1. ……….set of account books are maintained
under Non – Integrated system.
a. One
b. Two
c. Three
d. Four
ANS: B
2. Idle time variance is always ……….
a. Favourable
b. Controllable
c. Profitable
d. Unfavourable
ANS: A
3. Wages control A/c is debited by……….
a. Direct wages only
b. Indirect wages only
c. Direct & Indirect wages
d. Not Direct Nor Indirect wages
ANS: A
4.Normal loss is ……….to process A/c.
a. Credited
b. Debited
c. Nominal
d. Ignored
ANS: C
5.What cost should be represents is an
……….cost.
a. Standard
b. Change In Quantity
c. Change In Wastage
d. Actual
ANS: A
6. Contribution margin is known as……….
a. Marginal Income
b. Gross Margin
c. Net Income
d. Net Profit
ANS: D
7 Activity Based Costing is a……….
a. Method of costing
b. Method of allocation
c. Technique of costing
d. Absorption
ANS: A
8. The transactions which influence the cost
are……….
a. Input
b. Output
c. Profit Centre
d. Cost Drivers
ANS: B
9. The difference between the Actual Quantity
and the Standard Quantity , multiplied by Standard Price is the ——-
a. Materials efficiency variance
b. Materials Volume variance
c. Materials price variance
d. Materials usage variance
ANS: D
10. Process cost is very much applicable
in—–
a. Construction Industry
b. Pharmaceutical Industry
c. Airline Industry
d. Railway Industry
ANS: B
11. An estimate of what cost should be is known
as ——
a. Actual cost
b. Ideal cost
c. Standard cost
d. Forecast cost
ANS: B
12. Sale of plant from site is ————-
a. Credited to Contract Account
b. Debited to Contract Account
c. Debited to Insurance Claim Account
d. Credited to Insurance Claim Account
ANS: B
13. After adjustment of scrap value, balance on
Abnormal Loss Account is transferred to——
a. Balance Sheet
b. Costing Profit and Loss Account
c. Process Account
d. Contract Account
ANS: B
14. In process costing , each producing
department is a—–
a. Cost unit
b. Cost Centre
c. Investment Centre
d. Sales Centre
ANS: D
15. A standard which is established for use
unaltered for an indefinite period is called—-
a. Current standard
b. Ideal standard
c. Basic standard
d. Expected standard
ANS: C
16. Cost of output is calculated at each
process —
a. Everyday
b. Periodically
c. Weekly
d. Monthly
ANS: A
17. The application of factory overheads
usually would be recorded as an increase in——
a. Cost of goods sold
b. Work – in – progress control
c. Factory overheads control
d. Finished goods control
ANS: B
18. —– is the person for whom the contract
job is undertaken
a. Contractor
b. Contractee
c. Sub-contractor
d. Job-worker
ANS: B
19. Issue of material is credited to ——
a. Stores ledger control account
b. WIP Control Account
c. Overheads Control Account
d. Labour Control Account
ANS: D
20. Fixed cost is equal to —–
a. Break even sales x Margin of Safety
b. Sales x Margin of Safety
c. Sales x Profit Volume Ratio
d. Profit Volume Ratio x Break even sales
ANS: D
21. Providing the power required to run
production equipment is an example of a ——
a. Unit level activity
b. Batch level activity
c. Product level activity
d. Organization sustaining activity
ANS: A
22. The cost variance is controllable when it
rises due to——-
a. Controllable circumstances
b. Non – controllable circumstances
c. Managerial efficiency
d. Workers efficiency
ANS: C
23. The term Standard Hours allowed measures
——-
a. Budgeted Output at Actual Hours
b. Budgeted Output at Standard Hours
c. Actual Output at Standard Hours
d. Actual Output at Actual Hours
ANS: C
24. Margin of Safety is referred to as—–
a. Excess of sales over break – even sales
b. Excess of sales over fixed cost
c. Excess of sales over variable cost
d. Excess of sales over budgeted sales
ANS: A
25. Work certified is valued at———-
a. Cost price
b. Cost or Market price whichever is less
c. Market price
d. Estimated price
ANS: A
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