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.
71. Surprise physical checking is a feature of
a) Perpetual inventory system
b) ABC analysis
c) Impress system
Answer:- a
72. A purchase requisition is raised ………………………………
a) To ultimate to the supplier the quantity and quality of new
material required
b) When the stock of raw material has follow to the re order level
c) When goods are received from a supplier
Answer:- b
73. Normal loss in a process is ………………………………………
a) Un avoidable
b) Avoidable
c) Arise due to defective
Answer:- a
74. The cost of normal wastage less scrap value if any born by
a) Good units
b) Abnormal wastage
c) Abnormal effectiveness
Answer:- a
75. Purchase order is prepared by
a) Sales department
b) Purchase department
c) Production department
Answer:- b
76. Bin card in maintained by
a) Purchase dept
b) Stores dept.
c) Production dept
Answer:- b
77. Abnormal loss should be transferred to
a) Abnormal loss account
b) Costing profit and loss a/c
c) Cash account
Answer:- b
78. FIFO method is suitable in times of ……..
a) Rising price
b) Falling price
c) Both a & b
Answer:- b
79. LIFO method is suitable in times of ……..
a) Rising price
b) Falling price
c) Both a & b
Answer:- a
80. Re – order level = maximum consumption * …………….
a) Minimum re order period
b) Maximum re – order period
c) Minimum consumption
Answer:- b
