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. Join Our Telegram Channel For More MCQs
11. Depreciation is ………….. Expenditure
a) Variable
b) Semi – variable
c) Fixed
d) None of the above
Answer:- b
12. Out – of pocket costs involve payment to ……………………….
a) Management
b) Out siders
c) Employees
d) Owners
Answer:- b
13. The cost that can be identified with a cost until is called ……………..
a) Direct cost
b) Overhead
c) Indirect
d) Cost of production
Answer:- a
14. Cost incurred in part have no effect on future decision making is called…………….
a) Period cost
b) Opportunity cost
c) Sunk cost
d) Marginal costing
Answer:- c
15. The value of a benefit sacrificed in favor of an alternative course of action, is called …………………………
a) Period cost
b) Opportunity cost
c) Sunk cost
d) Marginal cost
Answer:- c
16. Cost unit for a cable industry is
a) Per tone
b) Per cost
c) Per meter
d) Per cubic foot
Answer:- c
17. Tonne kilometer is the cost unit of ………………
a) Auto mobile
b) Quarries
c) Transport service
d) Electricity
Answer:- c
18. Direct labour costs would includes wages paid to all the following except
a) Machine operators
b) Assembly line workers
c) Janitors
d) Brick layers
Answer:- c
19. Indirect labour costs would include wages paid to the following except
a) Machine operators
b) Material handlers
c) Store keepers
d) Fork lift operators
Answer:- a
20. Overhead consists of all the following except
a) Indirect materials
b) Direct – labour
Answer:- b
