Introduction to Cost Accounting MCQ | Cost Accounting (Free Resource)

Introduction to Cost Accounting MCQ

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1. The cost Accounting system is developed for _______________ .
a) Financial institution
b) Government
c) Management
d) Shareholders

2. Cost Accounting is an _____________ reporting system.
a) External
b) Government
c) Financial
d) Internal

3. A location for which cost is incurred is a ______________ .
a) Revenue centre
b) Cost centre
c) Profit centre
d) Produaction centre

4. Product cost is _______________ cost.
a) Fixed
b) Prime
c) Indirect
d) Variable

5. Cost which can be identified with the output is called as ____________ .
a) Product
b) Fixed
c) Direct
d) Indirect

6. Interest on capital is ____________ cost.
a) Sunk
b) Imputed
c) Direct
d) Indirect

7. Overheads incurred in connection with factory is called _____________ overheads.
a) Office
b) Factory
c) Selling
d) None of the above

8. The cost which remains constant irrespective of output is called _____________ cost.
a) Variable
b) Product
c) Sunk
d) Fixed

9. Direct labour and factory overheads is called ___________ cost.
a) Conversion
b) Direct
c) Packing
d) Indirect

10. Cost of designing is ___________ expenses.
a) Office
b) Production
c) Indirect
d) Direct

1) Management 2) Internal 3) Cost centre 4) Variable 5) Direct 6) Imputed 7) Factory 8) Fixed 9) Conversion 10) Direct

11. Variable cost per unit remains __________ .
a) Flexible
b) Constant
c) Both a & B
d) None of the above

12. Fixed cost per unit ___________ .
a) Constant
b) Fluctuates
c) Both a & B
d) None of the above

13. Cost relating to capacity is called __________ cost.
a) Fixed Cost
b) Capacity
c) Cost Plant Cost
d) None of the above

14. Cost which is unaffected by change in output is called as _________ .
a) Fixed Cost
b) Variable Cost
c) Period Cost
d) None of the above

15. Cost of _________ is broader in scope and comprises costing, cost accounting cost control and cost audit.
a) Production
b) Accountancy
c) Sale
d) None of the above

16. ___________ is that portion of cost which is consumed.
a) Income
b) Profit
c) Expense
d) None of the above

17. _________ is that part of cost which is consumed but did not result in Revenue.
a) Profit
b) Investment
c) Loss
d) None of the above

18. Asset is an __________ .
a) Period Cost
b) Product Cost
c) Expired Cost
d) None of the above

19. Cost of _________ is verification of cost accounts.
a) Audit
b) Accountancy
c) Production
d) None of the above

20. _________ have no access to cost records.
a) Insider
b) Outsider
c) Both a & b
d) None of the above

11) Constant 12) Fluctuates 13) Capacity 14) Fixed Cost 15) Accountancy 16) Expense 16\7) Loss 18) Expired Cost 19) Audit 20) Outsider

21. A tonne of coal is a cost ___________ .
a) Price
b) Unit
c) Overheads
d) None of the above

22. In case of paper the cost unit is _________ .
a) Per Unit
b) Per kg/ rate
c) Per job
d) None of the above

23. In case of power the cost unit is _________ .
a) per job
b) PKW
c) Per Unit
d) Per cubic metre

24. In case of gas the cost unit is __________ .
a) Per Unit
b) Per Unit
c) Per cubic metre
d) per job

25. In case of interior decoration the cost unit is ___________ .
a) Per cubic metre
b) Per kg/per rate
c) per job
d) None of the above

26. The objective of __________ is to maximise ROI.
a) an organisation
b) Profit Centre
c) Investment Centre
d) None of the above

27. Anything for which a separate measurement of cost is required is _____________.
a) Cost period
b) Cost Object
c) Cost of Sale
d) None of the above

28. The example of cost object as product is ___________ .
a) T. V., Car
b) Milk,Timber
c) Tin packing, Boxes
d) None of the above

29. placement of an order is a cost object when it is _____________ .
a) Activity
b) Data
c) Report
d) None of the above

30. Timber in furniture is a __________ raw material.
a) Indirect
b) Basic
c) Precess
d) None of the above

21) Unit 22) Per kg/per rate 23) PKW 24) Per cubic metre 25) per job 26) Investment Centre 27) Cost Object 28) T. V., Car 29) Activity 30) Basic

31. Milk and cream is a ___________ raw material in ice cream.
a) Primary Packing
b) Indirect
c) Basic
d) None of the above

32. Tin packing of ghee is a __________ packing material.
a) Primary
b) Direct
c) Indirect
d) None of the above

33. Carpenter in a furniture unit is a _________ labour.
a) Direct
b) Indirect
c) Factory Overheads
d) None of the above

34. Halwai in the confectionary unit is a ________ labour.
a) Actual
b) Production
c) Indirect
d) Direct

35. Labour in payroll department is an _________ labour.
a) Direct
b) Indirect
c) Actual
d) Production

36. Exciseduty based on output is _________ expenses.
a) Direct
b) Indirect
c) Production
d) Distribution

37. Lubricating oil is a ________ overhead.
a) Prime cost
b) Selling
c) Office
d) Factory

38. Cost of cloth in a shirt is ________ material.
a) Indirect
b) Fixed
c) Direct
d) None of the above

39. Normal cost is treated as a _______ .
a) Cost of Production
b) Cost of Material
c) Cost of Purchase
d) None of the above

40. __________ cost indicates what the cost should have been.
a) Historical
b) Estimated
c) Variable
d) Standard

31) Basic 32) Primary 33) Direct 34) Direct 35) Indirect 36) Direct 37) Factory 38) Direct 39) Cost of Production 40) Standard

41. Relevant cost is __________ for decision making.
a) Standard
b) Relevant
c) Product
d) Urgent

42. The cost incurred by past decision is ________ cost.
a) Estimated
b) Standard
c) Historical
d) Marginal

43. Fixed cost which continues to be incurred even when the plant is temporarily shut down is called as _______ cost.
a) Direct
b) Sunk
c) Shutdown
d) Imputed

44. The cost which involves cash outlay is _________ cost.
a) Out of Pocket C
b) ost Book cost
c) Future cost
d) Postponable cost

45. The cost of next best alternative is ___________.
a) opportunity cost
b) Cash cost
c) Imputed cost
d) None of the above

46. The cost which does not involve any cash outlay is __________ cost.
a) Non Cash
b) Cash cost
c) opportunity cost
d) Imputed cost

47. Increase or decrease in total cost due to change in activity level is __________ .
a) Estimated cost
b) Fixed cost
c) Capacity cost
d) Differential Cost

48. Current purchase price of an identical asset is called as ___________ .
a) Production cost
b) Urgent cost
c) Replacement cost
d) Selling cost

49. The cost which cannot be avoided is called as _________ cost.
a) Committed
b) Discretion
c) Shutdown
d) Imputed

50. The cost which can be avoided by managerical decisions is called as ________ cost.
a) Discretion
b) Committed
c) Marginal
d) Shutdown

41) Relevant 42) Historical 43) Shutdown 44) Out of Pocket Cost 45) opportunity cost 46) Non Cash 47) Differential Cost 48) Replacement cost 49) Committed 50) Discretion