MCQGeeks
0 : 0 : 1
CBSE
JEE
NTSE
NEET
English
UK Quiz
Quiz
Driving Test
Practice
Games
Quiz
Commerce
Costing
Quiz 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Q.1
Costing system, which is a combination of process costing and job costing system is classified as
weighted costing system
average costing system
hybrid costing system
double costing system
Q.2
First step in constant gross margin percentage NRV method is to allocate joint to compute
Gross margin percentage
total production cost of each product
allocated joint costs
cost of split off point
Q.3
An additional cost, incurred for some specific activity to bring processed product on to next production stage is
partial cost
relevant cost
incremental cost
irrelevant cost
Q.4
A joint cost allocation method is based on relative value of total sales, at point of split off is classified as
sales value at split off method
joint costs at split off point method
joint products value at split off method
main product cost at split off method
Q.5
If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be
$10
$100
$1,000
$1,200
Q.6
Third step in process costing system is to
summarize flow of output
compute output in units
summarize total costs
compute cost for each equivalent unit
Q.7
Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as
incremental costing system
split off costing system
inventoriable costing system
operation costing system
Q.8
Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called
conversion expense costing system
inventory costing system
process costing system
job costing system
Q.9
Variance used by managers to check whether company has performed well and properly implemented strategies is considered as
strategic implementation
proper implementation
performance evaluation
well evaluated
Q.10
Weak relationship between cost and cost driver is indicated on a regression line, which is
curved
slightly sloped
completely sloped
dotted
Q.11
Manager who is responsible only for revenues of company can be categorized under the
profit center
investment center
cost center
revenue center
Q.12
System which measures budget, action and plan of each responsibility center is known as
budgeted accounting
action accounting
planned accounting
responsibility accounting
Q.13
In a joint process of production, product which yields low volume of sales as compared to total sales of other products is known as
Second incremental product
First incremental product
step down product
by-product
Q.14
Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as
financial budget
capital budget
cash flows budget
balanced budget
Q.15
Third step in developing operating budget is
analysis of batches
analysis of batches
analysis of products
making predictions about future
Q.16
Total cost related to work in process inventory is divided by total units of work done is used to calculate
Gross weighted margin
weighted average revenue
weighted average cost
weighted average conversion cost
Q.17
Significant feature of Kaizen Budgeting is
employee suggestion
customer suggestion
cost suggestion
price suggestion
Q.18
Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as
anticipated budgeting
number budgeting
predict budgeting
kaizen budgeting
Q.19
Cost influences by responsibility center manager who is considered as
manager cost
influential cost
center cost
controllable cost
Q.20
Examples of nonlinear cost functions are
step constant functions
step cost functions
step price functions
step object functions
Q.21
Relationship between cost and cost driver is economically plausible if goodness of fit
has meaning
has no meaning
has index values
has no index values
Q.22
Situation in which two or more independent variables are highly correlated is known as
price linearity
cost linearity
division linearity
multi-collinearity
Q.23
If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be
$5,000
$35,000
$15,000
$45,000
Q.24
Last step in developing operating budget is
implementing income
implementing decision
efficient implementation
effective implementation
Q.25
First step in estimation of cost function by using quantitative analysis is to
choose price estimation method
choose dependent variable
choose independent variable
choose cost estimation method
Q.26
If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be
3
0.5003
0.7003
2
Q.27
An ability of an accounting system, to point out use of resources in every step of production process is called
back-flush trails
audit trails
trigger trails
lead manufacturing trails
Q.28
Systematic flow of services, goods or information from buying material for product delivery to customers is known as
supply chain
value chain
material flow chain
manufacturing flow chain
Q.29
"For the financial year ended as on March 31, 20XX the figures extracted from the balance sheet of Xerox Limited as under:
Opening Stock Rs 29,000; Purchases Rs 2,42,000; Sales Rs 3,20,000; Gross Profit 25% of Sales.
Stock Turnover Ratio will be" :-
8 times
6 times
9 times
10 times
Q.30
If credit sales for the year is Rs 5,40,000 and Debtors at the end of year is Rs 90,000 the Average Collection Period will be
30 days
61 days
90 days
120 days
Q.31
The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current year of provision for taxation Rs 50,000 and Rs 65,000. If taxed paid during the current year amounted to Rs 70,000 then amount charge from Profit and Loss Account will be:
Rs 55,000
Rs 85,000
Rs 45,000
Rs 1,85,000
Q.32
An assumption, which states that there must be linear relationship between independent variable and dependent variable is
irrelevant range of linearity
relevant range of linearity
significant range
insignificant range
Q.33
Vertical difference, which measures distance between estimated and actual cost for every single observation is classified as
residual term
positive term
negative term
squared term
Q.34
In cost accounting, conference, quantitative analysis and account analysis methods are considered as
cost estimation methods
price estimation methods
unit estimation method
variable estimation method
Q.35
Component of total cost, which never changes with change in level of production is classified as
fixed cost
constant
variable
both a and b
Q.36
If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be
$5,000
$4,500
$5,500
$6,000
Q.37
If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be
678 packages
648 packages
658 packages
668 packages
Q.38
If relevant opportunity cost of capital is $2950 and relevant carrying cost of inventory is $6700, then relevant incremental cost will be
$9,650
$2,350
$3,750
$2,750
Q.39
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
relevant purchase order costs
relevant inventory carrying costs
irrelevant inventory carrying costs
relevant opportunity cost of capital
Q.40
An example of shrinkage costs is
incoming freight
storage costs
insurance
clerical errors
Q.41
If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be
$7,500
$7,000
$6,500
$6,000
Q.42
An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate
annual irrelevant ordering costs
annual relevant carrying costs
annual relevant ordering costs
annual irrelevant carrying costs
Q.43
Costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as
carrying costs
purchasing costs
stock-out costs
ordering costs
Q.44
Costs of goods acquired from suppliers is classified as
stock-out costs
ordering costs
carrying costs
purchasing costs
Q.45
The summarized balance sheet of Autolight Limited shows the balances of previous and current year of retained earnings Rs 25,000 and Rs 35,000. If dividend paid during the current year amounted to Rs 5,000 then profit earned during the year will be:
Rs 5,000
Rs 55,000
Rs 15,000
Rs 65,000
Q.46
"Following information is available of XYZ Limited for quarter ended June, 20XX
Fixed cost Rs 5,00,000
Variable cost Rs 10 per unit
Selling price Rs 15 per unit
Output level 1,50,000 units
What will be amount of profit earned during the quarter using the marginal costing technique?"
Rs 2,50,000
Rs 10,00,000
Rs 5,00,000
Rs 17,50,000
Q.47
Cost of product failure, error prevention and appraisals can be classified under
stocking costs
stock-out costs
costs of quality
shrinkage costs
Q.48
Activities related to coordinating, controlling and planning flow of inventory are classified as
decisional management
throughput management
inventory management
manufacturing management
Q.49
If demand in units is 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be
$200
$190
$160
$180
Q.50
Material or anything for which cost is to be measured is known as
measurement object
cost object
accounting object
budget object
0 h : 0 m : 1 s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqgeeks.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page