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.
161. Absorption of production overhead cost in unit – costs on marginal costs basis in unacceptable
a) As a cost control mechanism
b) as a decision making
c) For stock valuation in compliance with SSAP – 9
d) For profit measured in monthly management account
Answer:- c
162. Under ______________method, the costs of service departments are directly appointed to production departments
a) Direct re-distribution method
b) Step distribution method
c) Reciprocal service method
Answer:- c
163. Simultaneous equation method is a method of ___________method
d) Direct re-distribution method
e) Step distribution method
f) Reciprocal service method
Answer:- c
164. Repeated distribution method is a method of _____________method
a) Direct re-distribution method
b) Step distribution method
c) Reciprocal service method
Answer:- c
165. Trial and error method is a method of_______________________
a) Direct re-distribution method
b) Step distribution method
c) Reciprocal service method
Answer:- c
166. Under direct labor hour method overhead rate is arrived by dividing _________expenses by the aggregate of the direct labor hours
a) Overhead expenses
b) Variable expenses
c) Fixed expansion
Answer:- a
167. Machine hour rate is obtained by dividing the running expenses of a machine during a particular period by the__________
a) Total amount machine
b) Total of depreciation
c) Number of hours the machine expects to work
Answer:- c
168. Consumable stores is a _______________expense
a) Variable
b) Fixed
c) Semi variable
Answer:- a
169. Compensation to salesman is a _______ expenses
a) Semi variable
b) Variable
c) Fixed
Answer:- a
170. Factory power is a ______________expense
a) Fixed
b) Variable
c) Semi variable
Answer:- b
