Introduction To Cost & Management Accounting

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

50 Questions (50 Marks)

Your Name *

Address *

Contact No *

Mail id *

1- Which of these is not an objective of Cost Accounting? *

1 point

Ascertainment of cost

Determination of selling price

Cost control and cost reduction

Assisting shareholders in decision making

2- Responsibility centre can be categorized into: *

1 point

Cost centres only

Profit centres only

Investment centres only

Cost centres, profit centres and investment centres

3- Uncontrollable costs are the costs which….. be influenced by the action of a specified member of an undertaking *

1 point

Cannot

Can

May or may not

Must

4- Element/s of Cost of a product are:………….. *

1 point

Material only

Labour only

Expenses only

Material, Labour & Expenses

5- Conversion cost includes cost of converting ………….into………….. *

1 point

Raw material, WIP

Raw material, Finished goods

WIP, Finished goods

Finished goods, Saleable goods

6- Sunk costs are……… *

1 point

Relevant for decision making

Not relevant for decision making

Cost to be incurred in future

Future costs

7-Describe the method of costing to be applied in case of Nursing Home:………… *

1 point

Operating Costing

Process Costing

Contract Costing

Job Costing

8- Describe the cost unit applicable to the Bicycle industry: …….. *

1 point

Per part of bicycle

Per bicycle

Per tonne

Per day

9- Cost accounting…….. *

1 point

Deals with historic data

Has futuristic in approach

Both (a) & (b)

Neither (a) & (b)

10- Which of the following is feature of job costing? *

1 point

Single order

Single contract

Every job is cost unit itself

All of the above

11- ………………may be defined as the technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision-making. *

1 point

Direct Costing

Absorption Costing

Marginal Costing

Variance Analysis

12- In which of the following cost accounting has do not have any role? *

1 point

Price fixation

Inventory control

Service sector

Price sector

13- ……………… is form of specific order costing which applies where work is undertaken as per customer’s specific requirement. *

1 point

Batch costing

Operation costing

Job costing

Composite costing

14- Maintenance department in a factory is a ……………. *

1 point

Profit Centre

Investment Centre

Cost Driver

Service Centre

15- Interest paid on own capital not involving any cash outflow is example of __________ *

1 point

Product Cost

Opportunity Cost

Imputed Cost

Explicit Cost

16- ……………..is the aggregate cost related to a cost unit, which consists of a group of similar articles which maintain its identity throughout one or more stages of production. *

1 point

Pre-determined Costs

Batch Cost

Process Cost

Operation Cost

17- CIMA, London defines …………..as, “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” *

1 point

Management Accounting

Financial Accounting

Cost Accounting

Financial Management

18- Indirect costs ____________ to cost units or cost centres and have to be absorbed or recovered into cost units are termed a indirect costs. *

1 point

Cannot be directly allocated

Cannot be directly apportioned

Both (a) & (b)

Either (a) or (b)

19- Process Costing is generally adopted by ………………. *

1 point

Chemical industries

Oil refineries

Soap manufacturing

All of the above

20- Costs of direct material, direct labour and direct expenses can be directly allocated or indentified with a particular cost centres or a cost unit are the examples of …………… *

1 point

Common Costs

Indirect Costs

Differential Costs

Traceable Costs

21- …………..method of costing is under in large scale contract, as in case of building construction. *

1 point

Composite Costing

Multiple Costing

Operation Costing

Contract Costing

22- Indirect costs are also known as …………… *

1 point

Common Costs

Traceable Costs

Implicit Costs

Sunk Costs

23- …………..is a specialized system of job costing applied to long-term contracts. *

1 point

Composite Costing

Batch Costing

Direct Costing

Contract costing

24- ………… is the name given to the technique whereby standard costs are predetermined and subsequently compared with the recorded actual costs. *

1 point

Direct Costing

Absorption Costing

Marginal Costing

Variance Analysis

25- …………represents the resources that have been sacrificed to attain a particular objective. *

1 point

Expense

Cost

Assets

Liability

26- Indirect costs are ……….to cost centres or cost units. *

1 point

Allocated

Apportioned

Aggregated

Allowed

27-…………..method of costing is used when it is desired to ascertain the cost of carrying out an operation in a department. *

1 point

Operating Costing

Operation Costing

Composite Costing

Process Costing

28- A company presently does not utilise its available capacity. In case of full capacity utilisation, the cost per unit shall__________ *

1 point

Increase

Decrease

Remain constant

None of the above

29- Service costing is also known as……......... *

1 point

Operation Costing

Operating Costing

Direct Costing

Uniform Costing

30- One of the most important technique in cost planning is:……………… *

1 point

Direct Cost

Budget

Cost Sheet

Marginal Costing

31- CIMA, London defines……….as, “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” *

1 point

Management Accounting

Standard Costing

Budgetary Control

Cost Accounting

32- The variable cost per unit is:………... *

1 point

Variable in nature

Fixed in nature

Semi-variable in nature

None of the above

33- Which of the following difficulty is not faced at the time installation of costing system in any organization? *

1 point

Lack of support from top management

Resistance from the existing staff

Keen competition in overseas market

All of the above

34- The total cost of for producing 10 items is Rs. 15 and that for producing 15 items is Rs. 20.What is the fixed cost? *

1 point

Rs. 10

Rs. 15

Rs. 5

None of the above

35- The CIMA, London, defines a ………..as, “a unit of product or service in relation to which costs are ascertained.” *

1 point

Cost Unit

Cost Object

Profit Centre

Cost Centres

36- The cost accountant is intimately connected with the………….. *

1 point

Production

Marketing

Finance

All of the above

37- The term………is defined as the amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit. *

1 point

Differential Cost

Marginal Cost

Relevant Cost

Incremental Cost

38- Which of the following cannot be treated as are direct beneficiary of cost accounting? *

1 point

Management

Debtors

Employees

Shareholders

39- Pre-determined costs may be either…………… *

1 point

Standard cost

Estimated cost

Standard cost or estimated cost

Estimated cost but not a standard cost

40- Who may be order direct cost audit of a company, if in its opinion it is necessary to do so? *

1 point

The Ministry of Corporate Affairs

The Parliament

The Central Government

All of the above

41- Which of the following is not method of costing? *

1 point

Uniform Costing

Operating Costing

Operation Costing

Contract Costing

42- If financial records can yield all the necessary costing information, it is not necessary to have a separate costing department. *

1 point

False

True

Partly correct

Partly incorrect

43- A …………………. is a planned cost for a unit of product of service rendered. *

1 point

Standard cost

Marginal Cost

Opportunity Cost

Historical Cost

44- ………………is defined as, “the techniques and process of ascertaining costs.” *

1 point

Cost Accounting

Management Accounting

Costing

Cost Ascertainment

45- Historical cost is the actual cost, determined ……………. *

1 point

In advance

After the event

Estimated basis

By applying common sense

46- A power house in a factory is a………….. *

1 point

Service Centre

Production Centre

Profit Centre

Impersonal Cost Centre

47- The management accounting data is derived from the……….. *

1 point

Cost accounting

Financial Accounting

Cost & financial accounting

Financial management

48- ……………are those cost, which can be identified easily and indisputably with a unit of operation or costing unit or cost centre. *

1 point

Traceable Costs

Common Costs

Indirect Costs

Historical Cost

49- Service costing is used by………………. *

1 point

Power generation

Hospitals

Transport companies

All of the above

50- Which of the following report is not generated by a cost accounting? *

1 point

Consumption of material statements

Labour utilization statements

Earnings per share

Cost sheets

Your Feedback *

Submit

Clear form

Never submit passwords through Google Forms.

This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy

Forms