MBA/MBA Cost and Managerial Accounting Mcq Set 5 Sample Test,Sample questions

Question:
____ is a budget which is updated continuously by adding a further period (a month/quarter) and deducting a corresponding earlier period.

1.Rolling budget

2.continuous budget

3.annual budget

4.both a & b

Posted Date:-2021-11-16 08:58:46


Question:
______ costing is applicable to printers.

1.Process

2.batch

3.multiple

4.job

Posted Date:-2021-11-16 09:05:00


Question:
______ is a summary of all function budgets in a Capsule form.

1.Master Budget

2.Sales budget

3.Performance budget

4.Cash Budget

Posted Date:-2021-11-16 08:59:26


Question:
______ process loss should be transferred to costing profit & loss account.

1.Abnormal

2.normal

3.both a& b

4.none of these

Posted Date:-2021-11-16 08:56:15


Question:
______ represents that quantity of material which is normally ordered when a particular material reaches reordering level.

1.maximum level

2.re-order level

3.minimum level

4.Re-order quantity

Posted Date:-2021-11-16 09:51:51


Question:
_______ is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory

1.ABC Analysis

2.JIT Inventory System

3.VED Analysis

4.Perpetual Inventory System

Posted Date:-2021-11-16 09:52:20


Question:
__________ budget may be classified into material cost budget, labour cost budget and overhead budget.

1.Cost of Production

2.purchase

3.sales

4.Cash

Posted Date:-2021-11-17 01:24:20


Question:
__________ does not form part of production.

1.Abnormal waste

2.normal waste

3.both a & b

4.None of these

Posted Date:-2021-11-16 09:52:43


Question:
__________ is the excess of overheads absorbed over the actual amount of overheads incurred.

1.Over absorption of overheads

2.under absorption of overheads

3.overheads absorption

4.None of these.

Posted Date:-2021-11-17 01:04:00


Question:
___________ is a post mortem of past costs.

1.Financial accounting

2.cost accounting

3.both a & b

4.none of these

Posted Date:-2021-11-17 02:59:19


Question:
_____. is most suitable when quality of work is of prime importance.

1.Piece rate system

2.time wage system

3.both a & b

4.None of these

Posted Date:-2021-11-16 09:53:35


Question:
A favourable variance will arise when capital revenues are ______________ than expected.

1.More

2.Less

3.Lesser

4.None of the above

Posted Date:-2021-11-17 02:57:38


Question:
Abnormal cost is ______________

1.Uncontrollable

2.controllable

3.fixed

4.none of these

Posted Date:-2021-11-17 03:03:09


Question:
Activity Ratio=

1.Number of actual working days in a period x 100 Number of working days in the budget period

2.Actual hours worked x 100 Budgeted hours

3.Standard hours for actual production x 100 Actual hours worked

4.Standard hours for actual production x 100 Budgeted standard hours

Posted Date:-2021-11-17 01:25:27


Question:
An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is ______________ kg

1.400

2.300

3.500

4.600

Posted Date:-2021-11-17 01:23:25


Question:
Average unit cost for each process is calculated by dividing the ______________ by ______________

1.Total cost, number of units

2.total process cost, number of units in process

3.Total process cost, number of finished goods

4.total cost, number of units produced

Posted Date:-2021-11-17 01:21:26


Question:
Basis of apportionment of welfare department expenses is ____

1.Wages of each department

2.Number of employees

3.materials consumed

4.number of machineries

Posted Date:-2021-11-16 10:05:16


Question:
Basis of apportionment of welfare department expenses is _________

1.Wages of each department

2.Number of employees

3.materials consumed

4.number of machineries

Posted Date:-2021-11-17 01:01:06


Question:
Boiler house costing is an example of ______________ costing

1.Operation

2.process

3.service

4.none of these

Posted Date:-2021-11-17 01:20:38


Question:
Cost accounting disclose ______

1.The Financial position

2.profit/loss of a product, job or service

3.effect and impact of cost on business

4.none of these

Posted Date:-2021-11-16 09:03:54


Question:
Cost accounting provides data for managerial ______________

1.Decision making

2.recruitment

3.retrenchment

4.none of the above.

Posted Date:-2021-11-17 03:01:31


Question:
Economic Batch Quantity is an important point to be determined in industries where ______________ costing is employed.

1.Job

2.batch

3.operation

4.output

Posted Date:-2021-11-17 01:07:14


Question:
For conducting _______ workers are studied at their jobs and all their movements and motions are noted.

1.Time study

2.Motion study

3.Merit rating

4.none of these

Posted Date:-2021-11-16 09:53:10


Question:
Idle time variance is ______

1.Idle time x actual labour

2.Idle time x standard rate

3.Idle time x budgeted labour rate

4.Idle time x historical cost

Posted Date:-2021-11-16 09:01:36


Question:
If the amount of work certified is less than ______________ of the contract price, then no profit should be taken to Profit & Loss Account.

1.20%

2.25%

3.33 1/3%

4.40%

Posted Date:-2021-11-17 01:18:16


Question:
In process costing, the abnormal loss is treated as _______ cost and written off to profit & loss account.

1.Unit

2.period

3.future

4.process

Posted Date:-2021-11-16 08:56:46


Question:
Labour cost variance is the difference between standard cost of labour and ______________

1.Budgeted cost of labour

2.Estimated cost of labour

3.Actual cost of labour

4.None of these

Posted Date:-2021-11-17 02:55:58


Question:
Labour rate variance is computed by multiplying the

1.Standard labour rate with the difference between standard labour hours and actual labour hours

2.Actual labour hours with the difference between standard labour hours and actual labour hours

3.Actual labour rate with the difference between standard labour rate and actual labour hours.

4.None of the above

Posted Date:-2021-11-17 02:58:30


Question:
Maintenance charges are in the nature of ______________ expenses.

1.Fixed

2.Variable

3.semi-variable

4.none of these

Posted Date:-2021-11-17 01:19:38


Question:
Market price method is considered to be the best method when _______

1.Quotations have to be sent

2.prices fluctuate

3.materials are subject to natural wastage

4.none of these

Posted Date:-2021-11-16 09:50:03


Question:
Material mix variance = standard cost of standard mix - _____

1.Actual cost of actual mix

2.Actual cost of standard mix

3.Standard cost of actual mix

4.Standard cost of budgeted mix

Posted Date:-2021-11-16 09:02:00


Question:
Operating costing is also known as ______________ costing.

1.Service

2.batch

3.multiple

4.job

Posted Date:-2021-11-17 03:00:08


Question:
Overhead expenses can be classified according to:

1.Functions

2.Elements

3.Behavior

4.All of the above

Posted Date:-2021-11-17 01:26:20


Question:
Period costs charged to ______________

1.cost of production

2.Products

3.Period

4.none of these

Posted Date:-2021-11-17 03:04:07


Question:
Sales budget is a

1.Functional budget

2.Master budget

3.Expenditure budget

4.none of these

Posted Date:-2021-11-17 01:27:25


Question:
Standard costs is _______

1.Predetermined cost

2.budgeted cost

3.Actual cost

4.none of these

Posted Date:-2021-11-16 09:12:01


Question:
Telephone expense is ______________ expense.

1.Variable

2.semi-variable

3.fixed

4.none of these

Posted Date:-2021-11-17 01:05:05


Question:
The budget which commonly takes the form of budgeted profit and loss account and balance sheet is

1.cash budget

2.master budget

3.flexible budget

4.fixed budget

Posted Date:-2021-11-17 01:32:15


Question:
The deviation of the actual cost or profit or sales from the standard cost or profit or sale is known as ______________

1.Difference

2.Variance

3.Discrepancy

4.Inconsistency

Posted Date:-2021-11-17 02:55:18


Question:
The ordinary trading account is a locked storehouse of most valuable information to which cost system is the ______

1.Key

2.lock

3.house

4.none of these

Posted Date:-2021-11-16 09:05:22


Question:
The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:

1.Includes only fixed costs, while a variable budget includes only variable costs.

2.Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales.

3.Cannot be changed after the period begins, while a variable budget can be changed after the period begins.

4.Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)

Posted Date:-2021-11-16 09:00:34


Question:
The technique of standard costing may not be applicable in case of

1.Large concerns

2.Small concerns

3.All concerns

4.Both b & c

Posted Date:-2021-11-17 02:56:40


Question:
The total of all direct expenses is known as _______ cost.

1.Prime

2.Works

3.Production

4.both a & b

Posted Date:-2021-11-16 09:44:29


Question:
The total variable cost ______ in total proportion to output.

1.Increases

2.does not increase

3.decreases

4.None of these.

Posted Date:-2021-11-16 09:05:48


Question:
Three types of standards are _______

1.Current standard, basic standard and normal standard

2.Currency standard, basel standard and actual standard

3.Actual standard, estimated standard and expected standard

4.Expected standard, ideal standard and current standard

Posted Date:-2021-11-16 09:01:10


Question:
Under applied or over applied factory overhead should be

1.Carried forward to next year

2.shown as an extraordinary item

3.apportioned among cost of goods sold and applicable to inventory

4.written off

Posted Date:-2021-11-17 01:06:07


Question:
Variable cost increases with _______ in output.

1.Increase

2.decrease

3.increase or decrease

4.none of these.

Posted Date:-2021-11-16 09:06:16


Question:
Variable cost per unit ______________

1.Remains constant

2.varies

3.decreases

4.increases

Posted Date:-2021-11-17 03:02:23


Question:
Volume variance arises because of :

1.Increase in overhead rate per hour

2.Decrease in overhead rate per hour

3.Increase or decrease in actual output as compared to the budgeted output.

4.Difference in budgeted overheads and actual overheads.

Posted Date:-2021-11-16 09:02:52


Question:
When actual loss is ______________ than the estimated loss, the difference between the two is considered to be abnormal loss.

1.More

2.less

3.both a & b)

4.none of these

Posted Date:-2021-11-17 01:22:19


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