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.
31. Aggregate of prime cost and factory overhead is
a) Work on cost
b) Work cost
c) Cost of production
Answer:- b
32. Salary paid to factory manager is an item of
a) Prime cost
b) Factory overhead
c) Selling overhead
Answer:- b
33. Cost incurred to convert raw material into finished good
a) Direct cost
b) Conversion cost
c) Indirect cost
Answer:- b
34. Sunk cost are
a) Fixed in nature
b) Not relevant to present decision
c) Variable in nature
Answer:- b
35. All cost other than direct expense are known as
a) Indirect material cost
b) Indirect labour cost
c) Indirect expenses
Answer:- c
36. The most important element of cost is
a) Material
b) Labour
c) Over head
Answer:- a
37. According to which of the following methods of material pricing are close to current economic values
a) LIFO
b) FIFO
c) HIFO
Answer:- a
38. Directors remuneration is treated as
a) Factory overhead
b) Selling and distribution over head
c) Administration over head
Answer:- c
39. Packing cost is an item of
a) Production over head
b) Selling over head
c) Office over head
Answer:- b
40. Bad debts are treated as a part of
a) Purely financial income
b) Purely cost item
c) Purely financial expense
Answer:- c
