QN01. Fancy packing is an example of ______________ expenses.
- Selling
- Distribution
- administration
- factory
Answer
(A)Selling
QN02. In ______________ each job is a cost unit to which all costs are assigned.
- Batch costing
- Job costing
- process costing
- operation costing
Answer
(B)Job costing
QN03. Where the work is undertaken to Customers' special requirements and each order is of comparatively short-duration, it is called ______________ costing.
- Job
- batch
- operation
- output
Answer
(A)Job
QN04. Contract costing is not used in one of the following industries.
- Ship building
- Civil Construction
- Automobiles
- Construction of Bridges
Answer
(C)Automobiles
QN05. In transport costing ______________ charges vary more or less in direct proportion to kilometers run.
- Running
- petrol
- drivers salary
- tax
Answer
(A)Running
QN06. Service costing is not used in one of the following:
- Electricity
- Hospitals
- transport
- Electronics
Answer
(D)Electronics
QN07. The method of costing applied in biscuit industries is ______________ costing and in steel industry ______________ costing.
- Job, process
- job, contract
- batch, multiple
- process, operation
Answer
(A)Job, process
QN08. When 1000 units are 60% complete in a process, it is equivalent to ______________ completed units.
- 60
- 600
- 6000
- 1000
Answer
(B)600
QN09. Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be ______________
- Abnormal loss
- normal loss
- abnormal gain
- normal gain
Answer
(C)abnormal gain
QN10. Budgeting system ______________ key managerial functions.
- Dismisses
- integrates
- discharges
- none of these
Answer
(B)integrates
QN11. ______________ budget is designed to remain unchanged irrespective of the volume of output or turnover attained.
- Master
- Fixed
- Flexible
- all of these
Answer
(B)Fixed
QN12. Efficiency Ratio=
- Number of actual working days in a period x 100
Number of working days in the budget period - Actual hours worked x 100
Budgeted hours - Standard hours for actual production x 100
Actual hours worked - Standard hours for actual production x 100
Budgeted standard hours
Answer
(C)
Standard hours for actual production x 100
Actual hours worked
QN13. Standard cost is a ______________ cost
- Predetermined
- historical
- actual
- final
Answer
(A)Predetermined
QN14. Volume variance is divided into ______________
- Capacity variance, calendar variance andExpenditure variance
- Capacity variance, calendar variance and efficiency variance
- Capacity variance, expenditure variance and efficiency variance
- Calendar variance, expenditure variance and efficiency variance
Answer
(B)Capacity variance, calendar variance and efficiency variance
QN15. Material Price Variance = Actual Usage ( ______________ )
- Standard price
- Standard unit price-actual unit price
- Actual price
- Standard usage
Answer
(B)Standard unit price-actual unit price
QN16. An unfavourable material price variance occurs because of:
- Price increase in raw materials
- Price decrease in raw materials
- Less than anticipated normal wastage in the manufacturing process
- More than anticipated normal wastage in the manufacturing process
Answer
(A)Price increase in raw materials
QN17. ______________ is an example of short-term budget
- Cash budget
- Capital expenditure budget
- Material budget
- Both a & c
Answer
(D)Both a & c
QN18. The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are ______________
- Capacity ratio, activity ratio
- Efficiency ratio, calendar ratio
- Both a & b
- None of the above
Answer
(C)Both a & b
QN19. The scope of cost accounting include ______________, and ______________
- Cost ascertainment, cost presentation, cost control
- tax planning, tax accounting, financial accounting
- presentation of accounting information, creation of policy, day-to day operation
- none of the above
Answer
(A)Cost ascertainment, cost presentation, cost control
QN20. Service costing is used in industries producing ______________
- Products
- service
- both a & b
- none of these
Answer
(B)service
QN21. ______________ is not the scope ofCost Accountancy.
- Ascertaining cost
- cost accounting
- cost control
- tax planning
Answer
(D)tax planning
QN22. Cost accounting provides detailed information about ______________ of various products, processes, services and operations.
- Costs
- income
- either a or b
- none of these.
Answer
(A)Costs
QN23. Sunk costs are ______________ for decision-making
- irrelevant
- relevant
- useful
- none of these.
Answer
(A)irrelevant
QN24. Fixed cost per unit ______________ with rise in output and ______________ with fall in output.
- Decreases, increases
- increases, decreases
- is constant, remains same
- none of the above
Answer
(A)Decreases, increases
QN25. ______________ are costs which have been applied against revenue of particular accounting period.
- Expenses
- income
- loss
- none of these
Answer
(A)Expenses
QN26. An item of cost that is direct for one business may be ______________ for another business.
- Important
- direct
- Indirect
- none of the above.
Answer
(C)Indirect
QN27. Variable costs change ______________ with change in output.
- Proportionately
- Inversely
- Disproportionately
- Sometimes
Answer
(A)Proportionately
QN28. Stock verification sheets are maintained to record the results of ______________
- Physical verification
- financial control
- financial verification
- quality verification
Answer
(A)Physical verification
QN29. First in first out method of valuing material issues is suitable in times of ______________
- Rising prices
- falling prices
- fluctuating prices
- none of these
Answer
(B)falling prices
QN30. A bill of material is prepared in case of a ______________ job
- Standard job
- non-standardized job
- both a & b
- none of these
Answer
(B)non-standardized job
QN31. Cost Accounting has been developed becauseof ______________ of Financial Accounting.
- Limitations
- advantages
- both a & b
- none of these
Answer
(A)Limitations
QN32. Cost accounting is based on ______________ figures.
- Estimated
- historical
- actual
- none of these.
Answer
(A)Estimated
QN33. Cost of production is equal to ______________
- Works cost plus Administration Overheads
- Prime cost plus Works cost
- prime cost plus works overhead
- works overhead plus administration overheads
Answer
(A)Works cost plus Administration Overheads
QN34. Cost centre and cost unit are ______________
- not the same
- the same
- not related
- none of these
Answer
(A)not the same
QN35. ______________ is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.
- Opportunity
- incremental revenue
- alternative revenue
- none of these
Answer
(A)Opportunity
QN36. Fixed cost per unit ______________ with increase in output.
- decreases
- increases
- changes
- sometimes
Answer
(A)decreases
QN37. Material control aims at achieving effective ______________
- Material management
- quality control
- accounting of material
- material supply
Answer
(A)Material management
QN38. Inflated price method of valuing material issues is suitable when ______________
- Materials are subject to natural wastage
- prices rise
- prices fall
- none of these
Answer
(A)Materials are subject to natural wastage
QN39. The quantity of material to be ordered at one time is known as ______________
- Ordering quantity
- commercial order quantity
- economic order quantity
- none of these
Answer
(A)Ordering quantity
QN40. Inventory turnover in days = Days during the period ÷ ______________
- Inventory turnover ratio
- material consumed during the period
- cost of average stock during the period
- none of these
Answer
(A)Inventory turnover ratio
