to \]2, D\[\to \]3 |
| D. | A\[\to \]2, B\[\to \]1, C\[\to \]4, D\[\to \]3 |
| Answer» E. | |
| 146. |
An increase in fixed costs will result, in which of the following? |
| A. | A decrease in the contribution-sales ratio |
| B. | A decrease in the contribution per point |
| C. | An increase in the breakeven point sales level |
| D. | An increase in the margin of safety |
| Answer» D. An increase in the margin of safety | |
| 147. |
Which one of the following cost would not be termed as product costs? |
| A. | Administrative salaries |
| B. | Direct labour |
| C. | Indirect material |
| D. | Plant supervisors salary |
| Answer» B. Direct labour | |
| 148. |
The margin of safety may be defined as |
| A. | The point at which breakeven point sales are achieved |
| B. | The excess of planned sales over the current actual sales |
| C. | The extent to which sales revenue exceeds fixed costs |
| D. | The difference between planned sales and breakeven point sales |
| Answer» E. | |
| 149. |
What is the effect of increase in fixed cost? |
| A. | Reduces profit volume ratio |
| B. | Raises breakeven point |
| C. | Increases margin of safety |
| D. | Reduces contribution |
| Answer» C. Increases margin of safety | |
| 150. |
Which of the following is not the function of DBMS in context to accounting system? |
| A. | Forms |
| B. | Querying |
| C. | Control |
| D. | Creating table |
| Answer» C. Control | |