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.
51. ………………. May be a location, a person, or an item of equipment or group of there
a) Cost centre
b) Cost unit
c) Profit centre
Answer:- a
52. …………………. Is defined on the guidance and regulation by executive action of cost operating and under taking
a. Cost reduction
b. Cost control
c. Cost estimation
Answer:- b
53………. is the cost incurred in the part has no effect on future decision making
a) Sunk cost
b) Historical cost
c) Imputed cost
Answer:- a
54. Machine hour rate in the cost of running a machine
a) Per hour
b) Per day
c) Per work
Answer:- a
55. Direct expense are also called ……………………. Expenses.
a) Variable
b) Chargeable
c) Fixed
Answer:- b
56. Cost of production is also called ………………..if there is no selling and distribution expense
a) Cost of sales
b) Office cost
c) Factory cost
Answer:- b
57. If cost of sales exceeds sales it will be
a) Profit
b) Loss
c) Gain
Answer:- b
58. Statement prepared to show the different elements of cost
a) Time sheet
b) Cost sheet
c) Work sheet
Answer:- b
59. Variable cost increases
a) As in the sales goes up
b) As the production goes up
c) As the fixed expenses goes up
Answer:- b
60. On the basis of ……………… cost can be classified into fixed and variable.
a) Behavior
b) Element
c) Function
Answer:- a
