MCQOPTIONS
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MCQOPTIONS
This section includes 78 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
In inter process profits, the output of one process is transferred from one process to another not at .but at . |
| A. | market price, actual cost |
| B. | actual cost, market price |
| C. | both a& b |
| D. | none of these |
| Answer» C. both a& b | |
| 52. |
..................... is the smallest segment of activity or area or responsibility for which costs are accumulated. |
| A. | cost object |
| B. | cost centre |
| C. | cost driver |
| D. | none of the above |
| Answer» C. cost driver | |
| 53. |
The per unit expense of the portion factory overhead varies with the volume of production while ..........................portion remains the same with volume. |
| A. | fixed, variable |
| B. | variable, fixed |
| C. | variable, semi-variable |
| D. | none of these |
| Answer» B. variable, fixed | |
| 54. |
In costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year: |
| A. | multiple |
| B. | process |
| C. | operation |
| D. | single. |
| Answer» D. single. | |
| 55. |
In transport costing...........................charges vary more or less in direct proportion to kilometers run. |
| A. | running |
| B. | petrol |
| C. | drivers salary |
| D. | tax |
| Answer» B. petrol | |
| 56. |
When .is used on the basis of budgeted overheads and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads. |
| A. | a predetermined rate |
| B. | actual rate method of absorption |
| C. | both a & b |
| D. | none of these |
| Answer» B. actual rate method of absorption | |
| 57. |
Expenses incurred during production other than direct materials and direct labour are called ..factory expenses; those charged to production on estimated basis are called . |
| A. | actual, applied |
| B. | applied, actual |
| C. | indirect, direct |
| D. | none of these |
| Answer» B. applied, actual | |
| 58. |
budget is the preparation of budget starting from a clean state. |
| A. | performance |
| B. | zero base |
| C. | cash |
| D. | none of these |
| Answer» C. cash | |
| 59. |
............. .process loss should be transferred to costing profit & loss account. |
| A. | abnormal |
| B. | normal |
| C. | both a& b |
| D. | none of these |
| Answer» B. normal | |
| 60. |
Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is |
| A. | job costing |
| B. | operating costing |
| C. | process costing |
| D. | both b and c |
| Answer» D. both b and c | |
| 61. |
For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be . |
| A. | 40 |
| B. | 37.50 |
| C. | 35 |
| D. | none of these |
| Answer» C. 35 | |
| 62. |
The loss incurred on an incomplete contract is transferred to .account. |
| A. | costing profit and loss account |
| B. | profit and loss account |
| C. | trading account |
| D. | deferred to next year. |
| Answer» C. trading account | |
| 63. |
.obviates the necessity for the physical checking of all items of stores at the end of the year and thereby avoids dislocation ofproduction. |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» E. | |
| 64. |
When the completion stage of a contract is less than , the total expenditure on the contract is transferred to...............................account. |
| A. | work-in-progress |
| B. | profit and loss account |
| C. | miscellaneous account |
| D. | none of these |
| Answer» B. profit and loss account | |
| 65. |
Material losses due to abnormal reasons should be transferred to |
| A. | profit and loss account |
| B. | costing profit and loss account |
| C. | trading account |
| D. | none of these |
| Answer» C. trading account | |
| 66. |
are costs which have been applied against revenue of particular accounting period. |
| A. | expenses |
| B. | income |
| C. | loss |
| D. | none of these |
| Answer» B. income | |
| 67. |
is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory |
| A. | abc analysis |
| B. | jit inventory system |
| C. | ved analysis |
| D. | perpetual inventory system |
| Answer» C. ved analysis | |
| 68. |
Average unit cost for each process is calculated by dividing the ..by |
| A. | total cost, number of units |
| B. | total process cost, number of units in process |
| C. | total process cost, number of finished goods |
| D. | total cost, number of units produced |
| Answer» C. total process cost, number of finished goods | |
| 69. |
.budget may be classified into material cost budget, labour cost budget and overhead budget. |
| A. | cost of production |
| B. | purchase |
| C. | sales |
| D. | cash |
| Answer» B. purchase | |
| 70. |
.represents that quantity of material which is normally ordered when a particular material reaches reordering level. |
| A. | maximum level |
| B. | re-order level |
| C. | minimum level |
| D. | re-order quantity |
| Answer» E. | |
| 71. |
When actual loss is................than the estimated loss, the difference between the two is considered to be abnormal gain |
| A. | more |
| B. | less |
| C. | higher |
| D. | none of these |
| Answer» C. higher | |
| 72. |
..is most suitable when quality of work is of prime importance. |
| A. | piece rate system |
| B. | time wage system |
| C. | both a & b |
| D. | none of these |
| Answer» C. both a & b | |
| 73. |
When actual loss is..........................than the estimated loss, the difference between the two is considered to be abnormal loss. |
| A. | more |
| B. | less |
| C. | both a & b) |
| D. | none of these |
| Answer» B. less | |
| 74. |
Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be .. |
| A. | abnormal loss |
| B. | normal loss |
| C. | abnormal gain |
| D. | normal gain |
| Answer» D. normal gain | |
| 75. |
First in first out method of valuing material issues is suitable in times of |
| A. | rising prices |
| B. | falling prices |
| C. | fluctuating prices |
| D. | none of these |
| Answer» C. fluctuating prices | |
| 76. |
Average cost method of valuing material issues is suitable when . |
| A. | prices rise |
| B. | prices fall |
| C. | prices fluctuate considerably |
| D. | none of these |
| Answer» D. none of these | |
| 77. |
Inflated price method of valuing material issues is suitable when |
| A. | materials are subject to natural wastage |
| B. | prices rise |
| C. | prices fall |
| D. | none of these |
| Answer» B. prices rise | |
| 78. |
Market price method is considered to be the best method when .. |
| A. | quotations have to be sent |
| B. | prices fluctuate |
| C. | materials are subject to natural wastage |
| D. | none of these |
| Answer» B. prices fluctuate | |