Cost Accounting Multiple Choice Questions ( MCQS) Page-5. 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
81. Selling price per
unit is ` 15, total variable cost per unit is ` 9, and total fixed costs are 15,000 of
a. 3,000 units
b. 1,000 units
c. 1,667 units
d. 2,500 units
82. While constructing a
Break even chart, the gap between sales line and variable cost line shows
a. Fixed cost
b. Break even point
c. Contribution margin
d. Variable cost
83. All of the following
compose cost of goods sold EXCEPT:
a. Raw material
b. Labor
c. Capital
d. Factory overhead
84. Amount of
Depreciation on fixed assets will be fixed in nature if calculated under which
of the
a. Straight line method
b. Reducing balance
method
c. Some of year's digits
method
d. Double declining
method
85. Which of the
following is NOT a relevant cost to decision making?
a. Opportunity costs
b. Relevant benefits
c. Avoidable costs
d. Sunk costs
86. What would be the
attitude of the management in treating Sunk costs in decision making?
a. A periodic investment
of cash resources that has been made and should be relevant for
decision making
b. It is a past cost
which is not directly relevant in decision making
c. Management will treat
it as variable cost each time in decision making
d. None of the given
options
87. Mr. Aslam is running
his own personal Financial services business. He has been offered a job for a
salary of ` 45,000 per month which he does not availed. ` 45,000 will be
considered as:
a. Sunk Cost
b. Opportunity cost
c. Avoidable cost
d. Historical cost
88. Which of the given
cost does not become the part of cost unit?
a. Advertising expenses
b. Direct labor cost
c. Factory overhead cost
d. Cost of raw material
89. Budgeted Factory
overhead at two activity levels is as follows for the period.
Activity level Budgeted
factory overhead
Low 10,000 Hours ` 40,000
High 50,000 Hours `
80,000
Required: Identify
variable rate with the help of above mentioned data.
a. 4.00 per hour
b. 1.60 per hour
c. 1.00 per hour
d. 2.00 per hour
90. Which of the given
cost is NOT required to prepare Cost of Production Report?
a. Period cost
b. Material cost
c. Labour cost
d. Factory overhead cost
91. Identify the FOH rate
on the basis of machine hour?
a. 4.00
b. 4.08
c. 4.210
d. 4.35
92. Which of the given
will NOT be included for the calculation of equivalent units of material
under
a. Opening work in
process units
b. Closing work in
process units
c. Unit completed and
transferred out
d. None of the given
options
93. The basic assumption
made in direct costing with respect to fixed costs is that
a. Fixed cost is a
controllable cost
b. Fixed cost is a
product cost
c. Fixed cost is an
irrelevant cost
d. Fixed cost is a
period cost
94. The little Rock
Company shows Break even sales is ` 40, 500 and Budgeted Sales is ` 50,000.
a. 19%
b. 81%
c. 1.81%
d. Required more data to
calculate
95. A machine cost `
60,000 five years ago. It is expected that the machine will generate
future
Required: Identify the realizable value with the help of given data.
a. 60,000
b. 40,000
c. 35, 000
d. 38,000
Budgeted production
overheads `2,80,000
Actual machine hours
70,000 hours
Actual production
overheads `2,95,000
96. Cost of finished
goods inventory is calculated by:
a. Deducting total cost
from finished goods inventory
b. Multiplying units of
finished goods inventory with the cost per unit
c. Dividing units of
finished goods inventory with the cost per unit
d. Multiplying total
cost with finished goods inventory
97. Assuming no returns
outwards or carriage inwards, the cost of goods sold will be equal to:
a. Opening stock Less
purchases plus closing stock
b. Closing stock plus
purchases plus opening stock
c. Sales less gross
profit
d. Purchases plus
closing stock plus opening stock plus direct labor
98. All of the following
are essential requirements of a good wage system EXCEPT:
a. Reduced labor and
overhead costs
b. Reduced per unit
variable costs
c. Increased production
d. Increased operating
costs
99. Profit under
absorption costing will be higher than under marginal costing if :
a. Produced units >
Units sold
b. Produced units <
Units sold
c. Produced units =
Units sold
d. Profit cannot be
determined with given statement
100. Good Job Plc makes
one product which sells for ` 80 per unit. Fixed costs are ` 28,000 per month
and marginal costs are ` 42 per unit. What sales level in units will provide a
profit of ` 10,000?
a. 350 units
b. 667 units
c. 1,000 units
d. 1,350 units
Answers:
81 d 82 c 83 c 84 a
85 d 86 b 87 b 88 a 89 c
90 a 91 a
92 d 93 d 94 a 95 c 96 b
97 c 98 d
99 a 100 c
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