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Quiz 5
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Q.1
Which one of following is main advantage of quantitative method?
non expression
non constant
objective
non objective
Q.2
In assumptions of specific analysis, normality of residuals is satisfied with use of
real price data
real cost data
multiplier data
divisional data
Q.3
Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called
economic order quantity purchasing
annual purchasing
just in time purchasing
both a and b
Q.4
Method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as
economic accounting
back-flush accounting
lean accounting
lead accounting
Q.5
Reorder point is divided by number of sold units for per unit of time to calculate
relevant carrying cost
relevant ordering cost
purchase order lease time
number of purchase orders
Q.6
In specification analysis, assumptions related to residuals states must be
worst
independent
dependent
good
Q.7
Deviations between estimated regression line and vertical deviations are classified as
fixed terms
indexed terms
variable terms
residual terms
Q.8
In regression analysis, if observed cost value is 50 and predicted cost value is 7, then disturbance term will be
57
43
67
47
Q.9
Cost pattern, when production inputs are to be used in discrete functions, but quantities are fractional, will be categorized as
continuously variable cost function
fixed cost function
mixed cost function
semi variable cost function
Q.10
Range, in which relationship exists between level of activity or total cost is called
functional range
relevant range
unit range
related range
Q.11
Relationship based on unrelated level of activity and past data of cost is measured with help of
cost estimation
price estimation
unit estimation
production estimation
Q.12
Purchase order lead time is multiplied to number of units is sold per unit of time to calculate
carrying costs
relevant total costs
economic order quantity
reorder point
Q.13
Costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as
stock-out costs
ordering costs
carrying costs
purchasing costs
Q.14
Relevant ordering costs are added into relevant carrying costs to calculate
relevant total costs
contribution costs
throughput costs
optimized costs
Q.15
A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as
in-time production
materials requirement planning
on-time production
pull strategy of production
Q.16
Relevant incremental costs are added into relevant opportunity cost of capital to calculate
purchase order costs
relevant inventory carrying costs
irrelevant inventory carrying costs
relevant ordering costs
Q.17
If economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be
16
12
10
14
Q.18
Number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate
annual irrelevant ordering costs
annual relevant carrying costs
annual relevant ordering costs
annual irrelevant carrying costs
Q.19
Costing system, which omits some of journal entries in accounting system is known as
in-time costing
trigger costing
back flush costing
lead time costing
Q.20
Bin Card is a?
Quantitative as well as value wise records of material received, issued and balance
Quantitative record of material received, issued and balance
Value wise records of material received, issued and balance
a record of labour attendance
Q.21
Stores Ledger is a:
Quantitative as well as value wise records of material received, issued and balance
Quantitative record of material received, issued and balance
Value wise records of material received, issued and balance
a record of labour attendance
Q.22
Re-order level is calculated as:
Maximum consumption x Maximum re-order period
Minimum consumption x Minimum re-order period
1/2 of (Minimum + Maximum consumption)
Maximum level - Minimum level
Q.23
________ refers to the verification of cost accounts and check on the adherence to the cost accounting plan.
Cost Audit
Costcentre
Costunit
Costprofit
Q.24
Direct material is a ________.
manufacturing cost
administrative cost
selling cost
distribution cost
Q.25
"Calculate the prime cost from the following information:
Direct material purchased: Rs. 1,00,000.
Direct material consumed: Rs. 90,000.
Direct labour: Rs. 60,000.
Direct expenses: Rs. 20,000.
Manufacturing overheads: Rs. 30,000."
Rs. 1,80,000
Rs. 2,00,000
Rs. 1,70,000
Rs. 2,10,000
Q.26
"Total cost of a product: Rs 10,000.
Profit: 25% on Selling Price
Profit is:"
Rs. 2,500
Rs. 3,000
Rs. 3,333
Rs. 2,000
Q.27
Element/s of Cost of a product are:
Material only
Labour only
Expenses only
Material, Labour and expenses
Q.28
Abnormal cost is the cost:
Cost normally incurred at a given level of output
Cost not normally incurred at a given level of output
Cost which is charged to customer
Cost which is included in the cost of the product
Q.29
Conversion cost includes cost of converting……… into ……
Raw material, WIP
Raw material, Finished goods
WIP, Finished goods
Finished goods, Saleable goods
Q.30
Sunk costs are:
relevant for decision making
Not relevant for decision making
cost to be incurred in future
future costs
Q.31
If purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be
14000 units
14500 units
15000 units
15500 units
Q.32
A profit centre is a centre ____________.
Where the manager has the responsibility of generating and maximising profits
Which is concerned with earning an adequate Return on Investment
Both of the above
Which manages cost
Q.33
Responsibility Centre can be categorised into:
Cost Centres only
Profit Centres only
Investment Centres only
Cost Centres, Profit Centres and Investment Centres
Q.34
Cost Unit is defined as:
Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed
A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control
Centres having the responsibility of generating and maximising profits
Centres concerned with earning an adequate return on investment
Q.35
Economic order quantity is that quantity at which cost of holding and carrying inventory is:
Maximum and equal
Minimum and equal
It can be maximum or minimum depending upon case to case
Minimum and unequal
Q.36
ABC analysis is an inventory control technique in which:
Inventory levels are maintained
Inventory is classified into A, B and C category with A being the highest quantity, lowest value
Inventory is classified into A, B and C Category with A being the lowest quantity, highest value
Either b or c
Q.37
Direct labour means ________.
labour which can be conveniently associated with aparticular cost unit
labour which completes the work manually
permanent labour in the production department
labour which is recruited directly and not through contractors
Q.38
The type of process loss that should not affect the cost of inventory value is _________.
abnormal loss
normal loss
seasonal loss
standard loss
Q.39
If the actual loss is more than the estimated normal loss, then it is _________.
abnormal loss
normal loss
seasonal loss
abnormal gain
Q.40
Operating costing is more suitable for ________ industries
profit
Services
Profit and service
government organisation
Q.41
Which of these is not an objective of Cost Accounting?
Ascertainment of Cost
Determination of Selling Price
Cost Control and Cost reduction
Assisting Shareholders in decision making
Q.42
Which of these is not a Material control technique:
ABC Analysis
Fixation of raw material levels
Maintaining stores ledger
Control over slow moving and non moving items
Q.43
In process costing, a joint product is:
a product which is later divided into many parts
a product which is produced simultaneously with other products and is of similar value to at least one of the other products.
A product which is produced simultaneously with other products but which is of a greater value than any of the other products.
a product produced jointly with another organization
Q.44
Out of the following, what is not the work of purchase department:
Receiving purchase requisition
Exploring the sources of material supply
Preparation and execution of purchase orders
Accounting for material received
Q.45
Describe the method of costing to be applied in case of Nursing Home:
Operating Costing
Process Costing
Contract Costing
Job Costing
Q.46
Fixed cost is a cost:
Which changes in total in proportion to changes in output
which is partly fixed and partly variable in relation to output
Which do not change in total during a given period despite changes in output
which remains same for each unit of output
Q.47
Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.
can not
can
may or may not
must
Q.48
Which of the following item of expenses will not appear in cost accounting.
Direct material cost
Factory overheads
Selling Expenses
Loss on sale of fixed assets
Q.49
The term cost refers to ________.
the present value of future benefits
the value of sacrifice made to acquire goods or services
an asset that has given benefit but now expired
the price of products sold or services rendered
Q.50
Cost accounting differs from financial accounting in respect of ________.
reporting of cost
ascertainment of cost
control of cost
recording of cost
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