Cost Accunting
F.Y.BAF Cost Accunting Multiple Choice Questions With Answers
1) The cost Accounting system is developed for _______________ .
A) Financial institutionB) GovernmentC) ManagementD) Shareholders
Ans : Management
2) Cost Accounting is an _____________ reporting system.
A) ExternalB) GovernmentC) FinancialD) Internal
Ans : Internal
3) A location for which cost is incurred is a ______________ .
A) Revenue centreB) Cost centreC) Profit centreD) Produaction centre
Ans : Cost centre
4) Product cost is _______________ cost.
A) FixedB) PrimeC) IndirectD) Variable
Ans : Variable
5) Cost which can be identified with the output is called as ____________ .
A) ProductB) FixedC) DirectD) Indirect
Ans : Direct
6) Interest on capital is ____________ cost.
A) SunkB) ImputedC) DirectD) Indirect
Ans : Imputed
7) Overheads incurred in connection with factory is called _____________ overheads.
A) OfficeB) FactoryC) SellingD) None of the above
Ans : Factory
8) The cost which remains constant irrespective of output is called _____________ cost.
A) VariableB) ProductC) SunkD) Fixed
Ans : Fixed
9) Direct labour and factory overheads is called ___________ cost.
A) ConversionB) DirectC) PackingD) Indirect
Ans : Conversion
10) Cost of designing is ___________ expenses.
A) OfficeB) ProductionC) IndirectD) Direct
Ans : Direct
11) The most important element of cost is ____________ .
A) MaterialB) OverheadsC) LabourD) Chargeable Exp.
Ans : Material
12) Request to the supplier to supply material is an _____________ .
A) Re-orderB) Purchase OrderC) sale invoiceD) None of the above
Ans : Purchase Order
13) ___________ are fixed to control inventory.
A) Maximum LevelB) Minimum LevelC) Re-Order LevelD) Inventory Levels
Ans : Inventory Levels
14) ____________ indicates maximum stock to be maintained.
A) Maximum LevelB) Minimum LevelC) Re-Order LevelD) Danger Level
Ans : Maximum Level
15) Economical size of order is called as ____________ .
A) ProductionB) EOQC) None of the above
Ans : EOQ
16) ___________ shows minimum stock to be maintained.
A) Minimim Stock LevelB) Maximum Stock LevelC) Average Stock LevelD) None of the above
Ans : Minimim Stock Level
17) Scientific purchasing begins with __________.
A) IndentingB) InspectionC) OrderingD) Selection of the supplier
Ans : Indenting
18) Goods received note is prepared by ___________.
A) PurchaseB) StoresC) FinanceD) Sales
Ans : Stores
19) ________ shows stock position at the bin.
A) EOQB) ABCC) Bin CardD) None of the above
Ans : Bin Card
20) ___________ is decided on the basis of ordering cost and carrying cost.
A) EOQB) Maximum Stock LevelC) Minimum Stock LevelD) Average Stock Level
Ans : EOQ
21) Dial Time recorder has ___________ holes.
A) 360B) 200C) 500D) 160
Ans : 160
22) _________ card is placed at the entrance of the factory.
A) Job cardB) Clock CardC) None of the above
Ans : Clock Card
23) Time __________ is essential for costing purpose.
A) RecordsB) BookingC) CostingD) None of the above
Ans : Booking
24) ________ shows effective use of time.
A) Time allowedB) Effective use of timeC) Idle Time CardD) None of the above
Ans : Idle Time Card
25) Piece workers are paid wages on __________ basis.
A) Piece RateB) Time RateC) Time saved basisD) None of the above
Ans : Piece Rate
26) Casual workers are appointed in place of _________ .
A) Retrenched workersB) AbsenteesC) Sincere workersD) None of the above
Ans : Absentees
27) Time ________ is necessary for pay roll.
A) KeepingB) RecordsC) BookingD) None of the above
Ans : Booking
28) Time __________ is done to ascertain labour cost.
A) RecordsB) BookingC) ControllingD) None of the above
Ans : Booking
29) ____________ sheet is the method of time booking.
A) Daily TimeB) Attendance RegisterC) Time clockD) None of the above
Ans : Daily Time
30) The card which shows time spent by a worker is called __________ card.
A) Job TickerB) Salary slipC) JobD) None of the above
Ans : Job
31) Indirect cost is known as ________ .
A) Indirect overheadsB) OverheadsC) Work overheadsD) Chargeable overheads
Ans : Overheads
32) Cost incurred to secure orders is ____________.
A) Selling overheadsB) Office overheadsC) Variable overheadsD) None of the above
Ans : Selling overheads
33) Material which cannot be charged directly ___________ .
A) Direct materialB) Indirect materialC) OverheadsD) None of the above
Ans : Indirect material
34) Rent of building is ____________ overheads.
A) Fixed overheadB) Indirect overheadsC) Direct overheadsD) None of the above
Ans : Fixed overhead
35) Cost which can be controlled is ___________ cost.
A) ChargeableB) ControllableC) OverheadsD) None of the above
Ans : Controllable
36) Cost of abnormal idle time is ____________ overheads.
A) AbnormalB) NormalC) ProductionD) None of the above
Ans : Abnormal
37) Depreciation on machinery is charged under ___________ overheads.
A) Factory overheadsB) Office overheadsC) Direct overheadsD) Indirect overheads
Ans : Factory overheads
38) Royalty on production is a __________ charge.
A) DirectB) IndirectC) OverheadsD) None of the above
Ans : Direct
39) Costing department expenses are considered as __________ overheads.
A) Administrative overheadsB) Production overheadsC) Office overheadsD) Selling overheads
Ans : Administrative overheads
40) Stationery in production dept is ___________ material.
A) IndirectB) DirectC) FixedD) None of the above
Ans : Indirect
41) _____________ cost is imputed cost.
A) Interest on CapitalB) VariableC) Out of pocketD) Opportunity
Ans : Interest on Capital
42) Interest on capital is ___________.
A) Overheads CostB) Imputed CostC) Sunk CostD) Avoidable Cost
Ans : Imputed Cost
43) Drawing office salaries ____________ overheads.
A) FactoryB) OfficeC) SellingD) Distribution
Ans : Factory
44) Prime cost is ____________ cost.
A) Direct CostB) Indirect CostC) Factory CostD) Production Cost
Ans : Direct Cost
45) Overheads are ________ cost.
A) Direct CostB) Indirect CostC) Production CostD) Variable Cost
Ans : Indirect Cost
46) Factory Cost is = Prime Cost +
_________ .
A) Direct CostB) Factory OverheadsC) Cost of ProductionD) None of the above
Ans : Factory Overheads
47) Cost of Production is = Factory Cost + __________ .
A) Factory OverheadsB) Office overheadsC) Direct CostD) Prime Cost
Ans : Office overheads
48) Cost of Sales = Cost of Production + __________ .
A) Selling OverheadsB) Direct CostC) Factory OverheadsD) Factory cost
Ans : Selling Overheads
49) Sales = Total ________ + Profit.
A) ProductionB) PriceC) CostD) Overheads
Ans : Cost
50) In costing stock valuation is done at __________ .
A) Cost of ProductionB) Cost of MaterialC) Cost of Finished GoodsD) Cost of Sale
Ans : Cost of Production
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F. Y. BAF