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.
151. ………………. Account is used to reconcile the cost and financial Accounts
a) Memorandum reconciliation account
b) Memorandum of association account
c) Article of association account
Answer:- a
152. When the actual overhead are less than expenses absorbed, it is Known as ………………..
a) Absorption
b) Under absorption
c) Over absorption
Answer:- c
153. The cost which is incurred for the benefit of a number of cost centre
a) Joint cost
b) over head
c) Direct cost
Answer:- b
154. Variable overhead remain
a) Fixed per unit
b) Variable per unit with volume
c) Fixed for any level of output
Answer:- a
155. The allotment of whole item of cost to the centre or cost unit is called
a) Appointment
b) Allocation
c) Absorption
Answer:- b
156. Absorption means ………………………………….
a) Charging of overheads to cost sheet
b) Charging of overheads to cost units
c) Charging of overheads to cost units or cost centres
Answer:- c
157. Which of the following is most likely to be an allocated production overhead cost to the finishing centre
a) Factory rates
b) Salary of the production manager
c) salary of finishing cost centre supervisor
d) Power used on finishing cost centre machines
Answer:- b
158. Apportionment of overhead cost may be defined as
a) Charge to cost centre of an overhead cost item with no estimation.
b) Charge each cost centre with a share of an overhead cost using an appropriate basis to estimate the benefit extracted by each cost centre .
c) Charge to cost units for the use of an overhead costs
d) Classification of over head cost or fixed or variable
Answer:- b
159. Which of the following is an illustration of reciprocal service costs?
a) The maintenance cost centers uses 10% of the power generating cost centre cost and the power generating cost uses 15% of the maintenance cost centre
b) Maintenance costs are charged to the power generating cost Centre which are then charged to the production cost centre Using power
c) Service cost centre costs are caused because of the requirements of production cost centers
d) The use of service results in reciprocal action by the service cost centre where by it charges the use of cost centre
Answer:- a
160. Which of the following is most likely to be an allocated production overhead cost to the finishing cost centers?
a) Factory cost
b) Salary of the production manager
c) Salary of the finishing cost centre supervisor
d) Power used on finishing cost centre machines
Answer:- c
