Cost Accounting Multiple Choice Questions ( MCQS) Page-2. The following Cost Accounting Questions from different Past Papers etc, PPSC Past Papers, Fpsc Pass Papers, NTS and also from MCQS Bank. These Questions are helpful for the preparation of Written test for the Posts of Accountant, Cost Accountant, Auditor and any for any Accounts Related Jobs Tests.
Multiple Choice Questions on Cost Accounting
21. Horizon Ltd.
Manufactures product BM for last 5 years. The company maintains a margin of
safety of 37.5% with overall contribution to sales ratio of 40%. If the fixed
cost is ` 5 lakh, the profit of the company is
a. 24.00 laks
b. 12.50 lakh
c. 3.00 lakh
d. None of A, B, C
22. The
cost-volume-profit relationship of a company is described by the equation y = `
8,00,000 +
a. 40,00,000
b. 35,50,000
c. 24,00,000
d. 20,00,000
23. ABC Ltd. is having
400 workers at the beginning of the year and 500 workers at the end of the
year. During the year 20 workers were discharged and 15 workers left the
organization. During the year
a. 22.20%
b. 7.78%
c. 4.00%
d. 14.40%
24. One of the most
important tools in cost planning is:
a. Direct cost
b. Cost Sheet
c. Budget
d. Marginal Costing.
25. Economies and
diseconomies of scale explain why the:
a. Short-run average
fixed cost curve declines so long as output increases.
b. Marginal cost curve
must intersect the minimum point of the firm's average total cost curve.
c. Long-run average
total cost curve is typically U-shaped.
d. Short-run average
variable cost curve is U-shaped.
26. Which of the
following is not a relevant cost?
a. Replacement cost
b. Sunk cost
c. Marginal cost
d. Standard cost.
27. Which of the
following is an accounting record?
a. Bill of Material
b. Bin Card
c. Stores Ledger.
d. All of these.
28. The fixed-variable
cost classification has a special significance in preparation of :
a. Flexible Budget
b. Master Budget
c. Cash Budget
d. Capital Budget
29. Input in a process is
4000 units and normal loss is 20%. When finished output in the process is only
3240 units, there is an :
a. Abnormal loss of 40
units
b. Abnormal gain of 40
units
c. Neither abnormal loss
nor gain.
d. Abnormal loss of 60
units.
30. Idle capacity of a
plant is the difference between:
a. Maximum capacity and
practical capacity
b. Practical capacity
and normal capacity
c. Practical capacity
and capacity based on sales expectancy
d. Maximum capacity and
actual capacity.
31. When P/V ratio is 40%
and sales value is `10,000, the variable cost will be
a. 4000
b. 6000
c. 10000
d. Variable Cost cannot
be calculated from data given.
32. The forex component
of imported material cost is converted
a. At the rate on the
date of settlement
b. At the rate on the
date of transaction
c. At the rate on date
of delivery
d. None of the above.
33. Maximum possible
productive capacity of a plant when no operating time is lost , is its
a. Practical capacity
b. Theoretical capacity
c. Normal capacity
d. Capacity based on
sales expectancy
34. When production is
below standard specification or quality and cannot be rectified by
incurring
additional cost, it is
called
a. Defective
b. Spoilage
c. Waste
d. Scrap
35. CAS 8 requires each
type of utility to be treated as
a. Separate cost object
b. Not part of cost as
not include in material
c. Not part of cost as
they do not form part of product
d. Treated as
administrative overheads.
36. Selling and
distribution overhead does not include:
a. Cost of warehousing
b. Repacking cost
c. Transportation cost
d. Demurrage charges.
37. When overtime is required for meeting urgent orders, overtime premium should be
a. Charged to Costing
Profit and Loss A/c
b. Charged to overhead
costs
c. Charged to respective
jobs
d. None of the above.
38. Exchange losses or
gains after purchase transaction is complete is treated as
a. Product cost.
b. Overhead cost.
c. Purchase cost.
d. Finance cost
39. Selling price per
unit ` 15.00; Direct Materials cost per unit ` 3.50; Direct Labour cost per
unit ` 4.00 Variable Overhead per unit ` 2.00; Budgeted fixed production overhead costs are ` 60,000 per annum charged evenly across each month of the year. Budgeted production costs are 30,000 units per annum. What is the Net profit per unit under Absorption costing method.
a. 9.50
b. 15.00
c. 11.50
d. 3.50
40. Which of the
following cost is linked with the calculation of cost of inventories?
a. Product cost
b. Period cost
c. Both product and
period cost
d. Historical cost
Answers
21 c 22 a 23 b 24 c 25 c 26 b
27 c 28 a
29 b 30 d 31 b 32 b 33 c
34 b 35 a
36 d 37 c 38 d 39 d 40 a
