Cost and Management Accounting 12

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Objective Questions and Answers of MBA: Cost and Management Accounting 12

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 12

Part 12: Objective questions and Answers of Cost and Management Accounting

 

Q1. In ______________ each job is a cost unit to which all costs are assigned.

a) Batch costing

b) Job costing

c) Process costing

d) Operation costing

 

Q2. Contract costing is not used in one of the following industries.

a) Ship building

b) Civil construction

c) Automobiles

d) Construction of bridges

 

Q3. Service costing is not used in one of the following:

a) Electricity

b) Hospitals

c) Transport

d) Electronics

 

Q4. When 1000 units are 60% complete in a process, it is equivalent to ______________ completed units.

a) 60

b) 600

c) 6000

d) 1000

 

Q5. Budgeting system ______________ key managerial functions

a) Dismisses

b) Integrates

c) Discharges

d) None of these

 

Q6. Efficiency ratio=

a) Number of actual working days in a period x 100 number of working days in the budget period

b) Actual hours worked x 100 budgeted hours

c) Standard hours for actual production x 100 actual hours worked

d) Standard hours for actual production x 100 budgeted standard hours

 

Q7. Volume variance is divided into ______________

a) Capacity variance, calendar variance and expenditure variance

b) Capacity variance, calendar variance and efficiency variance

c) Capacity variance, expenditure variance and efficiency variance

d) Calendar variance, expenditure variance and efficiency variance

 

Q8. An unfavorable material price variance occurs because of:

a) Price increase in raw materials

b) Price decrease in raw materials

c) Less than anticipated normal wastage in the manufacturing process

d) More than anticipated normal wastage in the manufacturing process

 

Q9. The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favorable or unfavorable are _______

a) Capacity ratio, activity ratio

b) Efficiency ratio, calendar ratio

c) Both a & b

d) None of the above

 

Q10. Service costing is used in industries producing ______________

a) Products

b) Service

c) Both a & b

d) None of these

 

Q11. Cost accounting provides detailed information about ______________ of various products, processes, services and operations.

a) Costs

b) Income

c) Either a or b

d) None of these.

 

Q12. Fixed cost per unit ______________ with rise in output and ______________ with fall in output.

a) Decreases, increases

b) Increases, decreases

c) Is constant, remains same

d) None of the above

 

Q13. An item of cost that is direct for one business may be ______________ for another business.

a) Important

b) Direct

c) Indirect

d) None of the above.

 

Q14. Stock verification sheets are maintained to record the results of ______________

a) Physical verification

b) Financial control

c) Financial verification

d) Quality verification

 

Q15. A bill of material is prepared in case of a ______________ job

a) Standard job

b) Non-standardized job

c) Both a & b

d) None of these

 

Q16. Cost accounting is based on ______________ figures.

a) Estimated

b) Historical

c) Actual

d) None of these.

 

Q17. Cost centre and cost unit are ______________

a) Not the same

b) The same

c) Not related

d) None of these

 

Q18. Fixed cost per unit ______________ with increase in output.

a) Decreases

b) Increases

c) Changes

d) Sometimes

 

Q19. Inflated price method of valuing material issues is suitable when ______________

a) Materials are subject to natural wastage

b) Prices rise

c) Prices fall

d) None of these

 

Q20. Inventory turnover in days = days during the period ÷ ______________

a) Inventory turnover ratio

b) Material consumed during the period

c) Cost of average stock during the period

d) None of these

 

Part 12: Objective questions and Answers of Cost and Management Accounting

 

Q1. Answer b

 

Q2. Answer c

 

Q3. Answer d

 

Q4. Answer b

 

Q5. Answer b

 

Q6. Answer c

 

Q7. Answer b

 

Q8. Answer a

 

Q9. Answer c

 

Q10. Answer b

 

Q11. Answer a

 

Q12. Answer a

 

Q13. Answer c

 

Q14. Answer a

 

Q15. Answer b

 

Q16. Answer a

 

Q17. Answer a

 

Q18. Answer a

 

Q19. Answer a

 

Q20. Answer a

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