This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Manufacturers of components of television adopt A) Process costing. B) Job costing. C) Batch costing. D) Contract costing. Show Answer Correct Answer: C) Batch costing. 2. What is the total labour cost for Job 123? A) RM 700.00. B) RM 900.00. C) RM 800.00. D) RM 600.00. Show Answer Correct Answer: D) RM 600.00. 3. Direct costs are those which A) Can be accurately traced to a product. B) Are significant in the production process. C) Are incurred in a specific period. D) Include only purchase of materials. Show Answer Correct Answer: A) Can be accurately traced to a product. 4. ..... method of costing is used in hospitals A) Operating costing. B) Job costing. C) Unit costing. D) Contract costing. Show Answer Correct Answer: A) Operating costing. 5. Cost that cannot be changed by any present and future decision, therefore irrelevant cost. A) Relevant Cost. B) Variable Cost. C) Sunk Cost. D) Fixed Cost. Show Answer Correct Answer: C) Sunk Cost. 6. Which of the following is a characteristic of financial accounting? A) Not mandatory. B) Must follow GAAP. C) Emphasis on relevance of data, rather than precision. D) Both A and B. Show Answer Correct Answer: C) Emphasis on relevance of data, rather than precision. 7. What is the hourly cost of Siti Aafiyah's work to Al-Ghazi & Co.? A) RM 313.33. B) RM 113.33. C) RM 331.33. D) RM 133.33. Show Answer Correct Answer: D) RM 133.33. 8. The method of costing applied in special ship building is A) Batch costing. B) Job costing. C) Process costing. D) None of the above. Show Answer Correct Answer: B) Job costing. 9. The term 'Sunk cost' refers to ..... A) Past cost that are now irrevocable. B) Cost that are directly influenced by unit manager. C) Cost that should be incurred in a particular production process. D) Benefits lost from rejecting the next best alternative. Show Answer Correct Answer: A) Past cost that are now irrevocable. 10. When the actual loss is more than the estimated loss, the difference between the two is considered to be ..... A) Normal loss. B) Abnormal loss. C) Abnormal gain. D) Normal gain. Show Answer Correct Answer: B) Abnormal loss. 11. Warehousing cost is an item of A) Administrative overhead. B) Work overhead. C) Distribution overhead. D) Material cost. Show Answer Correct Answer: C) Distribution overhead. 12. In process account, normal wastage is written on the: A) Debit side. B) Credit side. C) Both sides. D) None of the above. Show Answer Correct Answer: B) Credit side. 13. Overheads are also known as ..... cost. A) Sunk. B) Prime. C) Direct. D) Indirect. Show Answer Correct Answer: D) Indirect. 14. Fixed overhead costs include: A) Indirect materials. B) Energy costs. C) The cost of sales commissions. D) Property taxes paid on plant facilities. Show Answer Correct Answer: D) Property taxes paid on plant facilities. 15. The following items can be categorized as fixed cost, EXCEPT ..... A) Insurance. B) Electricity. C) Rental of building. D) Depreciation. Show Answer Correct Answer: B) Electricity. 16. On increase or decrease of one unit in the volume of production, the variation in total cost is called ..... cost A) Absorption. B) Fixed. C) Variable. D) Marginal. Show Answer Correct Answer: D) Marginal. 17. Time wages are paid on the basis of A) Standard time. B) Time saved. C) Output produced. D) Actual Time. Show Answer Correct Answer: D) Actual Time. 18. Which of the following statements regarding techniques of inventory control are correct? A) Establishment of inventory sales. B) Fixation of profit with high return. C) Establishment of inventory budgets. D) Fixation of selling price with good profit. Show Answer Correct Answer: C) Establishment of inventory budgets. 19. Financial accounting provides a historical perspective, whereas management accounting emphasizes ..... A) A current perspective. B) Past transactions. C) Reports to shareholders. D) The future. Show Answer Correct Answer: D) The future. 20. "Standard Overhead" cost is more than "Overhead Allocation" is called. A) Under budgeted. B) Over estimation of costs. C) Over allocated overhead. D) Under allocated overhead. Show Answer Correct Answer: D) Under allocated overhead. 21. Which of the following is a variable cost in an insurance company? A) Office space rental fee. B) Sales commissions. C) Property taxes. D) Salary of the company president. Show Answer Correct Answer: B) Sales commissions. 22. ..... labour cost is the remuneration paid to the employees who are directly engaged in the manufacturing operations A) Indirect. B) Direct. C) Abnormal. D) Normal. Show Answer Correct Answer: B) Direct. 23. Can we plan, control and reduce cost with cost accounting A) Yes. B) Not sure. C) May be. D) No. Show Answer Correct Answer: A) Yes. 24. Loss which is unavoidable on account of the nature of the material is called ..... A) Uncontrolled. B) Normal. C) Abnormal. D) None of these. Show Answer Correct Answer: B) Normal. 25. Effective planning of fixed overhead costs includes all of the following EXCEPT: A) Redesigning products to use fewer resources. B) Eliminating nonvalue-adding costs. C) Choosing the appropriate level of capacity. D) Redesigning the plant layout for more efficient processing. Show Answer Correct Answer: C) Choosing the appropriate level of capacity. 26. Direct labor + Factory Overhead A) Conversion Cost. B) Prime Cost. C) Manufacturing Cost. D) None of the answer. Show Answer Correct Answer: A) Conversion Cost. 27. An over allocated direct cost is also called EXCEPT: A) Over budgeted direct cost. B) Over assigned direct cost. C) Over applied direct cost. D) Over absorbed direct cost. Show Answer Correct Answer: A) Over budgeted direct cost. 28. Beginning finished goods inventory + Cost of Goods Manufactured-Ending finished goods inventory = A) Cost of Good Sold. B) Work in Process, Beg. C) Work in Process End. D) Purchases. Show Answer Correct Answer: A) Cost of Good Sold. 29. What direct labour cost would be traced to client 457 if Siti Aafiyah works 1 week (5 days) to prepare client 457's financial statements? A) RM 5, 333.33. B) RM 3, 533.33. C) RM 3, 333.33. D) RM 3, 363.33. Show Answer Correct Answer: A) RM 5, 333.33. 30. The information provided by financial statements is ..... in nature. A) Standard. B) Marginal. C) Historical. D) Uniform. Show Answer Correct Answer: C) Historical. 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