Multiple Choice Questions on MCQ on Cost Accounting
11-Which one of the following is incorrect?
(A) Minimum stock level
(B) Total stock level
(C) Average stock level
(D) Maximum stock level
ANSWERS: (B) Total stock level
12-Scrap is a
(A) Residue of raw material
(B) Wastage of material
(C) Surplus material
(D) Abnormal loss of material
ANSWERS: (A) Residue of raw material
13-Time wages are paid on the basis of
(A) Standard time
(B) Time saved
(C) Output produced
(D) Actual Time
ANSWERS: (D) Actual Time
14-Difference between attendance time and job time is
(A) Job time
(B) Over time
(C) Idle time
(D) Production time
ANSWERS: (C) Idle time
15-Under Bedaux point premium system, the point obtained as ‘B’ represents
(A) No. of minutes taken for a job
(B) No. of hours taken for a job
(C) No. of units produced
(D) No. of workers required for a job
ANSWERS: (A) No. of minutes taken for a job
16-Which of the following is incorrect system of time keeping under mechanical method?
(A) Time keeping recording clocks
(B) Dial time records
(C) Bio-metric system
(D) Metal-disc method
ANSWERS: (D) Metal-disc method
17-Which of the following statements is/are incorrect?
(A) Pay roll is prepared to reveal gross wages and various deductions
(B) Piece wages are payment by results
(C) Idle time is spent by the workers on their jobs
(D) Labor turnover is due to poor working conditions of organizations
18-Which one of the following is not the objectives of Time-keeping?
(A) Ensure regularity of employees
(B) Useful for preparation of payroll
(C) Enforces displace among work force
(D) To take disciplinary action
ANSWERS: (D) To take disciplinary action
19-It is convenience, rather than principle, a particular expense is classified as direct or indirect expenditure is called as:
(A) Direct materials are treated as overhead
(B) Direct and indirect materials
(C) Direct wages
(D) Indirect wages
ANSWERS: (A) Direct materials are treated as overhead
20-Which of the following item is not considered as direct expenses?
(A) Architects’ surveyor’s and other consultants fees
(B) Carriage in wards, and freight cost
(C) Packing materials are packages required for a particular job
(D) Travelling expenses for a sales person
ANSWERS: (D) Travelling expenses for a sales person
