Cost Accounting Multiple Choice Questions ( MCQS) Page-4. 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
61. Which of the
following statement is TRUE about the relevant cost?
a. It is a sunk cost
b. It is an opportunity
cost
c. It do not affect the
decision making process
d. All costs are
relevant
62. In decision making
all costs already incurred in past should always be:
a. Ignored
b. Considered
c. Partially ignored
d. Partially considered
63. Which of the
following statement is TRUE about historical cost?
a. It is always relevant
to decision making
b. It is always
irrelevant to decision making
c. It is always an
opportunity cost
d. It is always
realizable value
64. In cost accounting,
unavoidable loss is charged to which of the following?
a. Factory over head
control account
b. Work in process
control account
c. Marketing overhead
control account
d. Administration
overhead control account
65. Merrick Differential
Piece Rate Plan based on _____________piece rates is fixed.
a. Two
b. Three
c. Four
d. Five
66. Which of the given is
(are) the method(s) of measurement of Labor Turnover?
a. Separation method
b. Flux method
c. Replacement method
d. All of the given options
67. What will be the
impact of normal loss on the overall per unit cost ?
a. Per unit cost will
increase
b. Per unit cost will
decrease
c. Per unit cost remain
unchanged
d. Normal loss has no
relation to unit cost
68. Which of the given
units can never become part of first department of Cost of Production
Report?
a. Units received from
preceding department
b. Units transferred to
subsequent department
c. Lost units
d. Units still in
process
69. Details of the
process for the last period are as follows:
Put into process 5,000 kg
Materials ` 2,500
Labor `700
Production overheads 200%
of labor
Normal losses are 10% of
input in the process. The output for the period was 4,200 Kg from the
process. There was no
opening and closing Work- in- process. What were the units of abnormal
loss?
a. 500 units
b. 300 units
c. 200 units
d. 100 units
70. ABC Company makes a
single product which it sells for ` 20 per unit. Fixed costs are ` 75,000
per
month and product has a
profit/volume ratio of 40%. In that period actual sales were ` 225,000.
Required: Calculate ABC
Company Break Even point in `
a. 187, 500
b. 562, 500
c. 1,500,000
d. None of the given
options
71. All of the following
are the features of fixed costs EXCEPT:
a. Although fixed within
a relevant range of activity level but are relevant to a decision making
when it is avoidable.
b. Although fixed within
a relevant range of activity level but are relevant to a decision making
when it is incremental.
c. Generally it is
irrelevant
d. It is relevant to
decision making under any circumstances
72. A typical factory
overhead cost is:
a. Distribution
b. Internal audit
c. Compensation of plant
manager
d. Design
73. An average cost is
also known as:
a. Variable cost
b. Unit cost
c. Total cost
d. Fixed cost
74. Period costs are:
a. Expensed when the
product is sold
b. Included in the cost
of goods sold
c. Related to specific
period
d. Not expensed
75. While calculating the
EOQ, number of orders is calculated by:
a. Dividing required
unit by ordered quantity
b. Multiplying the
required units with ordered quantity
c. Multiplying the
ordered quantity with cost per order
d. Multiplying the
required units with cost per order
76. Which of the
following best describe piece rate system?
a. The increased volume
of production results in decreased cost of production
b. The increased volume
of production in minimum time
c. Establishment of fair
standard rates
d. Higher output is a
result of efficient management
77. The term Cost
apportionment is referred to:
a. The costs that can
not be identified with specific cost centers.
b. The total cost of
factory overhead needs to be distributed among specific cost centers but
must be divided among
the concerned department/cost centers.
c. The total cost of
factory overhead needs to be distributed among specific cost centers.
d. None of the given
options
78. Which of the
following loss is not included as part of the cost of transferred or finished
goods, but rather treated as a period cost?
a. Operating loss
b. Abnormal loss
c. Normal loss
d. Non-operating loss
79. Hyde Park Company
produces sprockets that are used in wheels. Each sprocket sells for ` 50
and
the company sells
approximately 400,000 sprockets each year. Unit cost data for the year
follows:
Direct material ` 15
Direct labor ` 10
Other cost:
Manufacturing
Distribution
Fixed
` 5
` 4
Variable
` 7
` 3
Required: Identify the
unit cost of sprockets under direct costing
a. 44
b. 37
c. 32
d. 35
80. When production is
equal to sales, which of the following is TRUE?
a. No change occurs to
inventories for either use absorption costing or variable costing methods
b. The use of absorption
costing produces a higher net income than the use of variable costing
c. The use of absorption
costing produces a lower net income than the use of variable costing
d. The use of absorption
costing causes inventory value to increase more than they would though
the use of variable
costing
Answers
61 b 62 a 63 b
64 a 65 b 66 d 67 a 68 a
69 b 70 d
71 d 72 c 73 b 74 c 75 a
76 b 77 c
78 b 79 d 80 a
