Q.1
A bill of material serves the purpose of…………………
  • Material requisition
  • stores ledger
  • material issue analysis sheet
  • none of these
Q.2
Which one of the following items would NOT be included in a cash budget?
  • dividend payments
  • capital repayments of loans
  • depreciation charges
  • proceeds of sale of fixed assets
Q.3
Direct expenses are also called ________.
  • major expenses
  • chargeable expenses
  • overhead expenses
  • sundry expenses
Q.4
The cost which is to be incurred even when a business unit is closed is a _____.
  • imputed cost
  • historical cost
  • sunk cost
  • shutdown cost
Q.5
Cost classification can be done in ________.
  • two ways
  • three ways
  • four ways
  • several ways
Q.6
Process costing is suitable for ________.
  • hospitals
  • oil refing firms
  • transport firms
  • brick laying firms
Q.7
Basic objective of cost accounting is ________
  • tax compliance.
  • financial audit.
  • cost ascertainment.
  • profit analysis.
Q.8
……………..is an example of short-term budget
  • Cash budget
  • Capital expenditure budget
  • Material budget
  • Both a & c
Q.9
……………..is an example of long-term budget
  • Cash budget
  • Capital expenditure budget
  • Research and development budget
  • Both b & c
Q.10
Labour rate variance is computed by multiplying the
  • Standard labour rate with the difference between standard labour hours and actual labour hours
  • Actual labour hours with the difference between standard labour hours and actual labour hours
  • Actual labour rate with the difference between standard labour rate and actual labour hours.
  • None of the above
Q.11
Volume variance arises because of :
  • Increase in overhead rate per hour
  • Decrease in overhead rate per hour
  • Increase or decrease in actual output as compared to the budgeted output.
  • Difference in budgeted overheads and actual overheads.
Q.12
An unfavourable material usage arises because of:
  • Price increase in raw materials
  • Price decrease in raw mateials
  • Less than anticipated normal wastage in the manufacturing process
  • More than anticipated normal wastage in the manufacturing process
Q.13
The type of standard best suitable for cost control purpose is
  • Basic standard
  • Ideal standard
  • Normal standard
  • Expected standard
Q.14
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
Q.15
A favourable variance will arise when capital revenues are………..thanexpected.
  • More
  • Less
  • Lesser
  • None of the above
Q.16
Volume Variance =
  • Standard rate (Actual output-budgeted output)
  • Actual output x standard rate-budgeted fixed overheads
  • Standard rate per hour(standard hours produced-actual hours)
  • All of the above
Q.17
Total Labour cost variance =
  • Standard cost of labour - actual cost of labour
  • Standard rate(standard time for actual output-actual time worked)
  • Standard rate (standard time for actual output- actual time paid for)
  • Actual time taken (standard rate-actual rate)
Q.18
Material mix variance = standard cost of standard mix - ………………..
  • Actual cost of actual mix
  • Actual cost of standard mix
  • Standard cost of actual mix
  • Standard cost of budgeted mix
Q.19
Material usage variance = standard price(……………….)
  • Standard usage-actual usage
  • Standard unit price-actual unit price
  • Standard quantity
  • Actual quantity
Q.20
Material Price Variance = Actual Usage (……………)
  • Standard price
  • Standard unit price-actual unit price
  • Actual price
  • Standard usage
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