Cost and Management Accounting 15

Objective Questions and Answers of MBA: Cost and Management Accounting 15

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 15

Part 15: Objective questions and Answers of Cost and Management Accounting

Q1. Economic batch quantity is an important point to be determined in industries where ______________ costing is employed.

a) Job

b) Batch

c) Operation

d) Output

Q2. Maintenance charges are in the nature of ______________ expenses.

a) Fixed

b) Variable

c) Semi-variable

d) None of these

Q3. Activity 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

Q4. Average unit cost for each process is calculated by dividing the ______________ by ________

a) Total cost, number of units

b) Total process cost, number of units in process

c) Total process cost, number of finished goods

d) Total cost, number of units produced

Q5. An input of 5000kg of material introduced into the process and the expected loss is 8% and if the actual output from the process is 4300, the abnormal loss is ______________ kg

a) 400

b) 300

c) 500

d) 600

Q6. The budget which commonly takes the form of budgeted profit and loss account and balance sheet is

a) Cash budget

b) Master budget

c) Flexible budget

d) Fixed budget

Q7. Labour cost variance is the difference between standard cost of labour and ________

a) Budgeted cost of labour

b) Estimated cost of labour

c) Actual cost of labour

d) None of these

Q8. A favourable variance will arise when capital revenues are ______________ than expected.

a) More

b) Less

c) Lesser

d) None of the above

Q9. ______________ is a post mortem of past costs.

a) Financial accounting

b) Cost accounting

c) Both a & b

d) None of these

Q10. Cost accounting provides data for managerial ______________

a) Decision making

b) Recruitment

c) Retrenchment

d) None of the above.

Q11. If the amount of work certified is less than ______________ of the contract price, then no profit should be taken to profit & loss account.

a) 20%

b) 25%

c) 33 1/3%

d) 40%

Q12. Boiler house costing is an example of ______________ costing

a) Operation

b) Process

c) Service

d) None of these

Q13. When actual loss is ______________ than the estimated loss, the difference between the two is considered to be abnormal loss.

a) More

b) Less

c) Both a & b

d) None of these

Q14. ______________ Budget may be classified into material cost budget, labour cost budget and overhead budget.

a) Cost of production

b) Purchase

c) Sales

d) Cash

Q15. Overhead expenses can be classified according to:

a) Functions

b) Elements

c) Behavior

d) All of the above

Q16. Sales budget is a

a) Functional budget

b) Master budget

c) Expenditure budget

d) None of these

Q17. The deviation of the actual cost or profit or sales from the standard cost or profit or sale is known as ______________

a) Difference

b) Variance

c) Discrepancy

d) Inconsistency

Q18. The technique of standard costing may not be applicable in case of

a) Large concerns

b) Small concerns

c) All concerns

d) Both b & c

Q19. Labour rate variance is computed by multiplying the

a) Standard labour rate with the difference between standard labour hours and actual labour hours

b) Actual labour hours with the difference between standard labour hours and actual labour hours

c) Actual labour rate with the difference between standard labour rate and actual labour hours.

d) None of the above

Q20. Operating costing is also known as ______________ costing.

a) Service

b) Batch

c) Multiple

d) Job

Part 15: Objective questions and Answers of Cost and Management Accounting