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Cost and Management Accounting-615A
Multiple Choice Questions.
1. Basic objectives of cost accounting is .
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D.profit analysis.
ANSWER: C
2. Direct cost incurred can be identified with .
A. each department.
B. each unit of output.
C. each month.
D.each executive.
ANSWER: B
3. Overhead cost is the total of .
A. all indirect costs.
B. all direct costs.
C. indirect and direct costs.
D.all specific costs.
ANSWER: A
4. Imputed cost is a .
A. notional cost.
B. real cost.
C. normal cost.
D.variable cost.
ANSWER: A
5. Operating costing is suitable for .
A. job order business.
B. contractors.
C. sugar industries.
D.service industries.
ANSWER: D
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6. Process costing is suitable for .
A. hospitals.
B. oil reefing firms.
C. transport firms.
D.brick laying firms.
ANSWER: B
7. Cost classification can be done in .
A. two ways.
B. three ways.
C. four ways.
D.several ways.
ANSWER: D
8. Costing refers to the techniques and processes of
A. ascertainment of costs.
B. allocation of costs.
C. apportion of costs.
D.distribution of costs.
ANSWER: A
9. Cost accounting was developed because of the .
A. limitations of the financial accounting.
B. limitations of the management accounting.
C. limitations of the human resource accounting.
D.limitations of the double entry accounting.
ANSWER: A
10. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by.
A. the same firm.
B. the several firms.
C. the same industry.
D.the several industries.
ANSWER: A
11. Wages paid to a labour who was engaged in production activities can be termed as.
A. direct cost.
B. indirect cost.
C. sunk cost.
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D. imputed cost.
ANSWER: A
12. The cost which is to be incurred even when a business unit is closed is a.
A. imputed cost.
B. historical cost.
C. sunk cost.
D. shutdown cost.
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ANSWER: D
13. Classification of cost is useful .
A. to find gross profit.
B. to find net profit.
C. to identify costs.
D.to identify efficiency.
ANSWER: C
14. Elements of costs are.
A. three types.
B. four types.
C. five types.
D.seven types.
ANSWER: A
15. Direct expenses are also called .
A. major expenses.
B. chargeable expenses.
C. overhead expenses.
D.sundry expenses.
ANSWER: B
16. Indirect material used in production is classified as.
A. office overhead.
B. selling overhead.
C. distribution overhead.
D.production overhead.
ANSWER: D
17. Warehouse rent is a part of .
A. prime cost.
B. factory cost.
C. distribution cost.
D.production cost.
ANSWER: C
18. Indirect material scrap is adjusted along with .
A. prime cost.
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Cost and Management Accounting-615A
Multiple Choice Questions.
1. Basic objectives of cost accounting is .
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D.profit analysis.
ANSWER: C
2. Direct cost incurred can be identified with .
A. each department.
B. each unit of output.
C. each month.
D.each executive.
ANSWER: B
3. Overhead cost is the total of .
A. all indirect costs.
B. all direct costs.
C. indirect and direct costs.
D.all specific costs.
ANSWER: A
4. Imputed cost is a .
A. notional cost.
B. real cost.
C. normal cost.
D.variable cost.
ANSWER: A
5. Operating costing is suitable for .
A. job order business.
B. contractors.
C. sugar industries.
D.service industries.
ANSWER: D
http://www.commercepk.com/mcqs-complete-solved-multiple-choice-question-with-answer-key/
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6. Process costing is suitable for .
A. hospitals.
B. oil reefing firms.
C. transport firms.
D.brick laying firms.
ANSWER: B
7. Cost classification can be done in .
A. two ways.
B. three ways.
C. four ways.
D.several ways.
ANSWER: D
8. Costing refers to the techniques and processes of
A. ascertainment of costs.
B. allocation of costs.
C. apportion of costs.
D.distribution of costs.
ANSWER: A
9. Cost accounting was developed because of the .
A. limitations of the financial accounting.
B. limitations of the management accounting.
C. limitations of the human resource accounting.
D.limitations of the double entry accounting.
ANSWER: A
10. Multiple costing is a technique of using two or more costing methods for ascertainment of cost by.
A. the same firm.
B. the several firms.
C. the same industry.
D.the several industries.
ANSWER: A
11. Wages paid to a labour who was engaged in production activities can be termed as.
A. direct cost.
B. indirect cost.
C. sunk cost.
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D. imputed cost.
ANSWER: A
12. The cost which is to be incurred even when a business unit is closed is a.
A. imputed cost.
B. historical cost.
C. sunk cost.
D. shutdown cost.
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ANSWER: D
13. Classification of cost is useful .
A. to find gross profit.
B. to find net profit.
C. to identify costs.
D.to identify efficiency.
ANSWER: C
14. Elements of costs are.
A. three types.
B. four types.
C. five types.
D.seven types.
ANSWER: A
15. Direct expenses are also called .
A. major expenses.
B. chargeable expenses.
C. overhead expenses.
D.sundry expenses.
ANSWER: B
16. Indirect material used in production is classified as.
A. office overhead.
B. selling overhead.
C. distribution overhead.
D.production overhead.
ANSWER: D
17. Warehouse rent is a part of .
A. prime cost.
B. factory cost.
C. distribution cost.
D.production cost.
ANSWER: C
18. Indirect material scrap is adjusted along with .
A. prime cost.
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