Cost Accounting Multiple Choice Questions ( MCQS) Page-4. The following Cost Accounting Questions from different Past Papers etc, PPSC Past Papers, Fpsc Pass Papers, NTS and also from MCQS Bank. These Questions are helpful for the preparation of Written test for the Posts of Accountant, Cost Accountant, Auditor and any for any Accounts Related Jobs Tests.
Multiple Choice Questions on Cost Accounting
61. Which of the following statement is TRUE about the relevant cost?
a. It is a sunk cost
b. It is an opportunity cost
c. It do not affect the decision making process
d. All costs are relevant
62. In decision making all costs already incurred in past should always be:
c. Partially ignored
d. Partially considered
63. Which of the following statement is TRUE about historical cost?
a. It is always relevant to decision making
b. It is always irrelevant to decision making
c. It is always an opportunity cost
d. It is always realizable value
64. In cost accounting, unavoidable loss is charged to which of the following?
a. Factory over head control account
b. Work in process control account
c. Marketing overhead control account
d. Administration overhead control account
65. Merrick Differential Piece Rate Plan based on _____________piece rates is fixed.
66. Which of the given is (are) the method(s) of measurement of Labor Turnover?
a. Separation method
b. Flux method
c. Replacement method
d. All of the given options
67. What will be the impact of normal loss on the overall per unit cost ?
a. Per unit cost will increase
b. Per unit cost will decrease
c. Per unit cost remain unchanged
d. Normal loss has no relation to unit cost
68. Which of the given units can never become part of first department of Cost of Production Report?
a. Units received from preceding department
b. Units transferred to subsequent department
c. Lost units
d. Units still in process
69. Details of the process for the last period are as follows:
Put into process 5,000 kg
Materials ` 2,500
Production overheads 200% of labor
Normal losses are 10% of input in the process. The output for the period was 4,200 Kg from the
process. There was no opening and closing Work- in- process. What were the units of abnormal
a. 500 units
b. 300 units
c. 200 units
d. 100 units
70. ABC Company makes a single product which it sells for ` 20 per unit. Fixed costs are ` 75,000 per
month and product has a profit/volume ratio of 40%. In that period actual sales were ` 225,000.
Required: Calculate ABC Company Break Even point in `
a. 187, 500
b. 562, 500
d. None of the given options
71. All of the following are the features of fixed costs EXCEPT:
a. Although fixed within a relevant range of activity level but are relevant to a decision making
when it is avoidable.
b. Although fixed within a relevant range of activity level but are relevant to a decision making
when it is incremental.
c. Generally it is irrelevant
d. It is relevant to decision making under any circumstances
72. A typical factory overhead cost is:
b. Internal audit
c. Compensation of plant manager
73. An average cost is also known as:
a. Variable cost
b. Unit cost
c. Total cost
d. Fixed cost
74. Period costs are:
a. Expensed when the product is sold
b. Included in the cost of goods sold
c. Related to specific period
d. Not expensed
75. While calculating the EOQ, number of orders is calculated by:
a. Dividing required unit by ordered quantity
b. Multiplying the required units with ordered quantity
c. Multiplying the ordered quantity with cost per order
d. Multiplying the required units with cost per order
76. Which of the following best describe piece rate system?
a. The increased volume of production results in decreased cost of production
b. The increased volume of production in minimum time
c. Establishment of fair standard rates
d. Higher output is a result of efficient management
77. The term Cost apportionment is referred to:
a. The costs that can not be identified with specific cost centers.
b. The total cost of factory overhead needs to be distributed among specific cost centers but
must be divided among the concerned department/cost centers.
c. The total cost of factory overhead needs to be distributed among specific cost centers.
d. None of the given options
78. Which of the following loss is not included as part of the cost of transferred or finished goods, but rather treated as a period cost?
a. Operating loss
b. Abnormal loss
c. Normal loss
d. Non-operating loss
79. Hyde Park Company produces sprockets that are used in wheels. Each sprocket sells for ` 50 and
the company sells approximately 400,000 sprockets each year. Unit cost data for the year follows:
Direct material ` 15
Direct labor ` 10
Required: Identify the unit cost of sprockets under direct costing
80. When production is equal to sales, which of the following is TRUE?
a. No change occurs to inventories for either use absorption costing or variable costing methods
b. The use of absorption costing produces a higher net income than the use of variable costing
c. The use of absorption costing produces a lower net income than the use of variable costing
d. The use of absorption costing causes inventory value to increase more than they would though
the use of variable costing
61 b 62 a 63 b
64 a 65 b 66 d 67 a 68 a 69 b 70 d
71 d 72 c 73 b 74 c 75 a 76 b 77 c
78 b 79 d 80 a