Cost and Managerial Accounting Online MCQ Set 7

QN01. An automobile service unit uses
______________ costing.

  1. specific order
  2. batch
  3. job
  4. contract
Answer

(C)job

QN02. Economic Batch Quantity depends on ______________ and ______________ costs.

  1. Material, labour
  2. set-up costs, carrying
  3. transportation, carrying
  4. warehousing, labour
Answer

(B)set-up costs, carrying

QN03. When the completion stage of a contract is less than %, the total expenditure on the contract is transferred to ______________ account.

  1. Work-in-Progress
  2. Profit and loss account
  3. miscellaneous account
  4. none of these
Answer

(A)Work-in-Progress

QN04. Room/day is the cost unit used in ______________

  1. Hotels
  2. hospital
  3. schools
  4. none of these
Answer

(A)Hotels

QN05. In transportation costing a composite unit such as ______________ is used.

  1. passenger mile/km or Ten kilometer
  2. per km
  3. per passenger
  4. per stop
Answer

(A)passenger mile/km or Ten kilometer

QN06. A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are ______________

  1. 30,000
  2. 12,500
  3. 20,000
  4. 25,000
Answer

(D)25,000

QN07. Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is ______________

  1. Job costing
  2. Operating costing
  3. Process Costing
  4. both b and c
Answer

(C)Process Costing

QN08. When actual loss is ______________ than the estimated loss, the difference between the two is considered to be abnormal gain

  1. More
  2. less
  3. higher
  4. none of these
Answer

(B)less

QN09. The cost of ______________ process loss is absorbed in the cost of production of good units.

  1. Abnormal
  2. normal
  3. both a & b
  4. none of these
Answer

(B)normal

QN10. ______________ arises where the actual process loss is less than the normal predetermined process loss.

  1. Normal loss
  2. abnormal loss
  3. abnormal gain
  4. none of these
Answer

(C)abnormal gain

QN11. The budget relating to ______________ must be prepared first and the other budgets should be prepared in the light of that factor.

  1. Limiting factor
  2. materials
  3. labour
  4. production
Answer

(A)Limiting factor

QN12. ______________ is the consolidated summary of the various functional budgets.

  1. Master Budget
  2. Sales budget
  3. Performance budget
  4. Cash Budget
Answer

(A)Master Budget

QN13. Calendar 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

(A)

Number of actual working days in a period x 100
Number of working days in the budget period

QN14. Cash Budget is a ______________ budget.

  1. Long term
  2. very long term
  3. short term
  4. very short term
Answer

(C)short term

QN15. The budget that is prepared first of all is ______________

  1. Cash budget
  2. master budget
  3. budget for the key factor
  4. sales budget
Answer

(C)budget for the key factor

QN16. Standard costing is more widely applied in ______________ industries.

  1. Process and engineering
  2. jobbing industries
  3. construction industry
  4. all of these
Answer

(A)Process and engineering

QN17. Material price variance is the difference between standard and actual prices of materials used multiplied by ______________

  1. Actual quantity of materials used
  2. Budgeted quantity of materials used
  3. Standard quantity of materials used
  4. Either a or b
Answer

(A)Actual quantity of materials used

QN18. Total Material cost variance=

  1. Standard cost of materials-actual cost of materials
  2. Budgeted cost of materials- actual cost of materials
  3. Standard cost of materials-budgeted cost of materials
  4. Actual cost of materials- budgeted cost of materials
Answer

(A)Standard cost of materials-actual cost of materials

QN19. Total Labour cost variance=

  1. Standard cost of labour - actual cost of labour
  2. Standard rate(standard time for actual output-actual time worked)
  3. Standard rate (standard time for actual output- actual time paid for)
  4. Actual time taken (standard rate-actual rate)
Answer

(A)Standard cost of labour - actual cost of labour

QN20. An unfavourable material usage arises because of:

  1. Price increase in raw materials
  2. Price decrease in raw mateials
  3. Less than anticipated normal wastage in the manufacturingprocess
  4. More than anticipated normal wastage in the manufacturing process
Answer

(D)More than anticipated normal wastage in the manufacturing process

QN21. ______________ is an example of long-term budget

  1. Cash budget
  2. Capital expenditure budget
  3. Research and development budget
  4. Both b & c
Answer

(C)Research and development budget

QN22. ______________ helps in ascertaining costs beforehand.

  1. Financial accounting
  2. cost accounting
  3. management accounting
  4. none of these
Answer

(B)cost accounting

QN23. ______________ aids in price fixation.

  1. Financial accounting
  2. cost accounting
  3. management accounting
  4. none of these
Answer

(B)cost accounting

QN24. Process costing is also known as ______________ costing.

  1. Continuous
  2. batch
  3. multiple
  4. job
Answer

(A)Continuous

QN25. Cost accounts deal partly with facts and figures and partly with ______________

  1. Estimates
  2. costs
  3. income
  4. revenue
Answer

(A)Estimates

QN26. ______________ costing is used in transport undertakings.

  1. Process
  2. service
  3. multiple
  4. job
Answer

(B)service

QN27. Administration expenses are mostly ______________

  1. semi-variable
  2. variable
  3. fixed
  4. none of these.
Answer

(C)fixed

QN28. ______________ Accounting provides information for cost control.

  1. Financial
  2. Cost
  3. Human Resource
  4. none of these.
Answer

(B)Cost

QN29. ______________ is the value of a benefit where no actual cost is incurred.

  1. Imputed
  2. sunk
  3. out of pocket
  4. none of these
Answer

(A)Imputed

QN30. Works cost is a total of ______________

  1. Indirect material, Indirect labour
  2. Direct material, direct labour, direct or chargeable expenses and works expenses
  3. Direct material, direct labour
  4. Indirect material, Indirect labour, Indirect expenses
Answer

(B)Direct material, direct labour, direct or chargeable expenses and works expenses

QN31. ______________ Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

  1. Financial
  2. Cost
  3. both a & b
  4. none of these
Answer

(B)Cost

QN32. Stock Adjustment Account is debited with ______________ and credited with ______________

  1. Surplus, shortage of stock
  2. shortage of stock, surplus
  3. excess, loss
  4. none of these
Answer

(B)shortage of stock, surplus

QN33. Average cost method of valuing material issues is suitable when ______________

  1. Prices rise
  2. prices fall
  3. prices fluctuate considerably
  4. none of these
Answer

(C)prices fluctuate considerably

QN34. Stock verification sheets are maintained to record the results of ______________

  1. Physical verification
  2. financial control
  3. financial verification
  4. quality verification
Answer

(A)Physical verification

QN35. Inventory turnover ratio = Cost of ______________ during the period ÷ Cost of average inventory held during the period.

  1. Inventory consumed
  2. minimum inventory
  3. maximum inventory
  4. none of these
Answer

(A)Inventory consumed

QN36. Material losses due to abnormal reasons should be transferred to ______________

  1. Profit and loss account
  2. Costing Profit and Loss Account
  3. Trading Account
  4. none of these
Answer

(B)Costing Profit and Loss Account

QN37. ______________ is concerned with discovery of facts concerning a job and ______________ is concerned with ascertaining the money value of a job.

  1. Job description, job evaluation
  2. job specifications, job evaluation
  3. job analysis, job evaluation
  4. none of these
Answer

(C)job analysis, job evaluation

QN38. Under Merrick's multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between ______________ of the standard output.

  1. 0% and 100%
  2. 0% and 120%
  3. 0% and 83%
  4. none of these
Answer

(C)0% and 83%

QN39. ______________ is the amount by which the absorbed overheads fall short of the actual amount of overheads incurred.

  1. Over absorption of overheads
  2. under absorption of overheads
  3. overheads absorption
  4. none of these.
Answer

(B)under absorption of overheads

QN40. Such expenses which are included (even though they are not incurred) for taking managerial decisions are called ______________

  1. Notional expenses
  2. actual expenses
  3. imputed
  4. none of these
Answer

(A)Notional expenses

ed010d383e1f191bdb025d5985cc03fc?s=120&d=mm&r=g

DistPub Team

Distance Publisher (DistPub.com) provide project writing help from year 2007 and provide writing and editing help to hundreds student every year.