Sakthikailash Women’s College, Dharmapuri-5 I-M.

Com

Advanced Cost Accounting

Unit-I Cost Sheet
1. Classification of cost is useful to............
a) Find gross profit b) Find net profit
c) To identify costs d) None of these
2. Elements of cost are...........
a) Three types b) Two types
c) Four types d) Five types
3. Direct expenses are also called..........
a) Major expenses b) Sundry expenses
c) Overhead expenses d) Chargeable expenses
4. Factory overhead is also termed as manufacturing overhead or..............
a) Office overhead b) Selling overhead
c) Distribution overhead d) Production overhead
5. Warehouse rent is a part of.............
a) Prime cost b) Distribution overhead
c) Selling overhead d) Factory overhead
6. Indirect material scrap is adjusted along with........
a) Prime cost b) Work cost
c) In P&L a/c d) In trading account
7. Goodwill written off is a part of............
a) Prime cost b) Factory overhead
c) Office overhead d) None of these
8. Sale of defectives is reduced from............
a) Prime cost b) Work cost
c) Cost of production d) Cost of sales
9. Tender is a.............
a) Estimation of cost only b) Estimation of profit only
c) Estimation of selling price d) None of these
10. Cost of sales plus profit is..............
a) Selling price b) Value of finished goods
c) Value of goods produced d) Value of stocks

1 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

Unit-II Material
1. Material control involves………….
a) Consumption of material b) Issue of material
c) Purchase of material d) Purchase, storage and issue of material.
2. Material requisition is meant for……………..
a) Purchase of material b) Supply of material from stores
c) Sale of material d) None of the above
3. Stock control through stock levels and EOQ is called………….
a) Demand and supply method b) Perpetual inventory system
c) Control by importance and exception d) None of these
4. ABC analysis is…………….
a) Always better control b) Advantage of better control
c) At best control d) None of the above
5. JIT inventory system is …………….
a) Job in time b) Just inventory time
c) Just in time d) None of the above
6. Perpetual inventory system involves…………………
a) Bincard and stores ledger b) Bill of materials and material requisition
c) Purchase requisition and purchase order
d) Inward and outward invoices
7. FIFO is ……………………
a) Fast investment in future order b) First in first out
c) Fast issue of first orders d) None of these
8. LIFO method of pricing of material issues is more suitable when………….
a) Material prices are rising b) Material prices are falling
c) Material prices are fluctuating d) Material prices are unchanging
9. Average price methods are more suitable when………………
a) Material prices are rising b) Material prices are falling
c) Material prices are fluctuating d) Material prices are constant
10. Scrap is ………….
a) Residue of raw material b) Wastage of material
c) Surplus material d) Abnormal loss of material.

2 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

Unit-III Labour
1. Labour Turnover is.........
a) Productivity of Labour b) Efficiency of Labour
c) Change in Labour force d) None of these
2. Time study is for........
a) Measurement of work b) Fixation of standard Time
c) Ascertainment of actual hours d) None of these
3. Idle Time is...........
a) Time spent by workers in factory b) Time spent by workers off their work
c) Time spent by workers on their jobs d) None of these
4. Over Time is...........
a) Actual hours being more than Normal hours
b) Actual hours being more than standard hours
c) Standard hours being more than actual hours
d) None of these
5. Time keeping refers to..........
a) Time spent by workers on their jobs b) Time spent by workers in the factory
c) Time spent by workers without work d) None of these
6. Time booking refers to.........
a) Time spent by workers on their jobs b) Time spent by workers without work
c) Time spent by workers in the factory d) None of these
7. Job Evaluation is.........
a) Process of studying and assessing relative values of jobs
b) Studying methods of performance jobs
c) Determining the best way to perform jobs
d) None of these
8. Difference between attendance time and job time is.............
a) Job time b) Over time
c) Idle time d) Production time
9. Time wages are paid on the basis of............
a) Standard time b) Time saved
c) Output produced d) Actual time

3 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

10. Piece workers are paid on the basis of.........

a) Output sold b) Output produced
c) Output in stock d) None of these
11. Differential piece wages means........
a) Different wages for different levels of performance
b) Wages for different times consumed
c) Wages for Time saved
d) Nonu of these
12. Bonus under Halsey plan is paid..........
a) At 100% of Time saved b) At 75% of Time saved
c) At 80% of Time saved d) At 50% of time saved
13. Haley premium scheme is............
a) Individual incentive scheme b) Group incentive scheme
c) Time and piece wages system d) Different piece wages system
14.Bouns under Rowan scheme is paid
a) As a proportion of standard time to actual time
b) As a proportion of actual time to standard time
c) As a proportion of Time saved to standard time
d) None of these

4 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

Unit-IV Overhead
1. Overhead is also known as ………………..
a) On cost b) Basic cost
c) Extra cost d) Chargeable expense
2. Factory overhead is also termed as……………….
a) Sundry overhead b) Extra overhead
c) Works overhead d) None of these
3. Primary packing is a part of ………………
a) Distribution overhead b) Selling overhead
c) Factory overhead d) Prime cost
4. Appropriate basis for apportionment of material handling charges is ………….
a) Material purchased b) Material in stock
c) Material consumed d) Material wasted
5.'Recreation expenses 'in factory are apportioned on the basis of …………………..
a) Material cost b) Wages
c) Prime cost d) Number of employees
6. Sundry overhead expenses may be apportioned in the ratio of ………………..
a) Material consumed b) Number of employees
c) Labour hours d) None of these
7. Departmentalization of overhead is known as …………………….
a) Primary distribution b) Secondary distribution
c) Absorption d) None of these
8. Charging output with overhead at some reasonable rate is called
a) Allocation b) Absorption
c) Apportionment d) None of these
9. Under absorption of overhead takes place when……………….
a) Actual overhead is more than absorbed overhead
b) Absorbed overhead is more than actual overhead
c) Standard overhead is more than actual overhead
d) None of these
10. Comprehensive machine hour rate include
a) Machine operators’ wages b) Managing directors salary
c) Income tax d) Office rent

5 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

Unit-V Contract and Process Costing

1. Contract costing is the most appropriate method of costing for............
a) Construction industry b) Banking industry
c) Textiles Mills d) Cement industry
2. Cost of a contract and profit or loss there on are determined by preparing...............
a) Cost sheet b) P&L A/c
c) Trading account d) Separate ledger account
3. The basis for determining profit to be taken into account on incomplete contracts
is................
a) Cost of contract b) Contract price
c) Percentage of work certified as done d) Uncertified work
4. When there is loss on an incomplete contract the transfer to profit and loss account
is...........
a) Proportionate loss to work certified
b) Proportionate loss to cash received to work certified
c) Full amount of the loss
d) None of this
5. Usually a contract account of an incomplete contract reveals...........
a) Gross profit b) Net profit
c) Operating profit d) National profit
6. Profit to be transferred to profit and loss account if a contract is complete to the
extent of only 20%.............
a) 2/3 b) Nil
c)1/3 d) Full profit
7. When a contract is completed to the extent of 40% profit to be taken to profit and
loss account is...........
a) Full amount b) Nil
c)1/3 d)2/3
8. Process costing is suitable to industries where...........
a) Production is carried on in two or more consecutive stages
b) Production is as per customer specifications
c) specialized services are rendered
d) Contracts are under taken

6 Dr.K. Senthilkumar, Ph.D.

Sakthikailash Women’s College, Dharmapuri-5 I-M.Com

9. Process costing is ascertained and recorded in..........

a) balance sheet b) Profit and loss account
c) Separate statement d) Separation account in ledger
10. Finished products of a preceding process is..............
a) The raw material for subsequent process
b) Cost of production of subsequent process
c) Credited to subsequent process
d) None of this
11. Scrap value of normal loss is...........
a) Credited to profit and loss account b) Show in balance sheet
c) Credited to process account d) Debited to process account
12. Abnormal loss and gain units are valued at...........
a) Market value b) Scrap value
c) realisable value d) Cost per unit of the process just like good output
13. Cost of abnormal loss is shown in........
a) Balance sheet b) Profit and loss account credit side
c) Profit and loss account debit side d) None of this
14. Scrap value of abnormal loss and gain are transferred to.........
a) Balance sheet b) Profit and loss account debit side
c) Profit and loss account credit side
d) Abnormal loss or abnormal gain A/c in the ledger
15. Major purpose of ascertaining equivalent production is...........
a) To ascertain cost of output b) To find profit or loss
c) To control and reduce cost d) None of these
16. Inter process profits are.......
a) Credited to each process b) Debited to the respective process accounts
c) Shown only in the finished stock a/c d) Shown in the balance sheet
17. Joint cost of manufacturing are..........
a) Directly transfer to P &L A/c b) Divided to the products produced in the process
c) Shown as deferred costs in balance sheet
d) None of these

7 Dr.K. Senthilkumar, Ph.D.