Cost and Managerial Accounting Online MCQ Set 9

QN01. Re-ordering level = ______________ X Maximum re-order period

  1. Average re-order period
  2. Maximum usage
  3. Maximum consumption
  4. Normal usage
Answer

(C)Maximum consumption

QN02. The requirements of a particular job are known as ______________

  1. Job description
  2. job specifications
  3. job evaluation
  4. both a & b
Answer

(A)Job description

QN03. In time wage system, wages are paid according to the ______________

  1. Production
  2. time
  3. both a & b
  4. none of these
Answer

(B)time

QN04. Under Merrick's multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between. of the standard output.

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

(A)83% and 100%

QN05. Basis of apportionment of creche expenses is ______________

  1. Number of employees
  2. number of female employees
  3. number of male employees
  4. both b&c
Answer

(B)number of female employees

QN06. The per unit expense of the ______________ portion factory overhead varies with the volume of production while ______________ portion remains the same with volume.

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

(A)Fixed, variable

QN07. Unsuccessful research expenditure should be ______________ cost accounts.

  1. Excluded from
  2. included in
  3. apportioned in
  4. none of these
Answer

(A)Excluded from

QN08. Printers use ______________ costing.

  1. Process
  2. Batch
  3. job
  4. contract
Answer

(C)job

QN09. The ______________ costing is applied when a quantity of similar and identical products are manufactured together as one Job.

  1. Job
  2. Batch
  3. operation
  4. output
Answer

(B)Batch

QN10. The sum of value of work certified and uncertified appearing in the Contract Account is called ______________

  1. Work in Progress
  2. Work in Process
  3. Work Completed
  4. Work done.
Answer

(A)Work in Progress

QN11. In ______________ costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year:

  1. Multiple
  2. Process
  3. Operation
  4. single.
Answer

(C)Operation

QN12. When the actual loss is more than the estimated loss, the difference between the two is considered to be ______________

  1. Abnormal loss
  2. normal loss
  3. loss
  4. none of these
Answer

(A)Abnormal loss

QN13. ______________ process loss should be transferred to costing profit & loss account.

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

(A)Abnormal

QN14. In process costing, the abnormal loss is treated as ______________ cost and written off to profit & loss account.

  1. Unit
  2. period
  3. future
  4. process
Answer

(B)period

QN15. ______________ is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

  1. Rolling budget
  2. continuous budget
  3. annual budget
  4. both a & b
Answer

(D)both a & b

QN16. ______________ is a summary of all function budgets in a Capsule form.

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

(A)Master Budget

QN17. The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:

  1. Includes only fixed costs, while a variable budget includes only variable costs.
  2. Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales.
  3. Cannot be changed after the period begins, while a variable budget can be changed after the period begins.
  4. Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)
Answer

(D)Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)

QN18. Three types of standards are ______________

  1. Current standard, basic standard and normal standard
  2. Currency standard, basel standard and actual standard
  3. Actual standard, estimated standard and expected standard
  4. Expected standard, ideal standard and current standard
Answer

(A)Current standard, basic standard and normal standard

QN19. Idle time variance is ______________

  1. Idle time x actual labour
  2. Idle time x standard rate
  3. Idle time x budgeted labour rate
  4. Idle time x historical cost
Answer

(B)Idle time x standard rate

QN20. Material mix variance = standard cost of standard mix - ______________

  1. Actual cost of actual mix
  2. Actual cost of standard mix
  3. Standard cost of actual mix
  4. Standard cost of budgeted mix
Answer

(C)Standard cost of actual mix

QN21. Volume variance arises because of :

  1. Increase in overhead rate per hour
  2. Decrease in overhead rate per hour
  3. Increase or decrease in actual output as compared to the budgeted output.
  4. Difference in budgeted overheads and actual overheads.
Answer

(C)Increase or decrease in actual output as compared to the budgeted output.

QN22. Cost accounting disclose ______________

  1. The Financial position
  2. profit/loss of a product, job or service
  3. effect and impact of cost on business
  4. none of these
Answer

(B)profit/loss of a product, job or service

QN23. ______________ costing is applicable to printers.

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

(D)job

QN24. The ordinary trading account is a locked storehouse of most valuable information to which cost system is the ______________

  1. Key
  2. lock
  3. house
  4. none of these
Answer

(A)Key

QN25. The total variable cost ______________ in total proportion to output.

  1. Increases
  2. does not increase
  3. decreases
  4. none of these.
Answer

(A)Increases

QN26. Variable cost increases with ______________ in output.

  1. Increase
  2. decrease
  3. increase or decrease
  4. none of these.
Answer

(A)Increase

QN27. Standard costs is ______________

  1. Predetermined cost
  2. budgeted cost
  3. Actual cost
  4. none of these
Answer

(A)Predetermined cost

QN28. The total of all direct expenses is known as ______________ cost.

  1. Prime
  2. Works
  3. Production
  4. both a & b
Answer

(A)Prime

QN29. Out of pocket costs involve payment to ______________

  1. Outsiders
  2. self
  3. employees
  4. none of the above
Answer

(A)Outsiders

QN30. Bin card is a record of ______________ only.

  1. Cost
  2. value
  3. quantity
  4. expense
Answer

(C)quantity

QN31. Market price method is considered to be the best method when ______________

  1. Quotations have to be sent
  2. prices fluctuate
  3. materials are subject to natural wastage
  4. none of these
Answer

(A)Quotations have to be sent

QN32. ______________ represents that quantity of material which is normally ordered when a particular material reaches reordering level.

  1. maximum level
  2. re-order level
  3. minimum level
  4. Re-order quantity
Answer

(D)Re-order quantity

QN33. ______________ is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory

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

(B)JIT Inventory System

QN34. ______________ does not form part of production.

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

(A)Abnormal waste

QN35. For conducting ______________ workers are studied at their jobs and all their movements and motions are noted.

  1. Time study
  2. Motion study
  3. Merit rating
  4. none of these
Answer

(B)Motion study

QN36. ______________. is most suitable when quality of work is of prime importance.

  1. Piece rate system
  2. time wage system
  3. both a & b
  4. none of these
Answer

(B)time wage system

QN37. Basis of apportionment of welfare department expenses is ______________

  1. Wages of each department
  2. Number of employees
  3. materials consumed
  4. number of machineries
Answer

(B)Number of employees

QN38. ______________ is the excess of overheads absorbed over the actual amount of overheads incurred.

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

(A)Over absorption of overheads

QN39. Telephone expense is
______________ expense.

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

(B)semi-variable

QN40. Under applied or over applied factory overhead should be

  1. Carried forward to next year
  2. shown as an extraordinary item
  3. apportioned among cost of goods sold and applicable to inventory
  4. written off
Answer

(C)apportioned among cost of goods sold and applicable to inventory

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