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.
91. The value of benefit sacrificed in favor of an alternative course of action as known as
a) Variable
b) Fixed cost
c) Opportunity cost
Answer:- c
92. ………… is a unit of quantity in terms of which cost is ascertained.
a) Cost centre
b) Cost unit
c) profit centre
Answer:- b
93. Carriage outward is an example of …………………. Overhead
a) Production
b) Office
c) Distribution
Answer:- c
94. Eoq is calculated an ………………………..
a)
b)
c)
Answer:- a
95. Carrying costs are otherwise called
a) Ordering costs
b) Holding costs
c) out – of stock cost
Answer:- b
96. ………………… is a complete list of all materials component required for a job
a) Purchase requisition
b) Bill of materials
c) Purchase order
Answer:- b
97. Surprise physical checking is a feature of
a) Perpetual inventory system
b) ABC analysis
c) Imprested system
Answer:- a
98. Minimum level + consumption during the lead time is called ………
a) Re – order level
b) EOQ
c) Maximum stock level
Answer:- a
99. If the minimum stock level is 3000 units and re order quantity are 2000 units what is the average stock level
a) 5000
b) 4000
c) 3000
Answer:- b
100. Which of the following is not correct for bin card?
a) Records quantity only
b) Keep inside the store
c) Record value of issue
Answer:- c
