Cost Accounting and control – Multiple Choice Questions (MCQ) with Answers

Cost Accounting and control – Multiple Choice Questions (MCQ) with Answers

1-Cost estimation include(s) the following expenditure(s)

(A) pattern making

(B) tool making

(C) selling expenses

(D) all of the above

 

2-To calculate the probable cost of the product, knowledge of following factors involves

(A) Production time required

(B) Use of previous estimates of comparable parts

(C) Effect of change in facilities on costing rates

(D) All of the above

 

3-Cost accounting is a specialized branch of accounting which deals with

(A) classification, recording, allocation and control of costs

(B) classification, processing, allocation and directing

(C) classification, recording, planning and control of costs

(D) classification, recording, allocation and directing

 

4-Expenditure incurred on material, labour, machinery, production and inspection are summed up to find the

(A) Total cost of product

(B) Selling price of product

(C) Factory cost of product

(D) None of the above

 

5-Which of the following calculate the actual cost of product

(A) Cost estimation

(B) Costing

(C) Both (A) and (B)

(D) None of the above

 

6-The cost data provide invaluable information for taking the following managerial decision(s)

(A) To make or buy

(B) To own or hire fixed asset

(C) Determining the expansion or contraction policy

(D) All of the above

 

7-Match the following

Type of costing Type of industry
a. Job costing 1. Utility services
b. Process costing 2. Automobile industry
c. Departmental costing 3. ship building
d. Operating costing 4. paper making

The correct answer is

(A). a-2, b-3, c-1, d-4

(B). a-3, b-4, c-2, d-1

(C). a-4, b-2, c-1, d-3

(D). a-3, b-2, c-1, d-4

 

8-The method of unit costing is adopted by

(A) Transport services

(B) Steel industry

(C) Mines

(D) Bicycle industry

 

9- ____ costing is a type of job costing.

(A) Multiple

(B) Operating

(C) Unit

(D) Batch

 

10-The following is cost of direct materials

(A) Freight charges

(B) grease

(C) coolant

(D) cotton waste

 

11-The following is cost of indirect materials

(A) Lubricating oil

(B) Octroi

(C) Import duties

(D) Insurance

 

12-The payment made to the following is cost of direct labour.

(A) Machinist

(B) Supervisor

(C) Inspector

(D) Sweeper

 

13-The payment made to the following is cost of indirect labour.

(A) Time keeper

(B) Welder

(C) Moulder

(D) Turner

 

14-Cost of preparing drawings for the manufacture of a particular product is

(A) Cost of direct labour

(B) Cost of indirect labour

(C) Direct expenses

(D) Indirect expenses

 

15-The following is also known as overhead costs or on costs.

(A) Cost of direct labour

(B) Cost of indirect labour

(C) Direct expenses

(D) Indirect expenses

 

Answers:

1-(D), 2-(D), 3-(A), 4-(C), 5-(B), 6-(D), 7-(B), 8-(C), 9-(D), 10-(A), 11-(A), 12-(A), 13-(A), 14-(C), 15-(D)