Cost Accounting MCQ ( Best 200+ )

by Mr. DJ

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.

Cost Accounting MCQ

61. Direct expense are also called ……………… expenses
a) Semi-variable
b) Chargeable
c) Fixed

Answer:- b
62. Operating costing is applicable to
a) Transport
b) Hospitals
c) Electricity

Answer:- a
63. Rent on own building is a ………………..
a) Sunk cost
b) Imputed cost
c) Opportunity cost

Answer:- b
64. When material prices fluctuate widely the method of pricing that gives a best result in
a) Simple average
b) Weighted average

Answer:- b
65. Which of the following is considered to be a normal loss of material
a) Loss due to accident
b) Loss due to breaking of bulk material
c) Loss due to careless handling

Answer:- b
66. Store keeper should initiate a purchase requisition when stock reacher
a) Minimum level
b) Maximum level
c) Re – order level

Answer:- c
67. Goods received note is prepared by ……………………..
a) Goods received clerk
b) Purchase manager
c) Store keeper

Answer:- c
68. …………. Is a discount allowed to the bulk purchase
a) Trade discount
b) Cash discount
c) Bad debt

Answer:- a
69. Buffer stock of material means ………………………..
a) Maximum stock of material
b) Minimum stock of material
c) Average stock of material

Answer:- b
70. A written request to a supplier for specified goods at an agreed rate
a) Purchase order
b) Purchase requisition
c) Receiving report

Answer:- a

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