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.
61. Direct expense are also called ……………… expenses
a) Semi-variable
b) Chargeable
c) Fixed
Answer:- b
62. Operating costing is applicable to
a) Transport
b) Hospitals
c) Electricity
Answer:- a
63. Rent on own building is a ………………..
a) Sunk cost
b) Imputed cost
c) Opportunity cost
Answer:- b
64. When material prices fluctuate widely the method of pricing that gives a best result in
a) Simple average
b) Weighted average
c) FIFO
Answer:- b
65. Which of the following is considered to be a normal loss of material
a) Loss due to accident
b) Loss due to breaking of bulk material
c) Loss due to careless handling
Answer:- b
66. Store keeper should initiate a purchase requisition when stock reacher
a) Minimum level
b) Maximum level
c) Re – order level
Answer:- c
67. Goods received note is prepared by ……………………..
a) Goods received clerk
b) Purchase manager
c) Store keeper
Answer:- c
68. …………. Is a discount allowed to the bulk purchase
a) Trade discount
b) Cash discount
c) Bad debt
Answer:- a
69. Buffer stock of material means ………………………..
a) Maximum stock of material
b) Minimum stock of material
c) Average stock of material
Answer:- b
70. A written request to a supplier for specified goods at an agreed rate
a) Purchase order
b) Purchase requisition
c) Receiving report
Answer:- a
