81. In process costing, costs follow
A. Price rise
B. Product flow
C. Price declines
D. Finished goods
Answer
B. Product flow
82. When average costing is used, the opening inventory costs are
A. Kept separate from the costs for the new period
B. Added to the costs of the new period
C. Subtracted from the new costs
D. Averaged with other costs to arrive at total cost.
Answer
A. Kept separate from the costs for the new period
83. A disadvantage of FIFO costing is that
A. The first units produced cannot be distinguished from later production.
B. Several units’ costs are used at the same time.
C. The units have to be kept separate
D. The shipping costs are higher
Answer
B. Several units’ costs are used at the same time.
84. Which of the following method of costing can be used in a large oil refinery?
A. Process costing
B. Unit costing
C. Operating costing
D. Job costing
Answer
A. Process costing
85. Which of the following pair is odd one?
A. Construction-Contract costing
B. Ship-building-Job costing
C. Brick manufacturing – Process costing
D. Transport undertaking – Operating costing
Answer
C. Brick manufacturing – Process costing
86. A product which has practically no sales or utility value is ___
A. Waste
B. Spoilage
C. Scrap
D. Defectives
Answer
A. Waste
87. Trimmings in timber industry should be treated as a ___
A. Waste
B. Spoilage
C. Scrap
D. Defectives
Answer
C. Scrap
88. The type of process loss that should not affect the cost of inventory is
A. Abnormal loss
B. Seasonal loss
C. normal loss
D. standard loss
Answer
A. Abnormal loss
89. The stage where joint products are separated from each other is known as ___
A. break-even point
B. angle of incidence
C. split-off point
D. Point of indifference
Answer
C. split-off point
90. Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrapvalue. If output is 40 units the amount of abnormal loss would be ___
A. Rs. 80
B. Rs. 10
C. Rs. 8
D. Rs. 9
Answer
B. Rs. 10
91. Abnormal loss is charged to ___
A. process account
B. costing profit and loss account
C. Normal loss account
D. None of these.
Answer
B. costing profit and loss account
92. Classification and accumulation of costs by fixed and variable costs is a distinctive feature of ___
A. Process costing
B. Unit costing
C. Operating costing
D. Batch costing
Answer
C. Operating costing
93. Composite unit is distinctive feature of ___
A. Single or output costing
B. Process costing
C. Job costing
D. Operating costing
Answer
D. Operating costing
94. Electricity generating company should employ ___
A. Unit costing
B. Process costing
C. Operating costing
D. Multiple costing
Answer
C. Operating costing
95. Cinema houses must adopt ___
A. Operating costing
B. Job costing
C. Batch costing
D. Contract costing
Answer
A. Operating costing
96. For a library the best method of costing suitable is ___
A. Output costing
B. Operating costing
C. Process costing
D. Multiple costing
Answer
B. Operating costing
97. For an educational institute the right method of costing is ___
A. Output costing
B. Job costing
C. Operating costing
D. Process costing
Answer
B. Job costing
98. Hospitals must make use of ___
A. Operating costing
B. Batch costing
C. Process costing
D. Multiple costing
Answer
A. Operating costing
99. For hotels the best method of costing is ___
A. Single or output
B. Contract costing
C. Process costing
D. Operating costing
Answer
D. Operating costing
100. Flight/Air services must make use of ___
A. Job costing
B. Operating costing
C. Batch costing
D. Process costing
Answer
B. Operating costing
101. Indian Railways must adopt ___
A. Operating costing
B. Unit costing
C. Batch costing
D. Multiple costing
Answer
A. Operating costing
102. Public utility undertakings must invariably adopt ___
A. Operating costing
B. Output costing
C. Contract costing
D. Multiple costing
Answer
D. Multiple costing
103. Kerala Electricity Board must make use of ___
A. Single or unit costing
B. Job costing
C. Process costing
D. Operating cost
Answer
A. Single or unit costing
104. The method of costing used in case of a gas company is termed as ___
A. Job costing
B. Process costing
C. Operating costing
D. Contract costing
Answer
C. Operating costing
105. Mines `A’ and `B’ are at a distance of 10 kms and 15 kms from the factory. The cost per tonne-km incase of mine A is Rs. 3 while it is R. 2.5 in case of mine B. The factory should procure coal from ___
A. Mine A only
B. Mine B only
C. Both from mines A and B in the ration of 3: 2
D. Can’t decide.
Answer
A. Mine A only
106. In case of steam company, the cost per unit is calculated on the basis of ___
A. Total quantity of lbs. produced
B. Total quantity of kwh generated
C. Total quantity of tones produced
D. Any of the above.
Answer
A. Total quantity of lbs. produced
107. Calendar variance is the sub variance of ___
A. Labour variances
B. Sales variances
C. Fixed Overhead variances
D. Variable Overhead variances
Answer
C. Fixed Overhead variances
108. Which of the following is /are support activity in Value Chain Analysis?
A. Procurement
B. Firms’ infrastructure
C. HRM
D. All of these.
Answer
D. All of these.
109. Which of the following is /are primary activity in Value Chain Analysis?
A. Procurement
B. Firms’ infrastructure
C. HRM
D. Service
Answer
D. Service
110. ___ variance is always adverse.
A. Material yield variance
B. Labour rate variance
C. Idle time variance
D. None of these
Answer
C. Idle time variance
111. ___ are those products which are manufactured in different varieties by the same industry.
A. Joint products
B. By products
C. Co-products
D. All of these
Answer
C. Co-products
112. ___ means ‘Change for better’.
A. Kanban
B. Kaizen
C. Sigma
D. Seitan
Answer
B. Kaizen
113. Lean manufacturing can be achieved by using ___
A. Activity based costing
B. Target costing
C. Just in Time
D. Life cycle costing
Answer
C. Just in Time
114. ___ is the cost attribution to the cost unit on the basis of benefits received from indirect activities.
A. Activity based costing
B. Target costing
C. Backflush costing
D. Life cycle costing
Answer
A. Activity based costing
115. Traditional absorption costing is ___
A. Activity based
B. Volume based
C. Transaction based
D. All the above
Answer
B. Volume based
116. In Activity based costing, importance given to ___
A. Direct Cost
B. Relevant cost
C. Overhead
D. Opportunity cost
Answer
C. Overhead
117. ___ is the item of product. Job, process or customer for which cost are to be determined.
A. Cost Driver
B. Cost object
C. Cost pool
D. Cost concept
Answer
B. Cost object
118. ‘Cost of Procurement’ is an example of ___
A. Cost Driver
B. Cost object
C. Cost pool
D. Cost Centre
Answer
C. Cost pool
119. ___ in Activity Based Costing is like ‘cost centre’ in traditional costing.
A. Activity Cost Driver
B. Cost object
C. Cost pool
D. Resource Cost driver.
Answer
C. Cost pool
120. ___ cost is also known as hypothetical or notional cost.
A. Opportunity cost
B. Out of pocket cost
C. Imputed cost
D. Relevant cost
Answer
C. Imputed cost
