Explore topic-wise MCQs in UGC-NET.

This section includes 2331 Mcqs, each offering curated multiple-choice questions to sharpen your UGC-NET knowledge and support exam preparation. Choose a topic below to get started.

2051.

The labour rate variance can be calculated by the following equation:

A. (Standard hours - actual hours) x actual wage rate
B. (Standard wage rate - actual wage rate) x standard hours worked
C. (Standard wage rate - actual wage rate) x actual hours worked
D. Budgeted labour costs - actual labour costs
Answer» B. (Standard wage rate - actual wage rate) x standard hours worked
Discussion
2052.

------------ is also known as ‘Transaction Costing’.

A. Target costing
B. Kaizen costing
C. Throughput costing
D. Activity based costing
Answer» E.
Discussion
2053.

----------- is maximum permissible cost in a competitive business environment.

A. Activity cost
B. Target cost
C. Kaizen cost
D. None of these
Answer» C. Kaizen cost
Discussion
2054.

Which of the following is the best explanation of the relevance of equivalent production units in process costing?

A. A means of equalising production charged into stock each period.
B. The conversion partly completed units into an equivalent number of completed units in order that costs may be shared on an equitable basis.
C. The expression of losses in terms of an equivalent number of units of good production in order that their value may be calculat
Answer» C. The expression of losses in terms of an equivalent number of units of good production in order that their value may be calculat
Discussion
2055.

Which one of the following items is relatively unimportant in decision making?

A. Relevant costs
B. Net cash flow
C. Opportunity costs
D. Accruals and prepayments
Answer» E.
Discussion
2056.

What is the minimum cost below which a company would be unwilling to price a one-off special contract?

A. Between variable cost and total cost
B. Total cost
C. Variable cost
D. Below variable cost
Answer» D. Below variable cost
Discussion
2057.

Accumulated cost of an activity called------------ in Activity based costing.

A. Cost driver
B. Cost object
C. Cost centre
D. Cost Pool
Answer» E.
Discussion
2058.

Purchased materials are added in the second department of a three-department process, this order doesnot increase the number of units produced in the second department and would:

A. Not change the amount transferred to the next department.
B. Decrease total work in process inventory.
C. Increase the factory overhead portion of the ending work-in-process inventory.
D. Increase total unit cost.
Answer» E.
Discussion
2059.

Which of the following cost classification categories is almost identical to a relevant cost?

A. Opportunity cost
B. Sunk cost
C. Committed cost
D. Avoidable cost
Answer» E.
Discussion
2060.

Cost accounting emerged mainly on account of:

A. Statutory requirements
B. Competition in the market
C. Labour unrest
D. Limitations of financial accounting
Answer» E.
Discussion
2061.

Materials may not be put into process

A. At the beginning of an operation
B. Continuously
C. At the end of the operation
D. In the shipping department.
Answer» E.
Discussion
2062.

When average costing is used, the opening inventory costs are

A. Kept separate from the costs for the new period
B. Added to the costs of the new period
C. Subtracted from the new costs
D. Averaged with other costs to arrive at total cost.
Answer» B. Added to the costs of the new period
Discussion
2063.

The type of process loss that should not affect the cost of inventory is

A. Abnormal loss
B. Seasonal loss
C. normal loss
D. standard loss
Answer» B. Seasonal loss
Discussion
2064.

A standard that represents the most likely scenario can be referred to as the:

A. Average standard
B. Attainable standard
C. Basic standard
D. Ideal standard
Answer» C. Basic standard
Discussion
2065.

What term is given to the idea that traditional budgeting should be replaced by a new type of budgeting?

A. Behavioural budgeting
B. Beyond budgeting
C. Flexible budgeting
D. Better budgeting
Answer» C. Flexible budgeting
Discussion
2066.

An equivalent unit of material or conversion cost is equal to:

A. The amount of material conversion cost necessary to complete one unit of production.
B. A unit of work-in-process inventory.
C. The amount of material or conversion cost necessary to start a unit of production into work in process inventory.
D. Fifty percent of material or conversion cost of a unit to finished goods inventory.
Answer» B. A unit of work-in-process inventory.
Discussion
2067.

Which costs may normally be ignored when determining whether to close a factory for a short period?

A. Fixed costs
B. Opportunity costs
C. Variable costs
D. Total costs
Answer» B. Opportunity costs
Discussion
2068.

Abnormal loss is charged to--------------

A. process account
B. costing profit and loss account
C. Normal loss account
D. None of these.
Answer» C. Normal loss account
Discussion
2069.

A cost centre is:

A. The part of the business where all costs are paid to suppliers
B. A production department where all production costs are aggregated
C. An area for which costs are accumulated
D. An area of the business accountable for both costs and revenues
Answer» D. An area of the business accountable for both costs and revenues
Discussion
2070.

A just in time manufacturing system should lead to:

A. A wider range of stock items being made available
B. An increase in the number of suppliers of stocks.
C. Higher levels of stock being held in the warehouse
D. Lower stock holding costs being incurred
Answer» E.
Discussion
2071.

Indian Railways must adopt----------

A. Operating costing
B. Unit costing
C. Batch costing
D. Multiple costing
Answer» B. Unit costing
Discussion
2072.

The standard cost of a product is:

A. The average unit cost of products produced during a particular period
B. The unit cost of products incurred at the start of a particular period
C. The average unit cost of products produced in the previous period
D. The planned unit cost of products produced during a particular period
Answer» E.
Discussion
2073.

What is the ideal transfer price?

A. Market price
B. Total cost
C. Total cost less internal savings
D. Opportunity cost
Answer» E.
Discussion
2074.

A disadvantage of FIFO costing is that

A. The first units produced cannot be distinguished from later production.
B. Several units’ costs are used at the same time.
C. The units have to be kept separate
D. The shipping costs are higher
Answer» C. The units have to be kept separate
Discussion
2075.

Trimmings in timber industry should be treated as a---------

A. Waste
B. Spoilage
C. Scrap
D. Defectives
Answer» D. Defectives
Discussion
2076.

Promoters of Activity based Costing was /were----------

A. Kaplan and Cooper
B. Galloway
C. Goldratt
D. Ouchy
Answer» B. Galloway
Discussion
2077.

The formula for calculating the variable overhead total variance is:

A. (Standard hours less actual hours) x variable overhead absorption rate
B. Actual variable overhead less (actual hours x actual hours worked x variable overhead absorption rate)
C. Actual variable overhead expenditure less budgeted variable overhead expenditure
D. Actual variable overhead less (standard hours x actual production x variable overhead absorption rate)
Answer» C. Actual variable overhead expenditure less budgeted variable overhead expenditure
Discussion
2078.

Upstream cost, Down stream cost etc., are the concepts in---------------.

A. Target costing
B. Kaizen costing
C. Life cycle costing
D. Activity based costing
Answer» D. Activity based costing
Discussion
2079.

Mines `A’ and `B’ are at a distance of 10 kms and 15 kms from the factory. The cost per tonne-km incase of mine A is Rs. 3 while it is R. 2.5 in case of mine B. The factory should procure coal from------------

A. Mine A only
B. Mine B only
C. Both from mines A and B in the ration of 3: 2
D. Can’t decide.
Answer» B. Mine B only
Discussion
2080.

Which of the following method of costing can be used in a large oil refinery?

A. Process costing
B. Unit costing
C. Operating costing
D. Job costing
Answer» B. Unit costing
Discussion
2081.

The efficiency ratio can be defined as:

A. Actual hours worked / budgeted labour hours
B. Standard hours produced/ actual labour hours worked
C. Standard hours produced / budgeted labour hours
D. Actual hours worked / actual production based on standard hours
Answer» B. Standard hours produced/ actual labour hours worked
Discussion
2082.

When calculating cost variances under a standard costing system we must:

A. Compare standard costs with actual costs at the standard level of activity
B. Compare actual costs with those that were budgeted
C. Compare actual costs with standard costs at the actual level of output
D. Compare actual outputs against budgeted outputs
Answer» E.
Discussion
2083.

Hospitals must make use of-----------

A. Operating costing
B. Batch costing
C. Process costing
D. Multiple costing
Answer» B. Batch costing
Discussion
2084.

In case of steam company, the cost per unit is calculated on the basis of---------

A. Total quantity of lbs. produced
B. Total quantity of kwh generated
C. Total quantity of tones produced
D. Any of the above.
Answer» B. Total quantity of kwh generated
Discussion
2085.

Public utility undertakings must invariably adopt---------

A. Operating costing
B. Output costing
C. Contract costing
D. Multiple costing
Answer» E.
Discussion
2086.

The formula for calculating the fixed overhead volume variance is:

A. Budgeted fixed expenditure less (actual hours x actual production x fixed overhead absorption rate)
B. Budgeted fixed expenditure less (actual hours x fixed overhead absorption rate)
C. Actual fixed overhead less (standard hours x actual production x fixed overhead absorption rate)
D. Budgeted fixed expenditure less (standard hours x actual production x fixed overhead expenditure variance)
Answer» E.
Discussion
2087.

During July actual labour costs amounted to 19,800, the standard rate of pay was 4.50 per hourand the labour rate variance amounted to 225 adverse. The actual hours worked were:

A. 4,400
B. 1,012
C. 4,350
D. 3,450
Answer» B. 1,012
Discussion
2088.

Which of the following is /are support activity in Value Chain Analysis?

A. Procurement
B. Firms’ infrastructure
C. HRM
D. All of these.
Answer» E.
Discussion
2089.

Flight/Air services must make use of-----------

A. Job costing
B. Operating costing
C. Batch costing
D. Process costing
Answer» C. Batch costing
Discussion
2090.

Classification and accumulation of costs by fixed and variable costs is a distinctive feature of-----------

A. Process costing
B. Unit costing
C. Operating costing
D. Batch costing
Answer» D. Batch costing
Discussion
2091.

---------- cost is also known as hypothetical or notional cost.

A. Opportunity cost
B. Out of pocket cost
C. Imputed cost
D. Relevant cost
Answer» D. Relevant cost
Discussion
2092.

Financial Accounting is concerned with the:

A. recording of business expenses and revenues
B. recording of the cost of products and services
C. recording of day-to-day business transactions
D. none of the above
Answer» D. none of the above
Discussion
2093.

The company which applied first ‘Just in Time’ in its manufacturing is---------

A. GE Electricals
B. Motorola
C. Toyota
D. Suzuki
Answer» D. Suzuki
Discussion
2094.

Which of the following is not an advantage of standard costing?

A. It provides a basis for sensible cost comparisons
B. It enables managers to employ management by exception
C. It provides a mean of performance evaluation and employee rewards
D. It is usually less expensive than actual or normal costing
Answer» D. It is usually less expensive than actual or normal costing
Discussion
2095.

Advantages of cost accounting system accrue:

A. only to workers
B. only to government
C. only to consumers
D. to management, workers, consumers and government
Answer» E.
Discussion
2096.

In process costing, costs follow

A. Price rise
B. Product flow
C. Price declines
D. Finished goods
Answer» C. Price declines
Discussion
2097.

Life Cycle Costing is advocated by---------

A. R. Kaplan
Answer» D.
Discussion
2098.

Lean manufacturing can be achieved by using-----------

A. Activity based costing
B. Target costing
C. Just in Time
D. Life cycle costing
Answer» D. Life cycle costing
Discussion
2099.

JIT was first developed by:

A. Taiichi Ohno
B. Ouchy
C. Kaplan
D. None of these
Answer» B. Ouchy
Discussion
2100.

----------- is developed on the concept ‘inventory is evil’.

A. Quality circle
B. JIT
C. Kaizen
D. All of these
Answer» C. Kaizen
Discussion