Multiple Choice Questions on Cost Accounting

Multiple Choice Questions on Cost Accounting

1-Cost accounting differs from financial accounting in respect of

(A) Ascertain cost

(B) Recording of cost

(C) Reporting of cost

(D) Control of cost

 

2-Cost centres are created for

(A) Segregating costs into fixed and variable

(B) Control and fixing responsibility

(C) Making decisions

(D) Ascertaining profit

 

3-Variable cost change ___ with change in output.

(A) Proportionality

(B) Industry

(C) Inversely

(D) Indirect

 

4-A product cost estimate derived from a competitive market price is called as

(A) Target cost

(B) Periodic cost

(C) Sunk cost

(D) Multiple cost

 

5-Imputed cost is a

(A) Notional cost

(B) Real cost

(C) Abnormal cost

(D) Variable cost

 

6-Warehouse rent is a part of

(A) Prime cost

(B) Distribution overhead

(C) Selling overhead

(D) Factory overhead

 

7-LIFO stands for

(A) Loss in first out

(B) Last in first out

(C) Last in fast out

(D) Last in first output

 

8-Replacement price method is

(A) The current purchase price of material is charged on the issues

(B) The current market price of material is charged on the issues

(C) The old market price of material is charged on the issues

(D) The cost price of the material is charged on the issues

 

9-Small tools purchased are

(A) Charged to overhead expenses at the time of purchase

(B) Charged to machinery account

(C) Charged to jobs during the period of purchase

(D) Charged to costing Profit and Loss account

 

10-Which of the following statements regarding techniques of inventory control are correct?

(A) Fixation of selling price with good profit  

(B) Establishment of inventory budgets

(C) Establishment of inventory sales

(D) Fixation of profit with high return

 

ANSWERS:

1-(D), 2-(B), 3-(A), 4-(A), 5-(A), 6-(B), 7-(B), 8-(B), 9-(A), 10-(B)