MCQ’s

Answer the Questions in

1 Minute
Title and Content Layout with List
 UNIT – 1
Introduction to
Cost Accounting,
Material Costing
START
TIME’S
TIMER
UP! Overheads refers to:
• All the indirect costs
• All the direct costs
• Labour cost
• Material cost
All the indirect
costs
START
TIME’S
TIMER
UP! Which of the following is not
considered while calculating
the prime cost?
A.Direct Material
B.Factory Overheads
C. Labour cost
D.Carriage Inwards
 Factory
Overheads
START
TIME’S
TIMER
UP! Which of the following is not
the part of selling and
distribution cost?
A.Carriage outwards
B.Printing and stationary
C. Warehouse rent
D.Showroom rent
Printing and
stationary
START
TIME’S
TIMER
UP! Which of the following will not
be considered while
calculating Administration
overheads?
A.Carriage Inwards
B.Director’s salary
C. Printing expenses
D.Rent of office
Carriage Inwards
START
TIME’S
TIMER
UP! Calculate prime cost from the
following:
Material consumed: Rs. 5,000;
Direct Labour :Rs. 1,300; Direct
Expenses: Rs. 4,700
Prime cost will be:
A.12,000
B.14,500
C. 13,000
D.11,000
11,000
START
TIME’S
TIMER
UP! Calculate prime cost
Opening stock of raw material:
Rs.50,000 ; Purchase of raw
materials: Rs.12,000; Closing Stock
of Raw materials: Rs. 22,000;
Direct Expenses: Rs. 5,000:
A.45,000
B.35,000
C. 55,000
D.65,000
45,000
START
TIME’S
TIMER
UP! Calculate administration
overheads from the following:
Salaries: Rs. 50,000; Office
Lightening: Rs. 4,500; Printing
and Stationery:Rs.5,000
A.49,500
B.59,500
C. 65,500
D.75,500
59,500
START
TIME’S
TIMER
UP! Calculate selling and
distribution expenses
Warehouse rent: Rs. 50,000;
Warehouse maintenance:
Rs.4,500 ; Showroom Rent: Rs.
48,000;
A.1,35,000
B.1,25,000
C. 1,02,500
D.2,25,000
102500
START
TIME’S
TIMER
UP! Find EOQ from the following
Annual Consumption: 36,000
units; cost of ordering- Rs. 25
per order; Cost of material:
Rs.1 per unit; carrying cost-
20% of average inventory:
A.3,000 units
B.1,200 units
C. 1,400 units
D.1,500 units
3000 units
START
TIME’S
TIMER
UP! Calculate EOQ
Annual Consumption: 20000
units; cost of ordering- Rs. 10
per order; Cost of material:
Rs.100 per unit; carrying cost-
10 %
A.200 units
B.600 units
C. 900 units
D.400 units
200 Units
START
TIME’S
TIMER
UP! Maximum level = Re-order
level + re-order Quantity
( ______________ X Minimum re-
order period). Fill in the
blanks:
A.Minimum Consumption
B.Normal consumption
C. Maximum Consumption
D.Re-order Consumption
 Minimum
Consumption
START
TIME’S
TIMER
UP! Minimum Level=
____________________ - (Normal
Consumption X Normal re-
order period).
Fill in the blanks.
A.Re-order Level
B.Normal Level
C. Maximum Consumption
D.Minimum Consumption
Re-order Level
START
TIME’S
TIMER
UP! Which of the following is not
an indirect cost?
A.Legal charges
B.Office rent
C. Printing and stationery
D.Cost of raw material
Cost of raw
material
START
TIME’S
TIMER
UP! Which of the following is the
technique of Inventory control
A.ABC Technique
B.EOQ Analysis
C. Maximum re-order level
D.All of the above
All of the above
START
TIME’S
TIMER
UP! Calculate the maximum level
Consumption: 3,000 - 9,000
units per week; re-order
Quantity: 36,000 units
Time required for delivery: 4 -
6 weeks.
A.1,04,000
B.1,07,000
C. 78,000
D.1,05,000
78,000
START
TIME’S
TIMER
UP! Calculate the minimum level
Consumption: 3,000 - 9,000
units; re-order Quantity:
36,000 units
Time required for delivery: 4 -
6 weeks
A.55,500
B.24,000
C. 32,000
D.36,000
24,000
START
TIME’S
TIMER
UP! Which of the following is not
the objective of cost planning?
A.Tax planning
B.Cost control
C. Cost Ascertainment
D.Budget preparation
Tax planning
START
TIME’S
TIMER
UP! The method based on
assumption that materials
which are purchased first will
be issued first is known as:
A.First In First Out
B.Last In First Out
C. Highest In First Out
D.Lowest In First Out
First In First Out
START
TIME’S
TIMER
UP! What does EOQ stands for:
A.Economic Order Quantity
B.Efficient Order Quantity
C. Effective Order Quality
D.Economic Other Quantity
Economic Order
Quantity
START
TIME’S
TIMER
UP! ____________ may be defined as
the potential benefit that is
lost or sacrificed when the
selection of one alternative
makes it necessary to give up
competing alternative:
A.Marginal Cost
B.Standard Cost
C. Imputed cost
D.Opportunity cost
Opportunity cost
START
TIME’S
TIMER
UP! _____________ is the cost of
producing one additional unit.
A.Opportunity cost
B.Marginal cost
C. Replacement cost
D.Imputed cost
Marginal cost
START
TIME’S
TIMER
UP! Factory cost is also known as
__________:
A.Work cost
B.Administration Overheads
C. Selling overheads
D.Distribution Overheads
Work cost
START
TIME’S
TIMER
UP! Which of the following items
is not a part of Cost sheet?
A.Office Salaries
B.Donations
C. Warehouse Repairs
D.Factory Rent
Donations
START
TIME’S
TIMER
UP! Which of the following items
is not a part of cost sheet?
A.Legal expenses
B.Factory rent
C. Raw material cost
D.Interest on Debentures
Interest on
Debentures
START
TIME’S
TIMER
UP! In the ABC technique of Inventory
Control ‘A’ items represents:
A.The items that are high in value
and low in quantity
B.The items that are low in value
and high in Quantity
C. The items that are medium in
value and high in Quantity
D.The items that are low in value
and medium in Quantity
 The items that
are high in value
and low in
quantity
START
TIME’S
TIMER
UP! What is the method of
preparing store ledger that is
based on the assumption that
last purchase of materials are
issued first and earlier
receipts are issued in the last.
A.First In First Out
B.Last In First Out
C. Highest In First Out
D.Lowest In First Out
Last In First Out
 UNIT – 2
Marginal Costing
and CVP Analysis
START
TIME’S
TIMER
UP! The term contribution refers
to…
a. The difference between
selling price and fixed cost
b. The difference between
selling price and variable cost
c. Profit
d. None of these
 The difference
between selling
price and variable
cost
START
TIME’S
TIMER
UP! Sales Rs. 100000, variable cost
Rs. 40000 and net profit ratio
is 10% on sales, find out fixed
cost.
a. 40000
b. 60000
c. 50000
d. 70000
50000
START
TIME’S
TIMER
UP! Profit volume ratio establishes
the relationship between…
a. Contribution and profit
b. Fixed cost and contribution
c. Profit and sales
d. Contribution and sales
value
Contribution and
sales value
START
TIME’S
TIMER
UP! Contribution/sales is equal
to…
a. P/V ratio
b. Net profit ratio
c. Break Even Point
d. Earning Per Share
P/V ratio
START
TIME’S
TIMER
UP! The profit at which total
revenue is equal to total cost is
called…
a. Break Even Point
b. Margin of safety
c. Break even analysis
d. None of these
Break Even Point
START
TIME’S
TIMER
UP! Expenses that do not vary
with the volume of production
are known as…
a. Fixed expenses
b. Variable expenses
c. Semi‐variable expenses
d. None of these
Fixed expenses
START
TIME’S
TIMER
UP! ________ is the excess of sales
over the break even sales.
a. Actual sales
b. Total sales
c. Margin of safety
d. Net sales
Margin of safety
START
TIME’S
TIMER
UP! The formula for Margin of
Safety is one of the following…
a. PV ratio/profit
b. Profit/P/v ratio
c. Profit/sales
d. Contribution/fixed cost
Profit/P/v ratio
START
TIME’S
TIMER
UP! Marginal costing is the most
useful technique for the…
a. Shareholders
b. Management
c. Auditors
d. Creditors
Management
START
TIME’S
TIMER
UP! Variable Costing is also known
as:
a. Direct/marginal costing
b. Absorption costing
c. Activity based costing
d. Normal costing
Direct/marginal
cost
START
TIME’S
TIMER
UP! Direct materials: $5 pu; Direct
labor: $4 pu; Variable mfg
overhead: $3 pu; Fixed mfg
overhead: $6,000 p.a. The
variable cost to manufacture
one unit of product X is:
a. 18
b. 9
c. 15
d. 12
12
START
TIME’S
TIMER
UP! A variable costing income
statement is helpful in CVP
analysis. It is therefore also
known as:
a. contribution margin income
statement
b. gross margin income statement
c. net operating income statement
d. final income statement
 contribution
margin income
statement
START
TIME’S
TIMER
UP! Which of the following is the
technique of CVP Analysis?
A.FIFO
B.Ratio Analysis
C. Break Even Analysis
D.Economic order Quantity
Break Even
Analysis
START
TIME’S
TIMER
UP! CVP refers to:
A.Cost Volume Profit
B.Cost Variance Production
C. Creative Variance Price
D.Cost Value Proportion
Cost Volume
Profit
START
TIME’S
TIMER
UP! Calculate Contribution from
the following:
Sales: Rs.5,00,000 variable
Expenses: Rs.40,000 fixed
expenses: Rs. 30,000
A.4,50,000
B.4,30,000
C. 4,00,000
D.4,60,000
4,60,000
START
TIME’S
TIMER
UP! Calculate Profit from the
following:
Sales: Rs. 4,50,000 variable
Expenses : Rs. 50,000
Fixed expenses: Rs. 20,000
A.3,80,000
B.3,50,000
C. 4,50,000
D.4,00,000
3,80,000
START
TIME’S
TIMER
UP! Calculate PV ratio from the
following:
Variable cost: Rs.60,
Contribution : Rs.40
A.50%
B.60%
C. 40%
D.30%
40%
START
TIME’S
TIMER
UP! Calculate PV Ratio from the
following:
Sales: Rs.20, Variable Cost:
Rs.15
A.25%
B.30%
C. 40%
D.50%
25%
START
TIME’S
TIMER
UP! Calculate margin of safety
from the following:
Break even point- 40%, actual
sales: Rs.40,000
A.20,000
B.22,000
C. 24,000
D.19,000
24,000
START
TIME’S
TIMER
UP! Calculate margin of safety
from the following:
Actual Sales- 40,000 units
Break-even point- 25,000
units
A.10,000 units
B.12,000 units
C. 15,000 units
D.20,000 units
15,000 units
START
TIME’S
TIMER
UP! Compute Break-even in Rs.:
Selling Price= Rs.20 pu,
Variable Manufacturing cost=
Rs.11 pu, Variable Selling
cost= Rs.3 pu, Fixed Factory
cost= Rs: 5,40,000 , Fixed
Selling cost- Rs.2,52,000
A.26,40,000
B.25,78,000
C. 32,89,000
D.23,65,000
26,40,000
START
TIME’S
TIMER
UP! Calculate PV ratio from the following:
Sales Profit
Year 2011 1,20,000
8,000
Year 2012 1,40,000
13,000
• 30%
• 35%
• 20%
• 25%
25%
START
TIME’S
TIMER
UP! While Calculating the BEP in
units, total fixed cost is
divided by ___________:
A.Total contribution
B.Contribution per unit
C. Sales
D.Variable cost per unit
Contribution per
unit
START
TIME’S
TIMER
UP! While calculating the PV ratio
Contribution is divided by
____________:
A.Sales
B.Profit
C. Fixed cost
D.Variable cost
Sales
START
TIME’S
TIMER
UP! The point where Total Cost is
Equal to Total revenue is
known as :
A.Contribution
B.Break Even point
C. Profit
D.Loss
Break Even point
START
TIME’S
TIMER
UP! Contribution is equal to:
A.Sales – Variable cost
B.Fixed cost – Profit
C. Fixed cost + sales
D.Break even point- fixed cost
Sales – Variable
cost
START
TIME’S
TIMER
UP! Margin of safety can be
calculated as:
A.Actual Sales + Break Even
Point
B.Actual Sales- Break Even
Point
C. Break Even Point- Actual
Sales
D.Contribution – Profit
 Actual Sales-
Break Even Point
START
TIME’S
TIMER
UP! Which of the following is not
CVP relationship?
A. profit = total revenue – total
costs
B. contribution = total revenue
– variable costs
C. contribution = total costs –
variable costs
D. total costs = variable costs
+ fixed costs
contribution =
total costs –
variable costs
START
TIME’S
TIMER
UP! If Sales are 20,000 Rs and P/V
ratio is 40%, Variable cost will
be_______
a)12000
b) 8000
c)20000
d) 60
12000
START
TIME’S
TIMER
UP! The contribution per unit will
be ________ , when break even is
20,000 units and Fixed cost is
5,00,000 Rs
a)30
b) 10
c)25
d) 50
25
START
TIME’S
TIMER
UP! Suppose that a business has
Sales Rs. 10,000 and Variable
Cost Rs. 2,000; then decide
what will be its Profit Volume
Ratio (P/V Ratio)?
a)10 per cent
b) 20 per cent
c)30 per cent
d) 80 per cent
80 %
START
TIME’S
TIMER
UP! Suppose that a business has
Sales of Rs. 10,000 and
contribution is Rs. 4,000; then
decide what will be its Profit
Volume Ratio (P/V Ratio)?
a)80 per cent
b) 60 per cent
c)40 per cent
d) 70 per cent
40%
START
TIME’S
TIMER
UP! Assume you are given total
Fixed Cost Rs. 10,000; Selling
Price per unit Rs. 12 per unit
and Variable Cost per unit as
Rs. 9. Calculate Contribution
per unit?
a)Rs. 3
b) Rs. 9
c)Rs.12
d) Rs. 21
Rs. 3
START
TIME’S
TIMER
UP! Assume you are given total
Fixed Cost Rs. 12,500; Selling
Price per unit Rs. 15 per unit
and Variable Cost per unit as
Rs. 10. Calculate Contribution
per unit?
a)Rs. 500
b) Rs. 2500
c)Rs.1250
d) Rs. 5
5
START
TIME’S
TIMER
UP! What will be the Break-even
point in rupees in case Fixed
cost is Rs. 20,000 and Profit
Volume Ratio 40 per cent?
a) Rs. 50,000
b) Rs. 60,000
c) Rs. 70,000
d) Rs. 90,000
50,000
START
TIME’S
TIMER
UP! What will be the Break-even
point in rupees in case Fixed
cost is Rs. 30,000 and Profit
Volume Ratio 30 per cent?
a) Rs. 1,00,000
b) Rs. 2,00,000
c) Rs. 3,00,000
d) Rs. 4,00,000
1,00,000
START
TIME’S
TIMER
UP! What will be the Break-even
point in rupees in case Fixed
cost is Rs. 60,000, Sales are
20,000 and Variable cost is
14,000?
a) Rs. 1,00,000
b) Rs. 2,00,000
c) Rs. 3,00,000
d) Rs. 4,00,000
2,00,000
START
TIME’S
TIMER
UP! A Company has Actual Sales
Rs. 1,20,000 and Break-even
Point Rs. 50,000. Calculate
Margin of Safety?
a) Rs. 30,000
b) Rs.50,000
c) Rs. 70,000
d) Rs. 1,20,000
70,000
START
TIME’S
TIMER
UP! A Company has Profit Rs.
1,00,000 and P/V ratio 25
percent. Calculate Margin of
Safety?
a) Rs. 4,00,000
b) Rs. 5,00,000
c) Rs. 1,50,000
d) Rs. 25,00,000
4,00,000
START
TIME’S
TIMER
UP! Determine what will be the
sale for desired profit
assuming that the fixed cost is
Rs. 12,000, P/V Ratio is 20%
and the desired profit of Rs.
8,000?
a) Rs. 20,000
b) Rs. 40,000
c) Rs. 50,000
d) Rs. 1,00,000
1,00,000
START
TIME’S
TIMER
UP! Determine what will be the
profit for desired sales of Rs
50,000 assuming the fixed
cost is Rs. 10,000, P/V Ratio is
30%?
a) Rs. 2,000
b) 3,000
c) 4,000
d) 5,000
5000
 UNIT – 2
Marginal Costing
and CVP Analysis
START
TIME’S
TIMER
UP! _______ is the type of costing
where the costs are
predetermined.
A.Contract costing
B.Standard Costing
C. Marginal Costing
D.Job costing
Standard Costing
START
TIME’S
TIMER
UP! Standard Cost is a __________
cost.
A.Explicit
B.Implicit
C. Predetermined
D.Future
Predetermined
START
TIME’S
TIMER
UP! To calculate idle time variance
we multiply standard rate by:
A.Number of working hours
B.Number of hours the worker
was idle
C. Number of machine hours
worked
D.Number of units produced
by the worker
Number of hours
the worker was
idle
START
TIME’S
TIMER
UP! The variance is said to be
favourable when:
A.Actual cost is less than
standard cost
B.Actual cost is more than the
standard cost
C. When standard cost is equal
to actual cost
D.None of the above
Actual cost is less
than standard
cost
START
TIME’S
TIMER
UP! An unfavourable material
price variance occurs because
of:
A.Price increase in raw
materials
B.Price decreases in raw
materials
C. Price remains unchanged
D.None of the above
Price increase in
raw materials
START
TIME’S
TIMER
UP! Labour rate variance is
computed by multiplying the:
A. Std labour rate with the d/b
std and actual labour hours
B. Actual labour hours with
d/b std and actual labour
hours
C. Actual labour hours with
d/b std and actual rate
D. None of these
 Actual labour
hours with d/b
std and actual
rate
START
TIME’S
TIMER
UP! Given that the cost standards
for material consumption are
40Kg at Rs.10 per Kg, compute
the Material Price variance
when actuals are 48kg at
Rs.13 per Kg.
A.100(A)
B.100 (F)
C. 144(A)
D.96(F)
144(A)
START
TIME’S
TIMER
UP! Calculate material price variance from
the following:
Standard Quantity of material per
unit: 5Kg
Standard price per Kg. Rs.5
Actual number of units produced: 400
Actual Quantity of material used:
2,200 Kg.
Price of materials: Rs.4.80 per kg
400(A)
440(F)
450(A)
350(F)
440 (F)
START
TIME’S
TIMER
UP! Standard cost is a
A.Predetermined cost
B.Variable cost
C. Fixed cost
D.Profit
Predetermined
cost
START
TIME’S
TIMER
UP! idle time variance = idle time x
______
A.Standard rate
B.Actual rate
C. Predetermined rate
D.Loss
Standard rate
START
TIME’S
TIMER
UP! Standard costing is more
widely applied in
A.Process industries
B.Engineering industries
C. Both a and b
D.None of the above
Both a and b
START
TIME’S
TIMER
UP! The technique of standard
costing may not be applicable
in the case of
A.Large concerns
B.Small concerns
C. Transport
D.Education
Small concerns
START
TIME’S
TIMER
UP! Labour cost variance is the
difference between standard
cost of labour and
A.Variable cost
B.Fixed cost
C. Actual cost of labour
D.Marginal cost of labour
Actual cost of
labour
START
TIME’S
TIMER
UP! Standard cost of labour –
actual cost of labour
A.Total cost variance
B.Total labour variance
C. Total material variance
D.Idle time variance
Total labour
variance
START
TIME’S
TIMER
UP! Material usage variance =
material mix variance + ______
A.Cost variance
B.Labour variance
C. MYV
D.Fixed cost
MYV
START
TIME’S
TIMER
UP! calculate MPV from the following
Standard = 40 units @ 50 per unit for
(Raw material A)
60 units @ 40 per unit for (Raw
material B)
Actual = 50 units @ 50 per unit for
(Raw material A)
60 units @ 45 per units for (Raw
material A)
• 300 (A)
• 500 (A)
• 700 (A)
• 900 (A)
300 (A)
START
TIME’S
TIMER
UP! calculate MUV from the following
Standard = 40 units @ 50 per unit for
(Raw material A)
60 units @ 40 per unit for (Raw
material B)
Actual = 50 units @ 50 per unit for
(Raw material A)
60 units @ 45 per units for (Raw
material A)
• 500 (A)
• 300 (A)
• 600 (A)
• 700 (A)
500 (A)
START
TIME’S
TIMER
UP! calculate MMV from the following
Standard = 40 units @ 50 per unit for
(Raw material A)
60 units @ 40 per unit for (Raw
material B)
Actual = 50 units @ 50 per unit for
(Raw material A)
60 units @ 45 per units for (Raw
material A)
• 600 (A)
• 400 (A)
• 750 (A)
• 950 (A)
600 (A)
START
TIME’S
TIMER
UP! Standard cost of material
consumption is 40 kg @ 10
per kilogram, compute the
material price variance when
actuals are 48 kg @ 12 per
kilogram.
A.96 (A)
B.45(A)
C. 20 (F)
D.100 (A)
96 (A)
START
TIME’S
TIMER
UP! Standard cost of material
consumption is 40 kg @ 10
per kilogram, compute the
material usage variance when
actuals are 48 kg @ 12 per
kilogram.
A.80 (A)
B.87(A)
C. 25 (F)
D.180 (A)
80 (A)
START
TIME’S
TIMER
UP! Standard rate of wages per hour
Rs.10
Standard hours 300
Actual rate of wages per hour
Rs.12
Actual hours 200
Compute Labour cost variance
• 600 (F)
• 600 (A)
• 700 (F)
• 650 (A)
600 (F)
START
TIME’S
TIMER
UP! Standard rate of wages per hour
Rs.10
Standard hours 300
Actual rate of wages per hour
Rs.12
Actual hours 200
Compute Labour rate variance
• 600 (F)
• 400 (A)
• 700 (F)
• 650 (A)
400 (A)
START
TIME’S
TIMER
UP! Q1) Cost accounting is a
specialized branch of
accounting which deals with
__________
a) classification, recording,
allocation and control of costs
b) classification, processing,
allocation and directing
c) classification, recording,
planning and control of costs
d) classification, recording,
allocation and directing
 classification,
recording,
planning and
control of costs
START
TIME’S
TIMER
UP! Q2) The nature of financial
accounting is:
a)  historical
b)  forward-looking
c)  analytical
d)  social
a) historical
START
TIME’S
TIMER
UP! Q3) The main object of cost
accounting is:
a)  to record day-to-day
transactions of the business
b)  to reveal managerial efficiency
c)  to ascertain true cost of
products and services
d)  to determine tender price
a)  to record day-
to-day
transactions of
the business
START
TIME’S
TIMER
UP! Q4) Cost accounting emerged
mainly on account of:
a)  Statutory requirements
b)  Competition in the market
c)  Labour unrest
d)  Limitations of financial
accounting
d)  Limitations of
financial
accounting
START
TIME’S
TIMER
UP! Q5) Advantages of cost
accounting system accrue:
a)  only to workers
b)  only to government
c)  only to consumers
d)  to management, workers,
consumers and government
d) to management,
workers,
consumers and
government
START
TIME’S
TIMER
UP! Q6) Cost Accounting is applied
to:
a) Public undertakings only
b) Large business enterprises
only
c) Manufacturing and services
concerns
d) Small business enterprises
only
c) Manufacturing
and services
concerns
START
TIME’S
TIMER
UP! Q7) A colliery company
employees:
a) Contract Costing
b) Batch Costing
c) Operating Costing
d) Single Costing
d) Single Costing
START
TIME’S
TIMER
UP! Q8) Identify the reports prepared
under cost accounting:
a) Loss of material report
b) Idle time report
c) Variance report
d) All of the above
d) All of the
above
START
TIME’S
TIMER
UP! Q9) Which of the given branch of
accounting is for outsiders?
a) Cost accounting
b) Financial accounting
c) Either a) or b)
d) Neither a) nor b)
b) Financial
accounting
START
TIME’S
TIMER
UP! Q10) _____ accounting is relatively
recent development.
a) Cost accounting
b) Financial accounting
c) Either a) or b)
d) Neither a) nor b)
 a) Cost
accounting
START
TIME’S
TIMER
UP! _________ is a location, person, or
item of equipment for which cost
may be ascertained and used for
the purpose of control.
a) Cost centre
b) Cost unit
c) Expense centre
d) None of the above
a)Cost centre
START
TIME’S
TIMER
UP! Melting shop, machine
department and finishing shop
are perfect examples of____
a) Production cost centre
b) Service cost centre
c) Sales cost centre
d) Expense cost centre
a)Expense cost
centre
START
TIME’S
TIMER
UP! A cinema seat is _____
a) Unit of production
b) Unit of sales
c) Unit of service
d) Unit of cost
a)Unit of sales
START
TIME’S
TIMER
UP! _____ are incurred for and
conveniently identified with a
particular cost unit, process or
department.
a) Direct cost
b) Indirect cost
c) Fixed cost
d) Variable cost
a)Direct cost
START
TIME’S
TIMER
UP! _____ cannot be conveniently
identified with a particular cost
unit, process or department.
a) Direct cost
b) Indirect cost
c) Fixed cost
d) Variable cost
a)Indirect cost
START
TIME’S
TIMER
UP! Identify which of the following is
a perfect example of direct cost?
a) Depreciation on machinery
b) Power
c) Rent
d) Wages to a tailor in a ready
made garments company
 a)Wages to a
tailor in a ready
made garments
company
START
TIME’S
TIMER
UP! Identify which of the following is
a perfect example of indirect cost?
a) Depreciation on machinery for
stitching a piece of trouser
b) Raw material cost
c) Wages of machine operator
d) Cost of steel
a)Depreciation on
machinery for
stitching a piece
of trouser
START
TIME’S
TIMER
UP! Identify the reason due to which
costs are not traced or identified
directly with a cost unit:
a) It is impossible to do so.
b) It is not convenient or feasible.
c) Management may choose not
to do so.
d) All of the above.
a)All of the above.
START
TIME’S
TIMER
UP! Costs are classified as fixed or
variable on basis of_______
a) specific activity
b) given time period
c) common activity
d) both a and b
a)both a and b
START
TIME’S
TIMER
UP! Cost which is changed in
proportion to level total volume is
a) fixed cost
b) variable cost
c) total cost
d) infeasible cost
a)variable cost
START
TIME’S
TIMER
UP! A cost that changes in total dollar
amount with the change in the
level of activity is known as:
a) fixed cost
b) mixed cost
c) conversion cost
d) variable cost
a)variable cost
START
TIME’S
TIMER
UP! Cost which remains unchanged, in
proportion to level total volume
of production is classified as
a) total cost
b) infeasible cost
c) fixed cost
d) variable cost
a)fixed cost
START
TIME’S
TIMER
UP! Identify which of the given
features are not related to fixed
cost?
a) Total fixed cost does not
change within a relevant range
of output.
b) Per unit fixed cost decreases
when output increases.
c) Per unit fixed cost increases
when output increases.
d) None of the above.
c) Per unit fixed
cost increases
when output
increases.
START
TIME’S
TIMER
UP! Identify which of the given features
are not related to variable cost?
a) Total amount of variable cost
increases in direct proportion to
the volume of output.
b) Variable cost per unit also
change.
c) Total amount of variable cost
decreases in direct proportion to
the volume of output.
d) None of the above.
a)Variable cost
per unit also
change.
START
TIME’S
TIMER
UP! ________ cost has often a fixed
element below which it will not
fall at any level of output.
a) Semi-variable
b) Semi-fixed
c) Fixed cost
d) Variable cost
a) semi-variable
START
TIME’S
TIMER
UP! Rent, Managerial salary,
Municipal taxes and Building
Insurance are perfect examples of
which cost?
a) Variable
b) Fixed
c) Semi-variable
d) Semi-fixed
Fixed
START
TIME’S
TIMER
UP! Direct material, direct wages,
power and Royalties are perfect
examples of which cost?
a) Variable
b) Fixed
c) Semi-variable
d) Semi-fixed
a) Variable
START
TIME’S
TIMER
UP! Prime cost = ?
a) Direct material + direct labor
b) Direct material + direct labor +
direct expenses
c) Direct materials cost + indirect
labor
d) Direct materials cost + Direct
labor cost + Manufacturing
overhead cost
B)
START
TIME’S
TIMER
UP! Conversion cost = ?
a) Direct labor + Factory
overhead cost
b) Direct materials cost + Direct
Labor cost
c) Direct materials cost + Admin.
cost
d) Direct materials cost +
Marketing cost
a)
START
TIME’S
TIMER
UP! Overheads = ?
a) Direct Material + Indirect
Labor + Direct Expenses
b) Indirect Material + Indirect
Labor + Indirect Expenses
c) Indirect Material X Indirect
Labor - Indirect Expenses
d) Direct Material X Indirect
Labor X Indirect Expenses
B)
START
TIME’S
TIMER
UP! Which of the given are elements
of cost.
a) Material
b) Labour
c) Expenses
d) All of the above
d) All of the
above
START
TIME’S
TIMER
UP! ______ is a cost that has already
been incurred and cannot be
changed by any decision.
a) Differential Cost
b) Sunk cost
c) Replacement cost
d) Marginal cost
a)Sunk cost
START
TIME’S
TIMER
UP! ________ is the increase or decrease
in total cost that results from
alternative course of action.
a) Differential cost
b) Explicit cost
c) Sunk cost
d) Fixed cost
a)Differential cost
START
TIME’S
TIMER
UP! ____ is a cost that helps in decision
making like make or buy, pricing
the product and sales mix
selection etc.
a) Sunk cost
b) Explicit cost
c) Marginal cost
d) Replacement cost
a)Marginal cost
START
TIME’S
TIMER
UP! Which of the following is not an
example of out – of – pocket cost?
a) Wages
b) Material cost
c) Insurance
d) Depreciation of machinery
a)Depreciation of
machinery
START
TIME’S
TIMER
UP! Match the following:
A) Printing Press i) Square foot
B) Carpets ii) Tonne
C) Shoes iii) Copies
D) Cement iv) Litres
E) Chemicals v) Pair
a) A,i; B, ii; C, iii; D, iv; E, v
b) A,ii, B,iii; C, iv; D, i and E,v
c) A,iii; B,I; C,v; D,ii; E,iv
d) A,iii; B,l, C,ii; D,v and e,iv
a)A,iii; B,I; C,v;
D,ii; E,iv
START
TIME’S
TIMER
UP! Assume that direct material
consumed is Rs. 93,000; direct
wages Rs. 22,000 and direct
expenses Rs. 5,000; then what
will be the prime cost?
a) Rs. 27,000
b) Rs. 93,000
c) Rs. 1,05,000
d) Rs. 1,20,000
d)
START
TIME’S
TIMER
UP! What will be the amount of
Factory cost, if opening stock of
raw material is Rs. 3,500
Purchases Rs. 10,000, Carriage
expenses Rs.2,000, Closing stock
of material Rs. 4,000, direct wages
Rs. 25,000 and direct expenses
Rs. 3,200
a) Rs. 39,700
b) Rs. 41,700
c) Rs. 47,700
d) Rs. 50,000
a)
START
TIME’S
TIMER
UP! What will be the amount of cost of
production, if office salary is Rs.
20,000, office lighting Rs. 7,000,
establishment charges Rs. 10,000,
legal charges Rs. 5,600, audit fee
Rs. 3,000?
a) Rs. 27,000
b) Rs. 37,000
c) Rs. 45,600
d) Rs. 46,600
C)
START
TIME’S
TIMER
UP! What will be the cost of sales, if
travelling expenses Rs. 10,000,
showroom expenses Rs. 5,000,
packing charges Rs. 2,000,
depreciation of delivery van Rs.
5,000 and cost of catalogues Rs.
1,200?
a) Rs. 15,000
b) Rs. 17,000
c) Rs. 22,000
d) Rs. 23,200
d)
START
TIME’S
TIMER
UP! How is scrap treated in a cost
sheet?
a) Deducted from the prime cost
b) Deducted from cost of sales
c) Deducted from factory
overheads
d) Deducted from cost of
production
c)
START
TIME’S
TIMER
UP! .......... represents that quantity of
material which is normally
ordered when a particular
material reaches the ordering
level.
a) ABC
b) EOQ
c) VED
d) Re-order period
B)
START
TIME’S
TIMER
UP! In times of rising prices, ____
method produces higher profits
and results in lower tax as they
are derived from higher cost of
goods sold.
a) FIFO
b) LIFO
c) Either a) or b)
d) None of the above
a) FIFO
START
TIME’S
TIMER
UP! The consumption of a material is
2,500 - 4,000 units per week; It
takes 5 – 7 weeks time to get the
delivery of material. Decide what
will be the re-order level?
a) 17,500 units
b) 28,000 units
c) 24,500 units
d) 39,000 units
b) 28,000 units
START
TIME’S
TIMER
UP! Assume that the annual
consumption of a material is of
8,000 units, cost of placing one
order is Rs. 50, cost per unit is Rs.
40 and storage cost is 8% of
average inventory, then what will
be the economic order quantity?
a) 400 kg
b) 450 kg
c) 500 kg
d) 550 kg
c)