Cost and Managerial Accounting Online MCQ Set 10

QN01. Economic Batch Quantity is an important point to be determined in industries where ______________ costing is employed.

1. Job
2. batch
3. operation
4. output

Answer

(B)batch

QN02. If the amount of work certified is less than ______________ of the contract price, then no profit should be taken to Profit & Loss Account.

1. 20%
2. 25%
3. 33 1/3%
4. 40%

Answer

(B)25%

QN03. Maintenance charges are in the nature of ______________ expenses.

1. Fixed
2. Variable
3. semi-variable
4. none of these

Answer

(C)semi-variable

QN04. Boiler house costing is an example of ______________ costing

1. Operation
2. process
3. service
4. none of these

Answer

(C)service

QN05. Average unit cost for each process is calculated by dividing the ______________ by ______________

1. Total cost, number of units
2. total process cost, number of units in process
3. Total process cost, number of finished goods
4. total cost, number of units produced

Answer

(B)total process cost, number of units in process

QN06. When actual loss is ______________ than the estimated loss, the difference between the two is considered to be abnormal loss.

1. More
2. less
3. both a & b)
4. none of these

Answer

(A)More

QN07. An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is ______________ kg

1. 400
2. 300
3. 500
4. 600

Answer

(B)300

QN08. ______________ budget may be classified into material cost budget, labour cost budget and overhead budget.

1. Cost of Production
2. purchase
3. sales
4. Cash

Answer

(A)Cost of Production

QN09. Activity Ratio=

1. Number of actual working days in a period x 100
   Number of working days in the budget period
2. Actual hours worked x 100
   Budgeted hours
3. Standard hours for actual production x 100
   Actual hours worked
4. Standard hours for actual production x 100
   Budgeted standard hours

Answer

(D)

Standard hours for actual production x 100
Budgeted standard hours

QN10. Overhead expenses can be classified according to:

1. Functions
2. Elements
3. Behavior
4. All of the above

Answer

(D)All of the above

QN11. Sales budget is a

1. Functional budget
2. Master budget
3. Expenditure budget
4. none of these

Answer

(A)Functional budget

QN12. The budget which commonly takes the form of budgeted profit and loss account and balance sheet is

1. cash budget
2. master budget
3. flexible budget
4. fixed budget

Answer

(B)master budget

QN13. The deviation of the actual cost or profit or sales from the standard cost or profit or sale is known as ______________

1. Difference
2. Variance
3. Discrepancy
4. Inconsistency

Answer

(B)Variance

QN14. Labour cost variance is the difference between standard cost of labour and ______________

1. Budgeted cost of labour
2. Estimated cost of labour
3. Actual cost of labour
4. None of these

Answer

(C)Actual cost of labour

QN15. The technique of standard costing may not be applicable in case of

1. Large concerns
2. Small concerns
3. All concerns
4. Both b & c

Answer

(D)Both b & c

QN16. A favourable variance will arise when capital revenues are ______________ than expected.

1. More
2. Less
3. Lesser
4. None of the above

Answer

(A)More

QN17. Labour rate variance is computed by multiplying the

1. Standard labour rate with the difference between standard labour hours and actual labour hours
2. Actual labour hours with the difference between standard labour hours and actual labour hours
3. Actual labour rate with the difference between standard labour rate and actual labour hours.
4. None of the above

Answer

(D)None of the above

QN18. ______________ is a post mortem of past costs.

1. Financial accounting
2. cost accounting
3. both a & b
4. none of these

Answer

(A)Financial accounting

QN19. Operating costing is also known as ______________ costing.

1. Service
2. batch
3. multiple
4. job

Answer

(A)Service

QN20. Cost accounting provides data for managerial ______________

1. Decision making
2. recruitment
3. retrenchment
4. none of the above.

Answer

(A)Decision making

QN21. Variable cost per unit ______________

1. Remains constant
2. varies
3. decreases
4. increases

Answer

(A)Remains constant

QN22. Abnormal cost is ______________

1. Uncontrollable
2. controllable
3. fixed
4. none of these

Answer

(A)Uncontrollable

QN23. Period costs charged to ______________

1. cost of production
2. Products
3. Period
4. none of these

Answer

(C)Period

QN24. ______________ is the smallest segment of activity or area or responsibility for which costs are accumulated.

1. Cost Object
2. Cost centre
3. cost driver
4. none of the above

Answer

(B)Cost centre

QN25. ______________ costs are partly fixed and partly variable in relation to output.

1. Variable
2. fixed
3. Semi-variable
4. both a & b

Answer

(C)Semi-variable

QN26. Added value is the change in ______________

1. Market value
2. cost
3. income
4. none of the above.

Answer

(A)Market value

QN27. Bin card is maintained by the ______________

1. Cost accountant
2. Clerk
3. storekeeper
4. branch accountant

Answer

(C)storekeeper

QN28. A bill of material serves the purpose of ______________

1. Material requisition
2. stores ledger
3. material issue analysis sheet
4. none of these

Answer

(A)Material requisition

QN29. ______________ is used primarily for control of spare parts.

1. ABC Analysis
2. JIT Inventory System
3. VED Analysis
4. Perpetual Inventory System

Answer

(C)VED Analysis

QN30. Defectives are that portion of production which can be ______________ at some extra cost of re-operation.

1. Sold
2. rectified
3. purchased
4. none of these

Answer

(B)rectified

QN31. ______________ is maintained to know how the worker's time shown by the time card is spent on various jobs.

1. Daily time sheets
2. weekly time sheets
3. job cards
4. none of the above

Answer

(C)job cards

QN32. Under piece rate system of wage payment, payment is made according to the ______________

1. Quantity of work done
2. time
3. both a&b
4. none of these

Answer

(A)Quantity of work done

QN33. In ______________, two piece rates are set for each job.

1. Merrick's multiple piece rate system
2. Rowan's Premium Plan
3. Taylor's differential piece rate system
4. none of these

Answer

(C)Taylor's differential piece rate system

QN34. 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.

1. A predetermined rate
2. actual rate method of absorption
3. both a & b
4. none of these

Answer

(A)A predetermined rate

QN35. ______________ expenses are partly fixed and partly variable.

1. All expenses
2. variable
3. fixed
4. semi-variable

Answer

(D)semi-variable

QN36. When factory overhead control account has an ending debit balance, factory overhead was ______________

1. Over applied
2. under applied
3. both a & b
4. none of these

Answer

(B)under applied

QN37. Each job has a ______________ prepared for it that bears the job number and which is used to collect all cost data relating to job.

1. Job Time Sheet
2. Job Cost Card
3. Job Ticket
4. Job Account

Answer

(B)Job Cost Card

QN38. The loss incurred on an incomplete contract is transferred to ______________ account.

1. Costing profit and loss account
2. profit and loss account
3. trading account
4. deferred to next year.

Answer

(B)profit and loss account

QN39. ______________ is the most suitable method in a transport industry.

1. Operation costing
2. Service costing
3. Process costing
4. Job costing

Answer

(B)Service costing

QN40. In electricity supply company uses ______________ as cost unit.

1. Kilo watt hour
2. per household
3. voltage
4. none of these

Answer

(A)Kilo watt hour