{"id":5092,"date":"2021-08-29T18:56:22","date_gmt":"2021-08-29T13:26:22","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=5092"},"modified":"2025-10-07T19:16:45","modified_gmt":"2025-10-07T13:46:45","slug":"introduction-to-cost-accounting-mcq","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/introduction-to-cost-accounting-mcq\/","title":{"rendered":"Introduction to Cost Accounting MCQ | Cost Accounting (Free Resource)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Introduction to Cost Accounting MCQ<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ-1024x576.png\" alt=\"Introduction to Cost Accounting MCQ\" class=\"wp-image-5216 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ-1024x576.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ-300x169.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ-768x432.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ-1536x864.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/08\/Introduction-to-Cost-Accounting-MCQ.png 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Introduction to Cost Accounting MCQ<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/cost-accounting-mcq\/\">MCQs on other topics of Cost Accounting <\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Cost Accounting MCQs pdf <\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. The cost Accounting system is developed for _______________ .<br><\/strong>a) Financial institution<br>b) Government<br>c) Management<br>d) Shareholders<\/p>\n\n\n\n<p><strong>2. Cost Accounting is an _____________ reporting system.<br><\/strong>a) External<br>b) Government<br>c) Financial<br>d) Internal<\/p>\n\n\n\n<p><strong>3. A location for which cost is incurred is a ______________ .<br><\/strong>a) Revenue centre<br>b) Cost centre<br>c) Profit centre<br>d) Produaction centre<\/p>\n\n\n\n<p><strong>4. Product cost is _______________ cost.<br><\/strong>a) Fixed<br>b) Prime<br>c) Indirect<br>d) Variable<\/p>\n\n\n\n<p><strong>5. Cost which can be identified with the output is called as ____________ .<br><\/strong>a) Product<br>b) Fixed<br>c) Direct<br>d) Indirect<\/p>\n\n\n\n<p><strong>6. Interest on capital is ____________ cost.<br><\/strong>a) Sunk<br>b) Imputed<br>c) Direct<br>d) Indirect<\/p>\n\n\n\n<p><strong>7. Overheads incurred in connection with factory is called _____________ overheads.<br><\/strong>a) Office <br>b) Factory <br>c) Selling <br>d) None of the above<\/p>\n\n\n\n<p><strong>8. The cost which remains constant irrespective of output is called _____________ cost.<br><\/strong>a) Variable <br>b) Product <br>c) Sunk <br>d) Fixed<\/p>\n\n\n\n<p><strong>9. Direct labour and factory overheads is called ___________ cost.<br><\/strong>a) Conversion <br>b) Direct <br>c) Packing <br>d) Indirect<\/p>\n\n\n\n<p><strong>10. Cost of designing is ___________ expenses.<br><\/strong>a) Office <br>b) Production <br>c) Indirect <br>d) Direct<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><span class=\"has-inline-color has-vivid-red-color\">1) Management  2) Internal   3) Cost centre  4) Variable  5) Direct  6) Imputed  7) Factory  8) Fixed  9) Conversion  10) Direct<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>11. <strong>Variable cost per unit remains __________ .<\/strong><br>a) Flexible <br>b) Constant <br>c) Both a &amp; B <br>d) None of the above<\/p>\n\n\n\n<p><strong>12. Fixed cost per unit ___________ .<\/strong><br>a) Constant <br>b) Fluctuates <br>c) Both a &amp; B <br>d) None of the above<\/p>\n\n\n\n<p><strong>13. Cost relating to capacity is called __________ cost.<\/strong><br>a) Fixed Cost <br>b) Capacity <br>c) Cost Plant Cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>14. Cost which is unaffected by change in output is called as _________ .<br><\/strong>a) Fixed Cost <br>b) Variable Cost <br>c) Period Cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>15. Cost of _________  is broader in scope and comprises costing, cost accounting cost control and cost audit.<br><\/strong>a) Production <br>b) Accountancy <br>c) Sale <br>d) None of the above<\/p>\n\n\n\n<p><strong>16. ___________ is that portion of cost which is consumed.<br><\/strong>a) Income <br>b) Profit <br>c) Expense <br>d) None of the above<\/p>\n\n\n\n<p><strong>17. _________ is that part of cost which is consumed but did not result in Revenue.<br><\/strong>a) Profit <br>b) Investment <br>c) Loss <br>d) None of the above<\/p>\n\n\n\n<p><strong>18. Asset is an <em>_<\/em>_________ .<br><\/strong>a) Period Cost <br>b) Product Cost <br>c) Expired Cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>19. Cost of _________ is verification of cost accounts.<br><\/strong>a) Audit <br>b) Accountancy <br>c) Production <br>d) None of the above<\/p>\n\n\n\n<p><strong>20. _________ have no access to cost records.<\/strong><br>a) Insider <br>b) Outsider <br>c) Both a &amp; b <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><span class=\"has-inline-color has-vivid-red-color\">11) Constant  12) Fluctuates  13) Capacity  14) Fixed Cost  15) Accountancy  16) Expense  16\\7) Loss  <br>18) Expired Cost  19) Audit  20) Outsider<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. A tonne of coal is a cost ___________ .<br><\/strong>a) Price <br>b) Unit <br>c) Overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>22. In case of paper the cost unit is _________ .<br><\/strong>a)  Per Unit <br>b) Per kg\/ rate <br>c) Per job <br>d) None of the above<\/p>\n\n\n\n<p><strong>23. In case of power the cost unit is _________ .<br><\/strong>a) per job <br>b) PKW <br>c) Per Unit <br>d) Per cubic metre<\/p>\n\n\n\n<p><strong>24. In case of gas the cost unit is __________ .<\/strong><br>a) Per Unit <br>b) Per Unit <br>c) Per cubic metre <br>d) per job<\/p>\n\n\n\n<p><strong>25. In case of interior decoration the cost unit is <em>_<\/em>__________ .<br><\/strong>a) Per cubic metre <br>b) Per kg\/per rate <br>c) per job <br>d) None of the above<\/p>\n\n\n\n<p><strong>26. The objective of <em>_<\/em>_________ is to maximise ROI.<br><\/strong>a) an organisation <br>b) Profit Centre <br>c) Investment Centre <br>d) None of the above<\/p>\n\n\n\n<p><strong>27. Anything for which a separate measurement of cost is required is _____________.<br><\/strong>a) Cost period <br>b) Cost Object <br>c) Cost of Sale <br>d) None of the above<\/p>\n\n\n\n<p><strong>28. The example of cost object as product is ___________ .<br><\/strong>a) T. V., Car <br>b) Milk,Timber <br>c) Tin packing, Boxes <br>d) None of the above<\/p>\n\n\n\n<p><strong>29. placement of an order is a cost object when it is _____________ .<br><\/strong>a) Activity <br>b) Data <br>c) Report <br>d) None of the above<\/p>\n\n\n\n<p><strong>30. Timber in furniture is a __________ raw material.<\/strong><br>a) Indirect <br>b) Basic <br>c) Precess <br>d) None of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><span class=\"has-inline-color has-vivid-red-color\">21) Unit  22) Per kg\/per rate  23) PKW  24) Per cubic metre  25) per job  26) Investment Centre  <br>27) Cost Object  28) T. V., Car  29) Activity  30) Basic<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. Milk and cream is a ___________ raw material in ice cream.<\/strong><br>a) Primary Packing <br>b) Indirect <br>c) Basic <br>d) None of the above<\/p>\n\n\n\n<p><strong>32. Tin packing of ghee is a __________ packing material.<\/strong><br>a) Primary <br>b) Direct <br>c) Indirect <br>d) None of the above<\/p>\n\n\n\n<p><strong>33. Carpenter in a furniture unit is a _________ labour.<br><\/strong>a) Direct <br>b) Indirect <br>c) Factory Overheads <br>d) None of the above<\/p>\n\n\n\n<p><strong>34. Halwai in the confectionary unit is a ________ labour.<br><\/strong>a) Actual <br>b) Production <br>c) Indirect <br>d) Direct<\/p>\n\n\n\n<p><strong>35. Labour in payroll department is an _________ labour.<br><\/strong>a) Direct <br>b) Indirect <br>c) Actual <br>d) Production<\/p>\n\n\n\n<p><strong>36. Exciseduty based on output is _________ expenses.<br><\/strong>a) Direct <br>b) Indirect <br>c) Production <br>d) Distribution<\/p>\n\n\n\n<p><strong>37. Lubricating oil is a ________ overhead.<br><\/strong>a) Prime cost <br>b) Selling <br>c) Office <br>d) Factory<\/p>\n\n\n\n<p><strong>38. Cost of cloth in a shirt is ________ material.<br><\/strong>a) Indirect <br>b) Fixed <br>c) Direct <br>d)  None of the above<\/p>\n\n\n\n<p><strong>39. Normal cost is treated as a _______ .<br><\/strong>a) Cost of Production <br>b)  Cost of Material <br>c) Cost of Purchase <br>d) None of the above<\/p>\n\n\n\n<p><strong>40. __________ cost indicates what the cost should have been.<br><\/strong>a) Historical <br>b) Estimated <br>c) Variable <br>d) Standard<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><span class=\"has-inline-color has-vivid-red-color\">31) Basic  32) Primary  33) Direct  34) Direct  35) Indirect  36) Direct  37) Factory  38) Direct <br>39) Cost of Production  40) Standard<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. Relevant cost is __________ for decision making.<br><\/strong>a) Standard <br>b) Relevant <br>c) Product <br>d) Urgent<\/p>\n\n\n\n<p><strong>42. The cost incurred by past decision is ________ cost.<br><\/strong>a) Estimated <br>b) Standard <br>c) Historical <br>d) Marginal<\/p>\n\n\n\n<p><strong>43. Fixed cost which continues to be incurred even when the plant is temporarily shut down is called as _______ cost.<\/strong><br>a) Direct <br>b) Sunk <br>c) Shutdown <br>d) Imputed<\/p>\n\n\n\n<p><strong>44. The cost which involves cash outlay is <em>_<\/em>________ cost.<br><\/strong>a) Out of Pocket C<br>b) ost Book cost <br>c) Future cost <br>d) Postponable cost<\/p>\n\n\n\n<p><strong>45. The cost of next best alternative is <em>_<\/em>__________.<br><\/strong>a) opportunity cost <br>b) Cash cost <br>c) Imputed cost <br>d) None of the above<\/p>\n\n\n\n<p><strong>46. The cost which does not involve any cash outlay is __________ cost.<\/strong><br>a) Non Cash <br>b) Cash cost <br>c) opportunity cost <br>d) Imputed cost<\/p>\n\n\n\n<p><strong>47. Increase or decrease in total cost due to change in activity level is <em>_<\/em>_________ .<\/strong><br>a) Estimated cost <br>b) Fixed cost <br>c) Capacity cost <br>d) Differential Cost<\/p>\n\n\n\n<p><strong>48. Current purchase price of an identical asset is called as <em>___________ <\/em>.<\/strong><br>a) Production cost <br>b) Urgent cost <br>c) Replacement cost <br>d) Selling cost<\/p>\n\n\n\n<p><strong>49. The cost which cannot be avoided is called as _________ cost.<\/strong><br>a) Committed <br>b) Discretion <br>c) Shutdown <br>d) Imputed<\/p>\n\n\n\n<p><strong>50. The cost which can be avoided by managerical decisions is called as ________ cost.<\/strong><br>a) Discretion <br>b) Committed <br>c) Marginal <br>d) Shutdown<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><span class=\"has-inline-color has-vivid-red-color\">41) Relevant  42) Historical  43) Shutdown  44) Out of Pocket Cost  45) opportunity cost  46) Non Cash<br>47) Differential Cost  48) Replacement cost  49) Committed  50) Discretion<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":5216,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,1],"tags":[2353],"class_list":["post-5092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-misc","tag-introduction-to-cost-accounting-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=5092"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5092\/revisions"}],"predecessor-version":[{"id":39273,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/5092\/revisions\/39273"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/5216"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=5092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=5092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=5092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}