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Quiz 14
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Q.1
Bonus under Rowan scheme is paid ________.
as a proportion of standard time to actual time
as a proportion of actual time to standard time
as a proportion of time saved to standard time
as a proportion of standard time to time saved
Q.2
In labour oriented manufacturing industry which method of overhead absorption is suitable?
Direct material cost method
Prime cost method
Labour hour method
Machine hour method
Q.3
Fixed cost per unit increases when _______.
variable cost per unit increases
variable cost per unit decreases
production volume increases
production volume decreases
Q.4
The process of grouping of costs according to some common characteristics ________.
absorption
primary distribution
secondary distribution
classification
Q.5
Basic objective of cost accounting is ________
tax compliance.
financial audit.
cost ascertainment.
profit analysis.
Q.6
Process costing is suitable for ________.
hospitals
oil refing firms
transport firms
brick laying firms
Q.7
Cost classification can be done in ________.
two ways
three ways
four ways
several ways
Q.8
Discarded material substances having some value is ________.
waste
scrap
defective
spoilage
Q.9
Which of the following is NOT a selling overhead?
Insurance to cover sold goods while in transit
Royalty on sales
Legal cost on debt realization
Distribution of samples
Q.10
Idle capacity of a plant refers to the difference between ________.
maximum capacity and practical capacity
practical capacity and normal capacity
practical capacity and capacity based on sales expectancy
maximum capacity and actual capacity
Q.11
Bad debt is an example of ________.
production overhead
administrative overhead
selling overhead
distribution overhead
Q.12
Variable cost per unit ________.
varies when output varies
remains constant
increase when output increases
decreases when output decreases
Q.13
Increase in total variable cost is due to ________.
increase in fixed cost
increase in sales
increase in production
increase in efficiency
Q.14
Labour cost is the second element of ________.
cost
profit
sales
task
Q.15
How many rate are used to calculate wages under Taylor's differential piece rate system?
two
three
four
five
Q.16
The loss which arise in manufacturing activity on account of inherent nature of the product is ________.
normal loss
abnormal loss
net loss
gross loss
Q.17
Fire insurance of stock can be apportioned on the basis of ________.
value of stock
volume of stock
number of stores requisition
material used
Q.18
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.19
Direct expenses are also called ________.
major expenses
chargeable expenses
overhead expenses
sundry expenses
Q.20
Over time is ________.
actual hours being more than normal time
actual hours being more than standard time
standard hours being more than actual hours
actual hours being less than standard time
Q.21
Time keeping refers to _______.
time spent by worker on their job
time spent by workers in the factory
time spent by workers without work
time spent by workers off their job
Q.22
Audit fess is a part of _______.
works on cost
selling overhead
distribution overhead
administration overhead
Q.23
Cost accounting concepts include all the following except ________.
planning
controlling
profit sharing
product costing
Q.24
Indirect material used in production is classified as ________.
office overhead
selling overhead
distribution overhead
factory overhead
Q.25
Warehouse rent is a part of ________.
prime cost
factory cost
distribution cost
production cost
Q.26
An example of fixed cost ________.
property tax
rent for building
direct material cost
direct wages
Q.27
The process of allocating and apportioning the costs on suitable basis to all the departments is _______.
departmentalization
primary distribution
secondary distribution
classification
Q.28
Generally types of stores are classified into ________.
two types
three types
four types
five types
Q.29
The allotment of whole item of cost to cost centre or cost units is called _________.
cost allocation
cost apportionment
cost absorption
cost disbursement
Q.30
Packing cost is ________.
production cost
selling cost
administration cost
distribution cost
Q.31
Labour productivity can NOT be measured by comparing ________.
actual time with standard time
total output with total man hours
added value for the product with total wage cost
total wage and total output
Q.32
Given that for a job standard time is 8 hrs, actual time taken is 6 hrs and the time rate is Rs 2 per hr What is the total wages under Halsey premium plan?
Rs. 12
Rs. 14
Rs. 16
Rs. 18
Q.33
Toy manufacturing industry should use _______.
unit costing
process costing
batch costing
multiple costing
Q.34
Cost unit of a sugar industry can be ________.
per litre
per tonne
per acre
per metre
Q.35
Indirect material scrap is adjusted along with ________.
prime cost
factory cost
labour cost
cost of goods sold
Q.36
Tender is an _______.
estimation of profit
estimation of cost
estimation of selling price
estimation of units
Q.37
Total of all direct costs is termed as ________.
prime cost
works cost
cost of sales
cost of production
Q.38
The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock ________.
Simple average method
weighted average method
periodical average method
periodic simple average method
Q.39
Under which method the rate of wages are linked with the cost of living index?
Flat time rate
High day rate
Measured day rate
Graduated time rate
Q.40
The process of setting standards and comparing actual performance with standards with a view to control the cost is ________.
cost reduction
cost control
cost allocation
cost ascertainment
Q.41
Under ABC method of material control, the material are classified according to __________.
its value
its usage
its nature
its availability
Q.42
This is a point at which the store keeper should initiate purchase requisition for fresh supply It is ________.
maximum stock level
minimum stock level
reorder level
average stock level
Q.43
Directors remuneration and expenses form part of ________.
production overhead
administrative overhead
selling overhead
distribution overhead
Q.44
Absorption means ________.
charging overheads to cost centres
charging of overheads to cost units
charging of overheads to cost centres or cost units
allotment of overheads to different departments
Q.45
Which of the following is a service department?
Refining department
Machining department
Receiving department
Finishing department
Q.46
Merricks multiple piece rate system has _______.
two rates
three rates
four rates
five rates
Q.47
Overhead is also known as ________.
ongoing cost
basic cost
extra cost
chargeable expenses
Q.48
Reorder level = ________.
maximum level - minimum level
maximum consumption X maximum reorder period
minimum consumption x minimum reorder period
normal consumption X normal reorder period
Q.49
When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is ________.
75%
80%
90%
120%
Q.50
Bonus under Halsey plan is paid ________.
at 50% of time saved
at 75% of time saved
at 80% of time saved
at 90% of time saved
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