Cost and Management Accounting 9

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Objective Questions and Answers of MBA: Cost and Management Accounting 9

Subject: Objective Questions and Answers of MBA: Cost and Management Accounting 9

Part 9: Objective questions and answers of Cost and Management Accounting


Q1. ______________ is one which can be conveniently identified with and charged to a particular unit of cost.

a) Direct cost

b) Indirect cost

c) Overhead

d) None of these


Q2. Stores ledger is maintained in the ______________

a) Store

b) Finance department

c) Cost accounting department

d) Both a & b


Q3. Specific price method of valuing material issue is used when ______________

a) Materials are purchased for specific job or work order

b) Materials are subject to natural wastage

c) Prices fluctuate

d) None of these


Q4. ______________ is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.

a) Abc analysis

b) Jit inventory system

c) Ved analysis

d) Perpetual inventory system


Q5. ______________ is a method of evaluating the job in terms of its money value.

a) Job analysis

b) Job evaluation

c) Work measurement

d) Motion study


Q6. Taylors differential piece rate system provides for higher rate to ______________ workers.

a) Inefficient

b) Efficient

c) Both a & b

d) Lazy


Q7. Basis of apportionment of stores service expenses is ______________

a) Value of materials consumed

b) Units of material consumed

c) Products produced

d) None of these


Q8. Expenses incurred during production other than direct materials and direct labour are called ______________ factory expenses; those charged to production on estimated basis are called ______________

a) Actual, applied

b) Applied, actual

c) Indirect, direct

d) None of these


Q9. An automobile service unit uses ______________ costing.

a) Specific order

b) Batch

c) Job

d) Contract


Q10. When the completion stage of a contract is less than %, the total expenditure on the contract is transferred to ______________ account.

a) Work-in-progress

b) Profit and loss account

c) Miscellaneous account

d) None of these


Q11. In transportation costing a composite unit such as ______________ is used.

a) Passenger mile/km or ten kilometer

b) Per km

c) Per passenger

d) Per stop


Q12. Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is ______________

a) Job costing

b) Operating costing

c) Process costing

d) Both b and c


Q13. The cost of ______________ process loss is absorbed in the cost of production of good units.

a) Abnormal

b) Normal

c) Both a & b

d) None of these


Q14. The budget relating to ______________ must be prepared first and the other budgets should be prepared in the light of that factor.

a) Limiting factor

b) Materials

c) Labour

d) Production


Q15. Calendar 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


Q16. The budget that is prepared first of all is ______________

a) Cash budget

b) Master budget

c) Budget for the key factor

d) Sales budget


Q17. Material price variance is the difference between standard and actual prices of materials used multiplied by ______________

a) Actual quantity of materials used

b) Budgeted quantity of materials used

c) Standard quantity of materials used

d) Either a or b


Q18. Total labour cost variance=

a) Standard cost of labour – actual cost of labour

b) Standard rate(standard time for actual output-actual time worked)

c) Standard rate (standard time for actual output- actual time paid for)

d) Actual time taken (standard rate-actual rate)


Q19. ______________ is an example of long-term budget

a) Cash budget

b) Capital expenditure budget

c) Research and development budget

d) Both b & c


Q20. ______________ helps in ascertaining costs beforehand.

a) Financial accounting

b) Cost accounting

c) Management accounting

d) None of these



Part 9: Objective questions and answers of Cost and Management Accounting


Q1. Answer a


Q2. Answer c


Q3. Answer a


Q4. Answer a


Q5. Answer b


Q6. Answer b


Q7. Answer a


Q8. Answer a


Q9. Answer c


Q10. Answer a


Q11. Answer a


Q12. Answer c


Q13. Answer b


Q14. Answer a


Q15. Answer a


Q16. Answer c


Q17. Answer a


Q18. Answer a


Q19. Answer c


Q20. Answer b

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