Cost and Management Accounting 8

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Objective Questions and Answers of MBA: Cost and Management Accounting 8

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 8

Part 8: Objective questions and answers of Cost and Management Accounting


Q1. Cost accountancy is the science, art and ______________ of a cost accountant.

a) Practice

b) Exercise

c) Hard work

d) Effort


Q2. An opportunity cost is ______________

a) The advantage foregone

b) The cost

c) The income

d) None of the above.


Q3. Material abstract is also known as ______________

a) Material issue analysis sheet

b) Bill of materials

c) Stores ledger

d) None of the above


Q4. The principle types of inventories are raw materials and, ______________ and finished goods

a) Processed materials

b) Goods-in-progress

c) Stored goods

d) Goods for dispatch


Q5. ______________ forms part of cost of production.

a) Abnormal waste

b) Normal waste

c) Both a & b

d) None of these


Q6. ______________ is the assessment of the relative worth of jobs within a company whereas ______________ is the assessment of the relative worth of man behind the job.

a) Job evaluation , merit rating

b) Job analysis, job evaluation

c) Job analysis, merit rating

d) None of these


Q7. Under merrick's multiple piece rate system, 120% 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


Q8. Machine hour rate is obtained by dividing the total running expenses of a machine during a particular period by the ______________

a) Number of hours

b) Number of products produced

c) Number of workers

d) Wages


Q9. Salary paid to general manager is an item of ______________ expenses.

a) Fixed

b) Variable

c) Semi-variable

d) Estimated


Q10. Warehousing cost is an item of

a) Office overhead

b) Distribution overhead

c) Material cost

d) Works overhead


Q11. Economic batch quantity depends on ______________ and ______________ costs.

a) Material, labour

b) Set-up costs, carrying

c) Transportation, carrying

d) Warehousing, labour


Q12. Room/day is the cost unit used in ______________

a) Hotels

b) Hospital

c) Schools

d) None of these


Q13. A bus carries 25 passengers daily for 25 days and its mileage per month is 1000 kms. Its passenger miles are ______________

a) 30,000

b) 12,500

c) 20,000

d) 25,000


Q14. When actual loss is ______________ than the estimated loss, the difference between the two is considered to be abnormal gain

a) More

b) Less

c) Higher

d) None of these


Q15. ______________ arises where the actual process loss is less than the normal predetermined process loss.

a) Normal loss

b) Abnormal loss

c) Abnormal gain

d) None of these


Q16. ______________ is the consolidated summary of the various functional budgets.

a) Master budget

b) Sales budget

c) Performance budget

d) Cash budget


Q17. Cash budget is a ______________ budget.

a) Long term

b) Very long term

c) Short term

d) Very short term


Q18. Standard costing is more widely applied in ______________ industries.

a) Process and engineering

b) Jobbing industries

c) Construction industry

d) All of these


Q19. Total material cost variance=

a) Standard cost of materials-actual cost of materials

b) Budgeted cost of materials- actual cost of materials

c) Standard cost of materials-budgeted cost of materials

d) Actual cost of materials- budgeted cost of materials


Q20. An unfavourable material usage arises because of:

a) Price increase in raw materials

b) Price decrease in raw mateials

c) Less than anticipated normal wastage in the manufacturingprocess

d) More than anticipated normal wastage in the manufacturing process


Part 8: Objective questions and answers of Cost and Management Accounting


Q1. Answer a


Q2. Answer a


Q3. Answer a


Q4. Answer b


Q5. Answer b


Q6. Answer a


Q7. Answer b


Q8. Answer a


Q9. Answer a


Q10. Answer b


Q11. Answer b


Q12. Answer a


Q13. Answer d


Q14. Answer b


Q15. Answer c


Q16. Answer a


Q17. Answer c


Q18. Answer a


Q19. Answer a


Q20. Answer d

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