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Costing
Quiz 13
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Q.1
Process of assigning direct or indirect cost to any cost object is known as
cost assignment
cost expectation
event assignment
probability assignment
Q.2
Budgeted direct labour hours are multiplied to direct labour cost rate to calculate
expected total direct labour cost
budgeted total direct labour cost
budgeted total indirect labour cost
expected labour hours
Q.3
Term which describes assigning of indirect cost to any cost abject is classified as
cost allocation
sales tracing
sales allocation
cost tracing
Q.4
An average unit cost, applicable to each similar produced units is classified as
per unit cost
per post cost
per price cost
application cost
Q.5
If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be
$4,730,000
$3,730,000
$2,730,000
$1,730,000
Q.6
A document which contains information about materials of specific product, in specific department comes under
costing method
selling method
material acquisition method
none of above
Q.7
If an overhead cost of operating a machine is $500000 for 1000 hours, then cost allocation rate will be
$1500 per machine hour
$250 per machine hour
$500 per machine hour
$1000 per machine hour
Q.8
The process of redistribution of service department costs to production departments is ________.
departmentalization
primary distribution
secondary distribution
classification
Q.9
Depreciation of plant can be apportioned on the basis of ________.
plant value
plant size
working days
output produced
Q.10
Indirect materials can be apportioned on the basis of ________.
direct material
prime cost
direct labour hour
machine hour
Q.11
A cost unit is ________.
the cost per machine hour
the cost per labour hour
a unit of production or service in relation to which costs are ascertained
a measure of work output in a standard hour
Q.12
Factory overhead is also called as ________.
sundry overhead
extra overhead
works overhead
total overhead
Q.13
Which one of the following is not considered for preparation of cost sheet?
Factory cost
Goodwill written off
Labour cost
Selling cost
Q.14
Sale of defectives is reduced from ________.
prime cost
works cost
cost of production
cost of sales
Q.15
The stores keeper should initiate a purchase requisition when stock reaches ________.
Average stock level
Minimum stock level
Maximum stock level
Re-order level
Q.16
Direct cost incurred can be identified with ________.
each department
each unit of output
each month
each executive
Q.17
Cost of sales plus profit is _______.
selling price
value of finished product
value of goods produced
value of stocks
Q.18
Prime cost includes _______.
direct materials, direct wages and indirect expenses
indirect materials and indirect labour and indirect expenses
direct materials, direct wages and direct expenses
direct materials, indirect wages and indirect expenses
Q.19
Depreciation of plant and machinery is a part of ________.
factory overhead
selling overhead
distribution overhead
administration overhead
Q.20
Costing refers to the techniques and processes of ________.
ascertainment of costs
allocation of costs
apportion of costs
distribution of costs
Q.21
Cost accounting was developed because of the _________.
limitations of the financial accounting
limitations of the management accounting
limitations of the human resource accounting
limitations of the double entry accounting
Q.22
Multiple costing is a technique of using two or more costing methods for ascertainment of cost by _______.
the same firm
the several firms
the same industry
the several industries
Q.23
Prime cost plus variable overheads is known as________.
Cost of sales
Production Cost
Total Cost
Marginal cost
Q.24
Wages paid to a labour who was engaged in production activities can be termed as _______.
direct cost
indirect cost
sunk cost
imputed cost
Q.25
Classification of cost is useful ________.
to find gross profit
to find net profit
to identify costs
to identify efficiency
Q.26
operating costing is a ________.
method of costing
technique of costing
norm of costing
procedure of costing
Q.27
In goods transport service the cost unit is ________.
cost per ton
cost per hour
cost per ton kilo meters
cost per vehicle
Q.28
Difference between job time and attendance time is
job time
actual time
over time
idle time
Q.29
The type of loss that should not affect cost of inventories is ________.
normal loss
abnormal loss
seasonal loss
standard loss
Q.30
The expenses relating to a particular process is ________.
debited to that process a/c
credited to that process a/c
debited to costing profit and loss a/c
debited to profit and loss a/c
Q.31
Appropriate basis for apportionment of material handling charges is ________.
material purchased
material in stock
material consumed
material wasted
Q.32
Recreation expenses in factory are apportioned on the basis of ________.
material cost
wages
prime cost
number of employees
Q.33
Classification and accumulation of costs by fixed and variable costs is of special importance in ________.
process costing
unit costing
operation costing
operating costing
Q.34
Process cost is ascertained and recorded in ________.
balance sheet
profit and loss a/c
separate statement
separate ledger a/c
Q.35
Batch costing is useful to determine ________.
maximum quantity of output
minimum quantity of output
economic batch quantity
profit of batches
Q.36
Which of the following is an example of semi-variable cost?
Salary
Tax
Telephone expenses
Office expenses
Q.37
The purpose of financial accounting is to provide information for ________.
fixing prices
controlling cost
locating factors leading to wastages and losses
assessing the profitability and financial position of the firm
Q.38
Defectives ________.
cannot be rectified and made into good units
can be rectified and mad made into good units
can be a part of finished product
can be termed as spoilage
Q.39
Overhead cost is the total of ________.
all indirect costs
all direct costs
indirect and direct costs
all specific costs
Q.40
Operating costing is suitable for _______.
job order business
contractors
sugar industries
service industries
Q.41
Normal loss in the manufacturing process leads to _______.
reduction in unit price of other good units
increase in unit price of other good units
reduction in costing profit
increase in costing profit
Q.42
Abnormal loss and its value are _______.
debited to process a/c
credited to process a/c
debited to costing profit and loss a/c
debited to profit and loss a/c
Q.43
Charging output with overhead at reasonable rate is called ________.
allocation
appropriation
apportionment
absorption
Q.44
Comprehensive machine hour rate includes ________.
machine operators wages
managing directors salary
income tax
office rent
Q.45
The basis for the payment of cash by contractee under contract is ________.
work certified
work uncertified
contract cost
value of plant used in the contract
Q.46
Contract a/c is _______.
a nominal a/c
a real a/c
a personal a/c
either nominal or real a/c
Q.47
Actual loss is more than the predetermined normal loss, it is ________.
normal loss
abnormal loss
seasonal loss
standard loss
Q.48
Number of worker employed is used as basis for the apportionment of ________.
rent
canteen expenses
PF contribution
rate and tax
Q.49
In order to avoid the stoppage of production due to shortage of material _______.
maximum stock level is maintained
minimum stock level is maintained
re-order level is maintained
average stock level is maintained
Q.50
Discarded material substances having no value is called ________.
waste
scrap
defectives
spoilage
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