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.
141. In cost sheet work –in – progress inventory is treated as
a) FIFO
b) LIFO
c) Factory cost
Answer:- c
142. In cost sheet finished stock is taken before ……………
a) Cost of goods sold
b) Prime cost
c) Cost of production
Answer:- a
143. Valuation of stock in financial accounts and cost accounts result …………………… in profits
a) Difference
b) Same
c) Equal
Answer:- a
144. Rent receivable is …………………………
a) Purely financial income
b) Purely financial expense
c) Purely costing income
Answer:- a
145. Transfer fees received is ………………………
a) Purely financial income
b) Purely financial expense
c) Purely costing income
Answer:- a
146. Interest received on bank deposit is ………………………..
a) Purely costing income
b) Purely financial income
c) Purely financial expense
Answer:- b
147. Good will written off are shown only in ……………………..
a) Cost accounts
b) Financial accounts
c) Process accounts
Answer:- b
148. Writing off patents are shown only in ………………………..
a) Cost accounts
b) Financial accounts
c) Process accounts
Answer:- b
149. Penalties and fines are ……………………………….
a) Purely financial income
b) Purely financial charges
c) Purely costing items
Answer:- b
150. Adopting …………… accounts reconciliation of accounts can be avoided
a) Integrated accounts
b) Cost accounts
c) Financial accounts
Answer:- a
