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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