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Account for Manager Online Assignment Set 8
Account MCQ Part A
Q1. Cost estimation include(s) the following expenditure(s)
(A) Pattern making
(B) Tool making
(C) Selling expenses
(D) all of the above
Ans: D
Q2. To calculate the probable cost of the product, knowledge of following factors involves
(A) Production time required
(B) Use of previous estimates of comparable parts
(C) Effect of change in facilities on costing rates
(D) All of the above
Ans: D
Q3. Cost accounting is a specialized branch of accounting which deals with
(A) Classification, recording, allocation and control of costs
(B) Classification, processing, allocation and directing
(C) Classification, recording, planning and control of costs
(D) Classification, recording, allocation and directing
Ans: A
Q4. Expenditure incurred on material, labour, machinery, production and inspection are summed up to find the
(A) Total cost of product
(B) Selling price of product
(C) Factory cost of product
(D) None of the above
Ans: C
Q5. Which of the following calculate the actual cost of product
(A) Cost estimation
(B) Costing
(C) Both (A) and (B)
(D) None of the above
Ans: B
Q6. The cost data provide invaluable information for taking the following managerial decision(s)
(A) To make or buy
(B) To own or hire fixed asset
(C) Determining the expansion or contraction policy
(D) All of the above
Ans: D
Q7. The method of unit costing is adopted by
(A) Transport services
(B) Steel industry
(C) Mines
(D) Bicycle industry
Ans: C
Q8.__ costing is a type of job costing.
(A) Multiple
(B) Operating
(C) Unit
(D) Batch
Ans: D
Q9. The following is cost of direct materials
(A) Freight charges
(B) Grease
(C) Coolant
(D) Cotton waste
Ans: A
Q10. The following is cost of indirect materials
(A) Lubricating oil
(B) Octopi
(C) Import duties
(D) Insurance
Ans: A
Q11. The payment made to the following is cost of direct labour.
(A) Machinist
B) Supervisor
(C) Inspector
(D) Sweeper
Ans: A
Q12. Cost of preparing drawings for the manufacture of a particular product is
(A) Cost of direct labour
(B) Cost of indirect labour
(C) Direct expenses
(D) Indirect expenses
Ans: D
Q13. The following is also known as overhead costs or on costs.
(A) Cost of direct labour
(B) Cost of indirect labour
(C) Direct expenses
(D) Indirect expenses
Ans: D
Q14. To control costs it is essential to keep control on
(A) Prime cost
(B) Overheads
(C) Indirect materials and tools cost
(D) All of the above
Ans: D
Answers:
Q15. Which of the following is not an inventory?
(A)Machines
(B)Raw material
(C)Finished products
(D)Consumable tools
Ans: A
Q16. The following classes of costs are usually involved in inventory decisions except
(A)Cost of ordering
(B)Carrying cost
(C)Cost of shortages
(D)Machining cost
Ans: D
Q17. The cost of insurance and taxes are included in
(A)Cost of ordering
(B)Set up cost
(C)Inventory carrying cost
(D)Cost of shortages
Ans: C
Q18. Buffer stock’ is the level of stock
(A)Half of the actual stock
(B)At which the ordering process should start
(C)Minimum stock level below which actual stock should not fall
(D)Maximum stock in inventory
Ans: C
Q19. The minimum stock level is calculated as
(A)Reorder level – (Normal consumption x Normal delivery time)
(B)Reorder level + (Normal consumption x Normal delivery time)
(C)Reorder level + Normal consumption) x Normal delivery time
(D)Reorder level + Normal consumption) / Normal delivery time
Ans: A
Q20. Which of the following is true for Inventory control?
(A)Economic order quantity has minimum total cost per order
(B)Inventory carrying costs increases with quantity per order
(C)Ordering cost decreases with lo size
(D)All of the above
Ans: D
Q21. The time period between placing an order its receipt in stock is known as
(A)Lead time
(B)Carrying time
(C)Shortage time
(D)Over time
Ans: A
Q22. Re-ordering level is calculated as
(A)Maximum consumption rate x Maximum re-order periods
(B)Minimum consumption rate x Minimum re-order period
(C)Maximum consumption rate x Minimum re-order period
(D)Minimum consumption rate x Maximum re-order period
Ans: A
Q23. Average stock level can be calculated as
(A)Minimum stock level + ½ of Re-order level
(B)Maximum stock level + ½ of Re-order level
(C)Minimum stock level + 1/3 of Re-order level
(D)Maximum stock level + 1/3 of Re-order level
Ans: A
Q24. The order cost per order of an inventory is Rs. 400 with an annual carrying cost of Rs. 10 per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is
(A) 400
(B) 440
(C) 480
(D) 500
Ans: A
Q25. Cost of product failure, error prevention and appraisals are classified as
(A) Stocking costs
(B) stock-out costs
(C)costs of quality
(D) None of the above
Ans: C
Q26.__ is the recording of the attendance of a worker.
(A)Time Booking
(B) Time Keeping
(C) Job Card
(D)Clock card
Ans: A
Q27. _ is the recording particulars of work done or time spent on each job, process or operation.
(A)Time booking
(B)Time keeping
(C) Clock card
(D) Job Card
Ans: A
Q28. The most popular and simplest form of time keeping is maintaining a __ in which the employee signs on his arrival and departure.
( A)Clock card
(B)Disc method
( C)Manual register
(D)Job Card
Ans: C
Q29. Efficient time booking helps to minimize _.
(A) Idle time
(B)Profit
(C)Productivity MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon
(D)Units produced
Ans: A
Q30. A sound wage system should ensure _ guaranteed wages to each worker.
(A)Maximum
(B)Minimum
(C)Poor
(D)Units produced
Ans: B
Q31.__ is the price of compensation or consideration paid for labour and services offered by the workers.
(A)Bonus
(B)Remuneration
(C)Fees
(D)Units produced
Ans: B
Q32________ card is meant for a job which involves many operations or stages of completion.
(A)Time and Job card
(B)Job ticket
(C)Labour cost card
(D)Job Card
Ans: C
Q33.__ wage rate system is applied where quality of work is more important than the quantity.
(A)Piece rate
(B)Time rate
(C)Halsey premium plan
(D)Job Card
Ans: B
Q34. Under _ wage rate system the workers are paid on the basis of unit of output.
(A)Rowan premium plan
(B)Time
(C)Piece MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon
(D)Profit
Ans: C
Q35. Under Taylor’s Differential Piece Rate System, the standard time for a job is fixed up by __ study.
(A)Time
(B)Motion
(C)Tome and Motion
(D)Profit
Ans: C
Q36. _ pays the same amount of bonus to beginners and the efficient workers.
(A)Taylor’s Differential Plan
(B)Halsey Premium Plan
(C)Rowan Premium Plan
(D)Profit
Ans: C
Q37. Under __ plan financial security is ensured as less efficient workers are assured of their time wages.
(A)Rowan Premium Plan
(B)Taylor’s Differential Plan
(C)Halsey Premium Plan
(D)Piece MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon
Ans: C
Q38. Piece rate wages are computed by multiplying number of units produced by __.
(A)Rate per hour
(B)Rate per unit
(C)Rate per day
(D)Motion
Ans: C
Q39. Time rate wages are computed by multiplying _ by rate per hour.
(A)Units produced
(B)Standard hours fixed
(C)Actual hours worked MCQ by Dr.S.R.Pagare, K.J.Somaiya College, Kopargaon
(D)Motion
Ans: C
Q40For computing _ in percentage, the actual production is divided by standard production and multiplied by 100.
(A)Inefficiency
(B)Efficiency
(C)Idle time
(D)Motion
Ans: B
Q41. Which of the following cost is also known as overhead cost or on cost?
(A) cost Of Direct Labour
(B)Cost Of Indirect Labour
(C)Direct Expenses
(D)Indirect Expenses
Ans: D
Q42. Which of the following calculate the actual cost of product?
(A)Cost Estimation
(B)Costing
(C)Both A and B
(D)None of These
Ans: B
Q43. Costing is specialized branch of accounting which deals with:
(A)Classification, Recording, Allocation, and Control Of Asset
(B)Classification, Processing, Allocation and Directing
(C)Classification, Recording, Planning and Control Of Asset
(D)Classification, Recording, Allocation and Directing
Ans: A
Q44. In cinema halls, composite cost unit is ____:
(A)A Seat per Show
(B)Cost of Screening
(C)Salary of Staff
(D)Rent of Cinema Hall
Ans: A
Q45The stage of production at which separate products are identified is known as ___:
(A)Process Costing
(B)Reverse Cost Method
(C) Subsequent Cost
(D)Equivalent Production
Ans: C
Q46._________ in contracts entitles a contractor to suitably enhance the contract price if the cost rises beyond a given percentage:
(A)Notional Price
(B)Indirect Cost
(C) Estimate
(D) Escalation Claus
Ans: D
Q47. Which factor that cause change in cost of activity?
(A)Activity Cost
(B)Driver Rates
(C)Cost Pool
(D)Cost Drivers
Ans: D
Q48. Over-absorption of factory overheads, due to inefficiency of management, should be disposed of by:
(A) Carry Forward To Next Year
(B)Supplementary Rate
(C)Transfer to Costing P&L A/C
(D)Any of These
Ans: C
Q49. When absorbed overheads are rs.23, 540 and actual overheads are rs.22,400, there is:
(A) Under Absorption of Rs.1, 140
(B) Under Absorption of Rs.45, 940
(C) Over Absorption of Rs.1, 140
(D)Over Absorption of Rs.45940
Ans: B
Q50. Danger level= Normal consumption X _________
(A)Reorder Period
(B)Maximum Reorder Period
(C)Maximum Reorder Period in Emergency
(D)Minimum Reorder Period
Ans: C
Q51. The following is(are) the overhead cost(s)
(A) Factory expenses
(B) Selling expenses
(C) Distribution expenses
(D) All of the above
Ans: D
Q52. All such expenses which are incurred for creating and enhancing the demands for the products are
(A) Selling expenses
(B) Administrative expenses
(C) Distribution expenses
(D) All of the above
Ans: A
Q53. Prime cost=
(A) Cost of direct labour + cost of direct material + direct expenses
(B) Cost of indirect labour + cost of indirect material + direct expenses
(C) Cost of direct labour + cost of direct material + indirect expenses
(D) Cost of indirect labour + cost of direct material + indirect expenses
ANS:A
Q54. Factory Cost =
(A) Prime cost + factory expenses
(B) Prime cost + administrative expenses
(C) Prime cost + selling expenses
(D) Prime cost + distribution expenses
Ans: A
Q55. Manufacturing cost=
(A) Factory cost + selling cost
(B) Factory cost + distribution cost
(C) Factory cost + administrative expenses
(D) None of the above
Ans: C
Q56The following is (are) the method(s) to increase profit
(A) Increase the sales price
(B) Increase the market
(C) Reduce total cost
(D) All of the above
Ans: D
Q57. Which of the following is variable cost?
(A) Salaries of higher officers
(B) Prime cost
(C) Insurance cost
(D) Repair cost
Ans: B
Q58. Which of the following is not a method of calculating (allocating) overhead cost?
(A) Percentage on prime cost
(B) Percentage on direct labour cost
(C) Percentage on indirect labour cost
(D) Percentage on direct material cost
Ans: C
Q59. The following method is an improvement over the percentage on direct labour cost method.
(A) Machine hour rate
(B) Percentage on prime cost
(C) Percentage on direct material cost
(D) Man hour rate
Ans: D
Q60. The overhead cost for a particular job =
(A) Man hour rate x man hours spent on that job
(B) Man hour rate / man hours spent on that job
(C) Man hour rate + man hours spent on that job
(D) Man hour rate – man hours spent on that jab
Ans: A
Q61. Labour cost per product is Rs. 2/hr and time taken by each product is 2 hr. The factory overhead is 20% of the labour costs. The factory cost for 100 products if material cost per product is Rs. 3, is.
(A) Rs. 700
(B) Rs. 740
(C) Rs. 780
(D) Rs. 820
Ans: C
Q62. The following is (are) true for variable costs
(A) Variable costs are the functions of output
(B) Variable costs vary directly with the quantity produced
(C) These become zero when the production is suspended
(D) All of the above
Ans: D
Q63. The following cost helps in taking ‘make or buy’ decision.
(A) Standard cost
(B) Marginal cost
(C) Differential cost
(D) Sunk cost
Ans: C
Q64. To control costs it is essential to keep control on
(A) Prime cost
(B) Overheads
(C) Indirect materials and tools cost
(D) All of the above
ANS:D
Q65. All of the following would most likely use a job order costing system except:
(A)A Dental Practice.
(B)An Auto Repair Shop.
(C)A Small Appliance Maker.
(D)An Architectural Firm
Ans: C
Q66.Which of the following costs is not charged to Work in Process in a normal cost system?
(A)Actual Overhead
(B)Actual Direct Materials
(C)Actual Direct Labor
(D)Estimated Indirect Labor
Ans: A
Q67. Which of the following product costs would be Charged to Work in Process assuming a standard
Costing system?
(A)Actual Direct Material Costs
(B)Actual Overhead Costs
(C)Actual Direct Labor Costs
(D)Applied Overhead Costs
Ans: D
Q68. Which of the following serves at a subsidiary Ledger for the Work in Process account?
(A)Standard Cost Card
(B)Material Requisition Form
(C)Job Requisition Form
(D)Job Order Cost Sheet
ANS:D
Q69.Which of the following is not a source document used in job order costing systems?
(A)Cost of Production Report
(B)Employee Time Sheet
(C)Job Cost Sheet
(D)Material Requisition Form
Ans: A
Q70. Which of the following costing systems does not involve computing cost variances?
(A)Actual Costing System
(B)Normal Costing System
(C)Standard Costing System
(D)All Of The Above Systems Involve Computing Cost Variances
Ans: A
Q71. Actual costs are:
(A)The Costs Incurred
(B)Budgeted Costs
(C)Estimated Costs
(D)Forecasted Cost
Ans: A
Q72. Budgeted costs are:
(A) The Costs Incurred This Year
(B)The Costs Incurred Last Year
(C) Lanned or Forecasted Costs
(D) Competitor’s Costs
Ans: C
Q73. All of the following are true EXCEPT that indirect
Costs:
(A)May Be Included In Prime Costs
(B)Are Not Easily Traced To Products or Services
(C) Vary With the Selection of the Cost Object
(D) May Be Included In Manufacturing Overhead
Ans: A
Q74. The general term used to identify both the tracing
And the allocation of accumulated costs to a cost
Object is:
(A) Cost accumulation
(B) Cost assignment
(C) Cost tracing
(D) Conversion costing
Ans: B
Q75. The collection of accounting data in some
Organized way is:
(A) Cost accumulation
(B) Cost assignment
(C) Cost tracing
(D) Conversion costing
Ans: A
Account MCQ Part B
Q1. “Direct material , Direct labour and direct expneses combinnly called “
( )a. Factory cost
( )b. Office cost
( )c. Total cost
( )d. Prime cost [ans]
Q2. “Expenditure incurred on material, labour, machinery, production and inspection are summed up to find the”
( )a. Total cost of product
( )b. Selling Price
( )c. Factory cost of product [Ans]
( )d. None of the above
Q3. “If profit is 1,00,000 and Profit volume ratio is 40% then what will be margin of safety: “
( )a. 250000
( )b. 40000 [Ans]
( )c. 2500
( )d. 400
Q4. “In cinema halls, composite cost unit is”
( )a. seat per show [Ans]
( )b. Cost of screening
( )c. Salary of staff
( )d. Rent of cinema hall
Q5. “When absorbed overheads are Rs.23,540 and actual overheads are Rs.22,400, there is:”
( )a. “Under absorption of rs.1,140”
( )b. “Under absorption of rs.45,940” [Ans]
( )c. “Over absorption of rs.1,140”
( )d. Over absorption of rs.45940
Q6. A manager who is responsible for only cost of company belongs to
( )a. cost center [Ans]
( )b. revenue center
( )c. Profit center
( )d. A. investment center
Q7. Abnormal loss is charged to
( )a. Unit Produced
( )b. Profit and loss account [Ans]
( )c. sold unit
( )d. non of the above
Q8. At break even point fixed cost equal to
( )a. Profit
( )b. variable cost
( )c. sales
( )d. Contribution [Ans]
Q9 At EQO
( )a. carring cost and storage cost will be maximum
( )b. carring cost and storage cost will be minimum
( )c. 1 and 2
( )d. None of the above [Ans]
Q10. Break even point is point where
( )a. Fixed = to variable cost
( )b. variable cost = to sales
( )c. sales= total cost [Ans]
( )d. All of the above
Q11. Cost estimation include(s) the following expenditure(s)
( )a. pattern making
( )b. Tools Making
( )c. selling expenses
( )d. All of the above [Ans]
Q12. Cost of Normal wastage is bear by
( )a. Profit and loss
( )b. Good unit produced
( )c. Costing profit and loss account [Ans]
( )d. None of the above
Q13. Cost of preparing drawings for the manufacture of a particular product is
( )a. Cost of direct labour
( )b. Cost of indirect labour
( )c. Direct expenses
( )d. Indirect expenses [Ans]
Q14. Costing is specialized branch of accounting which deals with
( )a. “Classification, recording, allocation, and control of asset” [Ans]
( )b. “Classification, processing, allocation and directing”
( )c. “Classification, recording, planning and control of asset”
( )d. “Classification, recording, allocation and directing”
Q15. Danger level= Normal consumption X .
( )a. Reorder period
( )b. Maximum Reorder period
( )c. Maximum Reorder period in emergency [Ans]
( )d. Minimum Reorder period
Q16. Depreciation on delevery van is
( )a. factory overhead
( )b. Office overhead
( )c. Selling overheads
( )d. Distribution overheads [Ans]
Q17. EOQ is always better
( )a. TRUE
( )b. Falls
( )c. none of the above [Ans]
( )d. All of the above
Q18. Fixed cost + Variable cost =
( )a. Break even point
( )b. Sales- Profit
( )c. Profit+ Sales
( )d. non of the above [Ans]
Q19. In ABC analysis of inventory the value Category A is
( )a. Highest [Ans]
( )b. Lowest
( )c. Midium
( )d. non of the above
Q20. In case of tranport company which method of costing is better
( )a. Unit costing
( )b. Process costing
( )c. Operating costing [Ans]
( )d. Job costing
Q21. Labour price variance also called
( )a. Rate variance
( )b. Cost variance
( )c. efficiency variance
( )d. Non of the above [Ans]
Q22. Labour Turnover means
( )a. Appointment of new labour
( )b. Replacement of labour
( )c. 1 and 2 [Ans]
( )d. All of the above
Q23. Margin of safety is
( )a. sales- cost
( )b. Sales – total cost
( )c. Fixed cost + variable cost
( )d. Sales – Break even sales [Ans]
Q24. Method of valuation of inentory effect
( )a. Closing stock value
( )b. Profit and loss account
( )c. cost of production
( )d. All of the above [Ans]
Q25. Over-absorption of factory overheads, due to inefficiency of management, should be disposed of by
( )a. Carry forward to next year
( )b. Supplementary rate
( )c. Transfer to costing P&L A/c [Ans]
( )d. Any of these
Q26. Over-absorption of factory overheads, due to inefficiency of management, should be disposed of by:
( )a. Carry forward to next year
( )b. Supplementary rate
( )c. Transfer to costing P&L A/c [Ans]
( )d. Any of these
Q27. Profit volume ratio can be calculated:
( )a. Sales/ProfitX100
( )b. Profit/SalesX100
( )c. contribution/Sales x 100 [Ans]
( )d. Variable cost/Fixed costX100
Q28. Provision for doubt full debts is part of
( )a. factory overhead
( )b. Office overhead [Ans]
( )c. Selling overheads
( )d. None of the above
Q29. Re order level=
( )a. Minimum consuption per period X Minimum Lead time
( )b. Mamimum consuption per period X Minimum Lead time
( )c. Minimum consuption per period XMaximum Lead time
( )d. non of the above [Ans]
Q30. Salary paid to accountant is part of
( )a. prime overheads
( )b. factory overheads
( )c. Office overheads [Ans]
( )d. Selling overheads
Q31. The cost data provide valuable information for taking the following managerial decision(s)
( )a. To make or buy
( )b. To own or hire fixed asset
( )c. Determining the expansion or contraction policy
( )d. All of the above [Ans]
Q32. The following is cost of direct materials
( )a. Freight charges [Ans]
( )b. grease
( )c. coolant
( )d. cotton waste
Q33. The payment made to the following is cost of direct labour.
( )a. Machinist [Ans]
( )b. Supervisor
( )c. Inspector
( )d. Sweeper
Q34. The stage of production at which separate products are identified is known as __
( )a. Process costing
( )b. Reverse cost method
( )c. Subsequent cost [Ans]
( )d. Equivalent production
Q35. Variable cost means
( )a. The cost which remain fixed in total
( )b. The cost which remain fixed per unit [Ans]
( )c. The cost which may fixed or vary
( )d. All of the above
Q36. Where units are identified then which method of invenoty valuation is better
( )a. FIFO [Ans]
( )b. LIFO
( )c. Weighted average method
( )d. non of the above
Q37. Which factor that cause change in cost of activity:
( )a. Activity cost
( )b. Driver rates
( )c. Cost pool
( )d. Cost drivers [Ans]
Q38. Which of the following calculate the actual cost of product:
( )a. Cost estimation
( )b. Costing [Ans]
( )c. Both a and b
( )d. None of these
Q39. Which of the following is control technique of material control
( )a. ABC Analysis
( )b. EOQ
( )c. Setting various level
( )d. All of the above [Ans]
Q40. Which of the following is cost of indirect materials
( )a. Lubricating oil [Ans]
( )b. Octroi
( )c. Import duties
( )d. Insurance
