Overview of Cost – Corporate and Management Accounting MCQ

Dec 2016: Which of the following is not a part of the job order cost sheet___

: Following information is given:Direct material purchased: ₹ 6,00,000Direct material consumed : ₹ 7,00,000Direct labour: ₹ 3,00,000Direct expenses: ₹2,50,000Manufacturing overheads: ₹ 3,00,000Prime cost will be____

June 2016: Cost of production for 10,000 units: ₹ 1,60,000Opening stock of finished goods (1,000 units): ₹ 18,000Closing stock of finished goods (FIFO): ₹ 2,000 unitsSelling & distribution overheads: ₹ 2 per unit soldPro ht mark-up on selling price: 20%The amount of profit will be____

June 2016: From the following particulars relating to Job No. 555, ascertain the total cost:Direct materials 16,000Direct labour 8,000Direct expenses 1,600Works overheads are recovered on the basis of 50% on prime cost and administrative overheads at 10% of works cost. Choose the correct option

Dec 2015: Item(s) excluded from the cost sheet are

June 2015: Following information is available regarding an organization:Direct material purchased: ₹ 1,50,000Direct material consumed: ₹ 80,000Direct labour: ₹ 50,000Direct expenses: ₹ 30,000Manufacturing overheads: ₹ 20,000The prime cost for the organization is –

Dec 2014: Which of the following is not a type of job costing

Dec 2014: Which of the following is to be included while preparing a cost sheet

Following information relates to the production department of a factory:Materials used : ₹ 80,000Direct labour : ₹ 60,000Overheads : ₹ 40,000On an order carried out in the department, materials consumed amounted to ₹ 16,000. The overheads chargeable to this order on the basis of direct materials will be___

Dec 2016: Following information has been collected from cost records of Bright Ltd.:Direct material: ₹ 5,00,000Direct labour: ₹ 3,00,000Factory overheads: 20% of factory cost.The number of factory overheads will be:

Dec 2016: When the amount of overheads absorbed is less than the number of overheads incurred, it is called___

June 2016: Which of the following statements are true____(i) Conversion costs and overheads are interchangeable terms(ii) Notional cost and imputed cost means the same thing(iii) Cost accounting is not needed by a non-profit organization(iv) Rent on the owned building is included in cost accounts.Select the correct answer from the options given below

Dec 2015: Allotment of the entire costs to a cost centre or unit is known as___

June 2015: A product “whose direct material costs and direct labour costs are ₹ 200 and ₹ 100 would consume 3 hours, 4 hours and 5 hours in department A, B & C respectively. The overheads absorption rate is – A: ₹ 4.5 per hour, B: ₹ 5 per hour and C: ₹ 10.5 per hour. The total cost of the product is

June 2015: The budgeted fixed overheads amounted to ₹ 75,000. The budgeted & actual production amounted to 15,000 units & 20,000 units respectively. This means that there will be an___

Dec 2014: The budgeted fixed overheads amounted to ₹ 84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an___

Dec 2014: Rent, rates and taxes paid for the building are apportioned on the basis of____

June 2016: Direct labour cost will include___

June 2015: Which of the following is not an objective of time-booking__

Dec 2016: Amaze Ltd. had an opening inventory of 5,000 units costing ₹ 5 per unit on 1st April 2016. Following receipts and issues took place in April 2016:5th April 2016: Purchased 800 units @ ₹ 8 per unit12th April 2016: Purchased 200 units @ ₹ 8 per unit15th April 2016: Issued 3,000 units 25th April 2016: Purchased 1,000 units @ ₹ 9 per unitCost of inventory as of 30th April 2016 under weighted average basis will be____

June 2016: The technique of economic order quantity is losing significance since the development of

June 2016: XYZ Ltd. had 4,000 units of inventory in hand on 1st March 2016, costing ? 4 per unit. Purchases and issues of material during the month were as follows:The cost of inventory as of 31st March 2016 under FIFO and weighted average cost method will be

June 2015: In case of rising prices, the FIFO method will provide___

Dec 2014: In an inflationary situation, which system of inventory valuation shows higher profits

Dec 2016: In the management information system (MIS), top-level management uses

Dec 2016: A technique where standardized principles and methods of cost accounting are employed by a number of different companies is termed as

Dec 2016: Multiple costing is followed in___

Dec 2016: Statement – ISunk cost is one that has already been incurred and cannot be avoided by decisions in the future.
Statement – IIFor decision making, it is required that such cost should be incurred.Select the correct answer from the options given below:

June 2016: Management accounting does not include the function of

June 2016: Those fixed costs which continue to be incurred even when there is no production are called

June 2016: Cost Accounting Standard is related to bringing uniformity and consistency in the principles and methods of determining the selling and distribution overheads with reasonable accuracy.

Which one of the following statements is false___

June 2016: A process in which management is looking outward to examine how others achieve their performance levels and to understand the process they use, is called___

Dec 2015: A business unit is known to be a profit centre

Dec 2015: Conversion cost is the summation of

Dec 2015: Management accounting is basically concerned with

June 2015: Which of the following is the social purpose of cost audit –

June 2015: Sunk costs are____

June 2015: Interest on internally generated funds is an example of

June 2015: The establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds is known as

June 2015: Which of the following is generally used as a cost unit in the cement industry

Dec 2014: Which of the following is not true? Fixed costs remain fixed

Dec 2014: For a manufacturing company, which of the following is an example of period cost rather than a product cost

Dec 2014: The cost of selecting one course of action and forgoing the other is known as

Dec 2014: Relevant costs are

Dec 2014: The cost that increases as the volume of activity decreases within the relevant range, is known as

Dec 2014: The term used for process of ascertaining the cost’ is known as