Cost and Management Accounting 11

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Objective Questions and Answers of MBA: Cost and Management Accounting 11

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 11

Part 11: Objective questions and Answers of Cost and Management Accounting


Q1. Fancy packing is an example of ______________ expenses.

a) Selling

b) Distribution

c) Administration

d) Factory


Q2. Where the work is undertaken to customers' special requirements and each order is of comparatively short-duration, it is called ______________ costing.

a) Job

b) Batch

c) Operation

d) Output


Q3. In transport costing ______________ charges vary more or less in direct proportion to kilometers run.

a) Running

b) Petrol

c) Drivers salary

d) Tax


Q4. The method of costing applied in biscuit industries is ______________ costing and in steel industry ______________ costing.

a) Job, process

b) Job, contract

c) Batch, multiple

d) Process, operation


Q5. Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be ______________

a) Abnormal loss

b) Normal loss

c) Abnormal gain

d) Normal gain


Q6. ______________ Budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

a) Master

b) Fixed

c) Flexible

d) All of these


Q7. Standard cost is a ______________ cost

a) Predetermined

b) Historical

c) Actual

d) Final


Q8. Material price variance = actual usage ( ______________ )

a) Standard price

b) Standard unit price-actual unit price

c) Actual price

d) Standard usage


Q9. ______________ is an example of short-term budget

a) Cash budget

b) Capital expenditure budget

c) Material budget

d) Both a & c


Q10. The scope of cost accounting include ______________, and ______________

a) Cost ascertainment, cost presentation, cost control

b) Tax planning, tax accounting, financial accounting

c) Presentation of accounting information, creation of policy, day-to day operation

d) None of the above


Q11. ______________ is not the scope ofcost accountancy.

a) Ascertaining cost

b) Cost accounting

c) Cost control

d) Tax planning


Q12. Sunk costs are ______________ for decision-making

a) Irrelevant

b) Relevant

c) Useful

d) None of these.


Q13. ______________ are costs which have been applied against revenue of particular accounting period.

a) Expenses

b) Income

c) Loss

d) None of these


Q14. Variable costs change ______________ with change in output.

a) Proportionately

b) Inversely

c) Disproportionately

d) Sometimes


Q15. First in first out method of valuing material issues is suitable in times of _________

a) Rising prices

b) Falling prices

c) Fluctuating prices

d) None of these


Q16. Cost accounting has been developed because of ______________ financial accounting.

a) Limitations

b) Advantages

c) Both a & b

d) None of these


Q17. Which of the following is not included in functional classification of overheads?

a) Repairs and maintenance

b) Lubricating oil

c) Consumable stores

d) Chargeable expenses


Q18. Cost of production is equal to ______________

a) Works cost plus administration overheads

b) Prime cost plus works cost

c) Prime cost plus works overhead

d) Works overhead plus administration overheads


Q19. ______________ is the maximum possible alternative earning that might have been earned if the productive capacity is put to some alternative use.

a) Opportunity

b) Incremental revenue

c) Alternative revenue

d) None of these


Q20. Material control aims at achieving effective ______________

a) Material management

b) Quality control

c) Accounting of material

d) Material supply


Part 11: Objective questions and Answers of Cost and Management Accounting


Q1. Answer a


Q2. Answer a


Q3. Answer a


Q4. Answer a


Q5. Answer c


Q6. Answer b


Q7. Answer a


Q8. Answer b


Q9. Answer d


Q10. Answer a


Q11. Answer d


Q12. Answer a


Q13. Answer a


Q14. Answer a


Q15. Answer b


Q16. Answer a


Q17. Answer d


Q18. Answer a


Q19. Answer a


Q20. Answer a

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