Cost and Management Accounting 14

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Objective Questions and Answers of MBA: Cost and Management Accounting 14

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 14

Part 14: Objective questions and Answers of Cost and Management Accounting


Q1. The requirements of a particular job are known as ______________

a) Job description

b) Job specifications

c) Job evaluation

d) Both a & b


Q2. Under merrick's multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between. Of the standard output.

a) 83% and 100%

b) 100% and 120%

c) 0% and 83%

d) None of these


Q3. The per unit expense of the ______________ portion factory overhead varies with the volume of production while ______________ portion remains the same with volume.

a) Fixed, variable

b) Variable, fixed

c) Variable, semi-variable

d) None of these


Q4. Printers use ______________ costing.

a) Process

b) Batch

c) Job

d) Contract


Q5. The sum of value of work certified and uncertified appearing in the contract account is called ______________

a) Work in progress

b) Work in process

c) Work completed

d) Work done.


Q6. When the actual loss is more than the estimated loss, the difference between the two is considered to be ______________

a) Abnormal loss

b) Normal loss

c) Loss

d) None of these


Q7. In process costing, the abnormal loss is treated as ______________ cost and written off to profit & loss account.

a) Unit

b) Period

c) Future

d) Process


Q8. ______________ is a summary of all function budgets in a capsule form.

a) Master budget

b) Sales budget

c) Performance budget

d) Cash budget


Q9. The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:

a) Includes only fixed costs, while a variable budget includes only variable costs.

b) Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales.

c) Cannot be changed after the period begins, while a variable budget can be changed after the period begins.

d) Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)


Q10. Idle time variance is ______________

a) Idle time x actual labour

b) Idle time x standard rate

c) Idle time x budgeted labour rate

d) Idle time x historical cost


Q11. Telephone expense is ______________ expense.

a) Variable

b) Semi-variable

c) Fixed

d) None of these


Q12. Volume variance arises because of :

a) Increase in overhead rate per hour

b) Decrease in overhead rate per hour

c) Increase or decrease in actual output as compared to the budgeted output.

d) Difference in budgeted overheads and actual overheads.


Q13. ______________ costing is applicable to printers.

a) Process

b) Batch

c) Multiple

d) Job


Q14. The total variable cost ______________ in total proportion to output.

a) Increases

b) Does not increase

c) Decreases

d) None of these.


Q15. Standard costs is ______________

a) Predetermined cost

b) Budgeted cost

c) Actual cost

d) None of these


Q16. Out of pocket costs involve payment to ______________

a) Outsiders

b) Self

c) Employees

d) None of the above


Q17. Market price method is considered to be the best method when ______________

a) Quotations have to be sent

b) Prices fluctuate

c) Materials are subject to natural wastage

d) None of these


Q18. ______________ is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory

a) Abc analysis

b) Jit inventory system

c) Ved analysis

d) Perpetual inventory system


Q19. For conducting ______________ workers are studied at their jobs and all their movements and motions are noted.

a) Time study

b) Motion study

c) Merit rating

d) None of these


Q20. Basis of apportionment of welfare department expenses is ______________

a) Wages of each department

b) Number of employees

c) Materials consumed

d) Number of machineries


Part 14: Objective questions and Answers of Cost and Management Accounting


Q1. Answer a


Q2. Answer a


Q3. Answer a


Q4. Answer c


Q5. Answer a


Q6. Answer a


Q7. Answer b


Q8. Answer a


Q9. Answer d


Q10. Answer b


Q11. Answer b


Q12. Answer c


Q13. Answer d


Q14. Answer a


Q15. Answer a


Q16. Answer a


Q17. Answer a


Q18. Answer b


Q19. Answer b


Q20. Answer b

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