MCQOPTIONS
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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 901. |
_ The basis for the payment of cash by contractee under contract is ________.$? |
| A. | work certified |
| B. | work uncertified |
| C. | contract cost |
| D. | value of plant used in the contract |
| Answer» B. work uncertified | |
| 902. |
_ Overhead cost is the total of ________.$? |
| A. | all indirect costs |
| B. | all direct costs |
| C. | indirect and direct costs |
| D. | all specific costs |
| Answer» B. all direct costs | |
| 903. |
_ First step in estimation of cost function by using quantitative analysis is to$? |
| A. | choose price estimation method |
| B. | choose dependent variable |
| C. | choose independent variable |
| D. | choose cost estimation method |
| Answer» C. choose independent variable | |
| 904. |
_ In adjustment issues of costing, database must consider wide range values of$? |
| A. | fixed object |
| B. | cost driver |
| C. | cost object |
| D. | mixed object |
| Answer» C. cost object | |
| 905. |
_ In plotting of cost functions, level of activities according to which charged cost is represented on$? |
| A. | x-axis |
| B. | y-axis |
| C. | unit axis |
| D. | term axis |
| Answer» B. y-axis | |
| 906. |
_ In estimation of cost function, an example of independent variable is$? |
| A. | level of activity |
| B. | quantity stored |
| C. | quantity manufactured |
| D. | quality of product |
| Answer» B. quantity stored | |
| 907. |
_ To decide whether cost is variable cost or fixed cost with respect to some specific activity depends upon$? |
| A. | units of labour |
| B. | unit of production |
| C. | time horizon |
| D. | units of inventory |
| Answer» D. units of inventory | |
| 908. |
_ Factor used to predict dependent variable is named as$? |
| A. | independent variable |
| B. | function variable |
| C. | evaluation variable |
| D. | estimation variable |
| Answer» B. function variable | |
| 909. |
_ An analysis and estimation method of cost, by classifying cost accounts as fixed or variable with respect for specific output level is considered as$? |
| A. | manufacturing analysis method |
| B. | price analysis method |
| C. | unit analysis method |
| D. | account analysis method |
| Answer» E. | |
| 910. |
_ Better fit between estimated cost and actual observations is represented by$? |
| A. | variable residual terms |
| B. | smaller residual terms |
| C. | larger residual terms |
| D. | zero residual terms |
| Answer» C. larger residual terms | |
| 911. |
_ In linear cost function which is y=a + bx, objective is to find the$? |
| A. | values of a and b |
| B. | values of x and y |
| C. | values of a and x |
| D. | values of b and y |
| Answer» B. values of x and y | |
| 912. |
_ If difference in costs is $7000 and difference in machine hours of is $18000, then slope coefficient would be$? |
| A. | 2.571 |
| B. | 0.39 |
| C. | 0.2571 |
| D. | 3.39 |
| Answer» C. 0.2571 | |
| 913. |
_ Regression Analysis Method of quantitative analysis of cost function considers$? |
| A. | all data points |
| B. | One data point |
| C. | Two data points |
| D. | Four data points |
| Answer» B. One data point | |
| 914. |
_ Worse fit between estimated cost and actual observations is shown on regression line with$? |
| A. | larger residual terms |
| B. | zero residual terms |
| C. | variable residual terms |
| D. | smaller residual terms |
| Answer» B. zero residual terms | |
| 915. |
_ If residual error is 25 and predicted cost value is 50, then observed cost value would be$? |
| A. | 100 |
| B. | 25 |
| C. | 50 |
| D. | 75 |
| Answer» E. | |
| 916. |
_ In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as$? |
| A. | partial inventory costing method |
| B. | current period inventory method |
| C. | Last-in, first-out method |
| D. | First-in, first-out method |
| Answer» E. | |
| 917. |
_ Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as$? |
| A. | conversion process |
| B. | operation |
| C. | hybridization |
| D. | both a and b |
| Answer» C. hybridization | |
| 918. |
_ Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called$? |
| A. | conversion expense costing system |
| B. | inventory costing system |
| C. | process costing system |
| D. | job costing system |
| Answer» D. job costing system | |
| 919. |
_ If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are$? |
| A. | 1800 units |
| B. | 1500 units |
| C. | 1300 units |
| D. | 1500 units |
| Answer» D. 1500 units | |
| 920. |
_ A joint cost allocation method is based on relative value of total sales, at point of split off is classified as$? |
| A. | sales value at split off method |
| B. | joint costs at split off point method |
| C. | joint products value at split off method |
| D. | main product cost at split off method |
| Answer» B. joint costs at split off point method | |
| 921. |
_ The cost which is to be incurred even when a business unit is closed is a _____.$? |
| A. | imputed cost |
| B. | historical cost |
| C. | sunk cost |
| D. | shutdown cost |
| Answer» E. | |
| 922. |
_ A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job?$? |
| A. | Rs 489 |
| B. | Rs 606 |
| C. | Rs 996 |
| D. | Rs 1300 |
| Answer» C. Rs 996 | |
| 923. |
_ "Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete.If 11,750completed units were transferred out, what was the closing inventory in Process B?"$? |
| A. | Rs 6562.50 |
| B. | Rs 12,250.00 |
| C. | Rs 14,437.50 |
| D. | Rs 25,375.00 |
| Answer» D. Rs 25,375.00 | |
| 924. |
_ "BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values.RsMarch 60,000April 70,000May 55,000June 65,00040% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is"$? |
| A. | Rs. 60,532 |
| B. | Rs. 61,120 |
| C. | Rs. 66,532 |
| D. | Rs. 86,620 |
| Answer» B. Rs. 61,120 | |
| 925. |
_ "During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working.What was the standard cost per labour hour?"$? |
| A. | Rs. 14 |
| B. | Rs. 1650 |
| C. | Rs. 1750 |
| D. | Rs. 18 |
| Answer» B. Rs. 1650 | |
| 926. |
_ Which of the following is not a method of cost absorption?$? |
| A. | Percentage of direct material cost |
| B. | Machine hour rate |
| C. | Labour hour rate |
| D. | Repeated distribution method |
| Answer» E. | |
| 927. |
_ "Calculate the labour turnover rate according to replacement method from the following:No of workers on the payroll:- At the beginning of the month: 500- At the end of the month: 600During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Ofthese, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme"$? |
| A. | 0.0455 |
| B. | 182 |
| C. | 6 |
| D. | 3 |
| Answer» C. 6 | |
| 928. |
_ Labour turnover means:$? |
| A. | Turnover generated by labour |
| B. | Rate of change in composition of labour force during a specified period |
| C. | Either of the above |
| D. | Both of the above |
| Answer» C. Either of the above | |
| 929. |
_ Cost of abnormal wastage is:$? |
| A. | Charged to the product cost |
| B. | Charged to the profit & loss account |
| C. | charged partly to the product and partly profit & loss account |
| D. | not charged at all |
| Answer» C. charged partly to the product and partly profit & loss account | |
| 930. |
__Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as__ |
| A. | complete reciprocal costs |
| B. | artificial costs |
| C. | operating costs |
| D. | flexible operating costs |
| Answer» B. artificial costs | |
| 931. |
__A particular term for which specific revenue measurement is required is known as__ |
| A. | revenue allocation |
| B. | revenue object |
| C. | revenue increment |
| D. | reciprocal revenue |
| Answer» C. revenue increment | |
| 932. |
__Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as__ |
| A. | revenue allocation |
| B. | revenue object |
| C. | revenue increment |
| D. | reciprocal revenue |
| Answer» B. revenue object | |
| 933. |
__According to incremental method, party which receives highest ranking in allocation of common cost is classified as__ |
| A. | Third incremental party |
| B. | second incremental party |
| C. | primary party |
| D. | First incremental party |
| Answer» D. First incremental party | |
| 934. |
__Approaches to allocate costs of support department do not include__ |
| A. | sales mix allocation method |
| B. | dual-rate cost-allocation method |
| C. | single rate cost allocation method |
| D. | both b and c |
| Answer» E. | |
| 935. |
__Operating cost is usually ascertained through ________.__ |
| A. | a ledger account |
| B. | profit and loss a/c |
| C. | balance sheet |
| D. | a statement |
| Answer» E. | |
| 936. |
__Cost accounting differs from financial accounting in respect of ________.__ |
| A. | reporting of cost |
| B. | ascertainment of cost |
| C. | control of cost |
| D. | recording of cost |
| Answer» C. control of cost | |
| 937. |
__If the actual loss is more than the estimated normal loss, then it is _________.__ |
| A. | abnormal loss |
| B. | normal loss |
| C. | seasonal loss |
| D. | abnormal gain |
| Answer» B. normal loss | |
| 938. |
__When output of earlier process is transferred at a profit to the subsequent process, it is ________.__ |
| A. | inter departmental profit |
| B. | abnormal gain |
| C. | inter process profit |
| D. | manufacturing profit |
| Answer» D. manufacturing profit | |
| 939. |
__If any by-product is produced and sold it is credited to ________.__ |
| A. | profit and loss a/c |
| B. | by-product a/c |
| C. | process a/c |
| D. | abnormal gain a/c |
| Answer» D. abnormal gain a/c | |
| 940. |
__Job costing method is the most suitable method for ________.__ |
| A. | oil process units |
| B. | transport companies |
| C. | sugar industries |
| D. | repair shops |
| Answer» E. | |
| 941. |
__The amount paid to sub-contractor is ________.__ |
| A. | subtracted from the contract price |
| B. | debited to contract a/c |
| C. | credited to contract a/c |
| D. | added with the contract price |
| Answer» C. credited to contract a/c | |
| 942. |
__________ is a preventive function.__ |
| A. | Costreduction |
| B. | Costcontrol |
| C. | Costunit |
| D. | Costcentre |
| Answer» C. Costunit | |
| 943. |
__Most appropriate basis for the apportionment of power is ________.__ |
| A. | no of labour |
| B. | no of output |
| C. | no of machines |
| D. | horse power of machines |
| Answer» E. | |
| 944. |
__Cost Unit is defined as:__ |
| A. | Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed |
| B. | A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control |
| C. | Centres having the responsibility of generating and maximising profits |
| D. | Centres concerned with earning an adequate return on investment |
| Answer» B. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control | |
| 945. |
__Conversion cost includes cost of converting……… into ……__ |
| A. | Raw material, WIP |
| B. | Raw material, Finished goods |
| C. | WIP, Finished goods |
| D. | Finished goods, Saleable goods |
| Answer» C. WIP, Finished goods | |
| 946. |
__"Total cost of a product: Rs 10,000.Profit: 25% on Selling PriceProfit is:"__ |
| A. | Rs. 2,500 |
| B. | Rs. 3,000 |
| C. | Rs. 3,333 |
| D. | Rs. 2,000 |
| Answer» D. Rs. 2,000 | |
| 947. |
__Re-order level is calculated as:__ |
| A. | Maximum consumption x Maximum re-order period |
| B. | Minimum consumption x Minimum re-order period |
| C. | 1/2 of (Minimum + Maximum consumption) |
| D. | Maximum level - Minimum level |
| Answer» B. Minimum consumption x Minimum re-order period | |
| 948. |
__An example of shrinkage costs is__ |
| A. | incoming freight |
| B. | storage costs |
| C. | insurance |
| D. | clerical errors |
| Answer» E. | |
| 949. |
__Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as__ |
| A. | carrying costs |
| B. | purchasing costs |
| C. | stock-out costs |
| D. | ordering costs |
| Answer» B. purchasing costs | |
| 950. |
__Cost of product failure, error prevention and appraisals can be classified under__ |
| A. | stocking costs |
| B. | stock-out costs |
| C. | costs of quality |
| D. | shrinkage costs |
| Answer» D. shrinkage costs | |