MCQ Test

Q-1Labor which is related to

manufacturing of product is classified
as
A. direct manufacturing labor costs.
B. indirect manufacturing labor costs.
C. work in process cost.
D. finished costs.

Q-2Direct material costs are added

into direct manufacturing costs for
calculating are
A. discuss costs.
B. prime costs.
C. resale cost.
D. merchandise costs.

Q-3Prime cost is Rs50000 and direct

manufacturing labor is Rs10000 then
direct material cost will be
A. Rs40,000.
B. Rs60,000.
C. Rs52,000.
D. Rs20,000.

Q-4Direct material cost is Rs75000 and

direct manufacturing labor is
Rs20000 then prime cost would be
A. Rs55,000.
B. Rs37,500.
C. Rs95,000.
D. Rs26,000.

Q-5Direct material cost is Rs5500 and

prime cost is Rs25000 then direct
manufacturing labor would be
A. Rs19,500.
B. Rs30,500.
C. Rs45,500.
D. Rs22,500.

Q-6The following is also known as

overhead costs or on costs.
A. Cost of direct labour
B. Cost of indirect labour
C. Direct expenses
D. Indirect expenses

Q-7Cost of preparing drawings for

the manufacture of a particular
product is
A. Cost of direct labour
B. Cost of indirect labour
C. Direct expenses
D. Indirect expenses

Q-8Expenditure incurred on
material, labour, machinery,
production and inspection are
summed up to find the
A. Total cost of product
B. Selling price of product
C. Factory cost of product
D. None of the above

Q-9Cost accounting is a specialized

branch of accounting which deals with
A. classification, recording, allocation and
control of costs
B. classification, processing, allocation and
directing
C. classification, recording, planning and
control of costs
D. classification, recording, allocation and
directing

 Q-10 Formula of work cost