Cost Accounting MCQ
What Is Cost Accounting?
Cost accounting is a method of managerial accounting which aims to capture the total production cost of a business by measuring the variable costs of each production phase as well as fixed costs, such as a lease expense.
Examples include rent, depreciation, interest on loans and lease expenses. Direct, indirect, fixed, and variable are the 4 main kinds of cost. In addition to this, you might also want to look into operating costs, opportunity costs, sunk costs, and controllable costs.
131. Time lost in the course of normal activity is known as
a) Idle time
b) Abnormal idle time
c) Over time
d) Normal idle time
Answer:- d
132. Where there are separate cost and financial accounts the problem of ……………… arise
a) Accounting
b) Reconciliation
c) Vouching
Answer:- b
133. Loss arising from the sale of fixed asset is ……………
a) Purely financial charges
b) purely costing charges
c) Both financial and costing charges
Answer:- a
134. Loss on investment is ……………………………………….
a) Purely financial charges
b) purely costing charges
c) Both financial and costing charges
Answer:- a
135. Discount on debentures is …………………….
a) Purely financial charges
b) Purely costing charges
c) Both financial and costing charges
Answer:- a
136. ……….. Method of charging depreciation may have been adopted in cost accounts
a) Machine hour rate
b) Fixed installment
c) diminishing balance method
Answer:- a
137. . ……….. Method of charging depreciation may have been adopted in cost accounts
a) Straight line method
b) Fixed installment method
c) production hour method
Answer:- c
138. ……….. Method of charging depreciation may have been adopted in financial accounts
a) Straight line method
b) Fixed installment method
c) production hour method
Answer:- a
139. Closing stock is valued at cost price or market price whichever is less under ………………… accounts
a) Financial
b) Cost
c) Overhead
Answer:- a
140. In cost sheet raw materials are taken in ……………………..
a) FIFO
b) Prime cost
c) Total cost
Answer:- b
