COST ACCOUNTING MCQ TEST OF 1st UNIT

NAME : _____________________________________________________.

MARK SECURED : _____________

1. In India cost and works accountant act was passed in the year

a. 1949. b. 1959. c. 1969. d. 1979

2. Terminal costing is another name of

a. Job costing. b. Contact costing

c. Multiple costing. d. Process costing

3. Rent of factory building is a

a. Semi variable cost. b. Variable cost

c. Period cost. d. Marginal cost

4. The cost which remain unchanged by changes in volume of output is called

a. Variable cost. b. Fixed cost

c. Semi variable cost. d. Marginal cost

5. Cost of production is equal to

a. Prime cost + work cost. b. Work cost + office cost

c. Prime cost + office cost. d. Total cost - prime cost

6. The past cost which has been incurred as a result of a decision made in the past is called

a. Conversion cost. b. Sunk cost

c. Controllable cost. d. Uncontrollable cost

7. The method of costing which is concerned with a work order is called

a. Batch costing. b. Process costing

c. Unit costing. d. Job costing

8. When cost price is Rs. 4950 and profit on cost is 10% , the profit shall be
a. Rs. 495. b. Rs. 550. c. Rs. 545. d. Rs 450

9. Classification of cost into material , labour and expenses is based on the

classification ,which is

a. Nature wise. b. Function wise

c. Behaviour wise. d. Industry wise

10. The industry to which job costing is applicable for

a. Construction. b. Printing

c. Cement. d. Oil

11. Cost accounting is based on

a. Actual figure. b. Historical figure

c. Estimated figure. d. Imaginary figure

12. In cost accounting , closing stock is valued at

a. Market price. b. Cost price. c. Average price

d. Market price or cost price which ever is less

13. Another name of variable costing is

a. Standard costing. b. Multiple costing

c. Operation costing. d. Marginal costing

14. When product is continuous and units produced are identical

a. Unit costing is applicable. b. Process costing is applicable

c. Batch costing is applicable. d. Output costing is applicable

15. Batch costing is applicable for

a. Readymade garments. b. Textile mills

c. Chemical industries. d. Bicycle manufacturing

16. Which costing is used in transport undertakings

a. Operation costing. b. Operating costing

c. Contract cost. d. Multiple costing

17. Royalty paid on the basis of units produced is

a. Direct expenses. b. Indirect expenses

c. Factory overheads. d. Administration overheads

18. Primary packing expenses form a part of which cost?

a. Prime cost. b. Work cost.

c. Selling & distribution cost. d. Factory cost

19. Which method of costing is most suitable for automobil repairs workshops ?

a. Process costing. b. Job costing

c. Operating costing. d. Operation costing

20. Advertising is a

a. Selling cost. b. Distribution cost

c. Manufacturing cost. d. Administration cost

21. The variable cost per unit remains

a. Variable. b. Semi variable

c. Fixed. d. Semi fixed

22. Rent and rates comes under

a. Fixed overheads. b. Variable overheads

c. Semi variable overheads. d. Semi fixed overheads

23. Which technique of costing is helpful for interfirm comparison

a. Marginal costing. b. Standard costing

c. Absorption costing. d. None of these

24. The sum of direct wages , direct expenses and factory overheads is called
a. Manufacturing cost. b. Prime cost

c. Conversion cost. d. Factory cost

25. Job order costing is applied

a. In mass production industries

b. When the production is continuous.

c. Where work is undertaken to customers special requirements.

d. When a product is produced through several process.