This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is the difference between actual or expected sales and sales at the break-even point A) Margin of Sales. B) Margin of Sales Mix. C) Margin of Selling Price. D) Margin of Safety. Show Answer Correct Answer: D) Margin of Safety. 2. Hesketh is a stationary business. Classify the following elements:Insurance of office computers A) Material. B) Labour. C) Overhead. D) None of above. Show Answer Correct Answer: C) Overhead. 3. An example of fixed cost is ..... A) Direct material cost. B) Chargeable expenses. C) Depreciation of machinery. D) Works manager's r salary. Show Answer Correct Answer: D) Works manager's r salary. 4. Compute the product cost using marginal costing if the budgeted costs are as follows:Direct material used Rm30Direct labour Rm15Direct expenses Rm8Fixed manufacturing overhead Rm2.50Variable manufacturing overhead Rm13 A) Rm60.50. B) Rm68.50. C) Rm66.00. D) Rm55.50. Show Answer Correct Answer: C) Rm66.00. 5. The following parties are considered as internal parties of cost accounting information, EXCEPT: A) Shareholders. B) Supplier. C) Chief Executive Officer (CEO). D) Manager of the company. Show Answer Correct Answer: B) Supplier. 6. -Which one of the following is incorrect? A) Total stock level. B) Minimum stock level. C) Maximum stock level. D) Average stock level. Show Answer Correct Answer: A) Total stock level. 7. The method of costing used to ascertain the cost of a batch is called A) Batch costing. B) Contract costing. C) Process costing. D) Process costing. Show Answer Correct Answer: A) Batch costing. 8. Contract price is the cost of work done plus a percentage in case of A) Cost plus contract. B) Fixed price contract. C) Fluctuating contract. D) Target costing. Show Answer Correct Answer: A) Cost plus contract. 9. What is the Al-Ghazi's indirect cost allocate rate? A) RM 40.00. B) RM 20.00. C) RM 10.00. D) RM 30.00. Show Answer Correct Answer: D) RM 30.00. 10. The Ascertainment of costs after they have been incurred is known as A) Uniform costing. B) Absorption costing. C) Direct costing. D) Historical costing. Show Answer Correct Answer: D) Historical costing. 11. ..... refers to the part payment made by the contractee to the contractor on the basis of certificate issued by the architect to the contractee. A) Work in progress. B) Notional profit. C) Work certified. D) Progress payment. Show Answer Correct Answer: D) Progress payment. 12. ..... system of costing is suitable for toy making A) Batch costing. B) Process costing. C) Operating costing. D) Job costing. Show Answer Correct Answer: A) Batch costing. 13. The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the: A) Balance Sheet. B) Income Statement. C) Statement of Cash Flows. D) None of These. Show Answer Correct Answer: B) Income Statement. 14. Work in process inventory increased by P110, 000 during 2030. Cost of goods manufactured was P1, 540, 000. Total manufacturing costs incurred in 2030 are: A) P1, 441, 000. B) P1, 650, 000. C) P1, 878, 500. D) P1, 937, 000. Show Answer Correct Answer: B) P1, 650, 000. 15. An under allocated indirect cost can also be called as: A) Absorbed indirect cost. B) Under applied indirect cost. C) Under absorbed indirect cost. D) Both B & C. Show Answer Correct Answer: D) Both B & C. 16. Which among the following is not a part of product cost? A) Factory overhead. B) Direct labour. C) Selling overhead. D) Direct materials. Show Answer Correct Answer: C) Selling overhead. 17. The relevant range is: A) The range of activity in which variable costs will be curvilinear. B) The range of activity in which fixed costs will be curvilinear. C) The range over which the company expects to operate during a year. D) Usually from zero to 100% of operating capacity. Show Answer Correct Answer: C) The range over which the company expects to operate during a year. 18. If minimum level is 3000 units and ROQ is 2000 units, what is average stock level A) 7000 units. B) 4000 units. C) 2500 units. D) 5000 units. Show Answer Correct Answer: B) 4000 units. 19. Managers need useful information in order to make decisions, to plan and to control the company. Therefore, there are three main components to consider. Which of the following is not one of those options? A) Planning. B) Organising. C) Decision Making. D) Control. Show Answer Correct Answer: B) Organising. 20. The total of all direct expenses is known as ..... A) Total cost. B) Prime cost. C) Overhead. D) Work cost.. Show Answer Correct Answer: B) Prime cost. 21. Job costing is used in A) Brick making. B) Chemical manufacturing. C) Printing press. D) Cement production. Show Answer Correct Answer: C) Printing press. 22. Which statement is true about the treatment of abnormal loss? A) Value is credited to process loss a/c. B) Scrap value is credited to process loss a/c. C) Balance in abnormal loss a/c is transferred to costing profit & loss a/c. D) None of these. Show Answer Correct Answer: C) Balance in abnormal loss a/c is transferred to costing profit & loss a/c. 23. Telephone expense is A) Fixed. B) Variable. C) Semi-variable. D) None of the above. Show Answer Correct Answer: C) Semi-variable. 24. The total of the materials subsidiary ledger inventory cards must be equal to the amount in the following account: A) Materials Inventory. B) Purchases of Raw Materials. C) Cost of Goods Sold. D) Work-in-process Inventory. Show Answer Correct Answer: A) Materials Inventory. 25. Small tools purchased are A) Charged to overhead expenses at the time of purchase. B) Charged to machinery account. C) Charged to jobs during the period of purchase. D) Charged to costing Profit and Loss account. Show Answer Correct Answer: A) Charged to overhead expenses at the time of purchase. 26. In job costing, each job is the ..... A) Cost centre. B) Cost unit. C) Profit centre. D) None of these. Show Answer Correct Answer: B) Cost unit. 27. Difference between attendance time and job time is A) Over time. B) Production time. C) Idle time. D) Job time. Show Answer Correct Answer: C) Idle time. 28. A total of all the direct costs is known as A) Prime cost. B) Cost of production. C) Works cost. D) Cost of sales. Show Answer Correct Answer: A) Prime cost. 29. A company manufactured 500, 000 units of product at a cost of P2, 500, 000. They sold 400, 000 units for P10 each. What is the gross profit? A) P5, 000, 000. B) P4, 000, 000. C) P2, 500, 000. D) P2, 000, 000. Show Answer Correct Answer: D) P2, 000, 000. 30. The Information obtained from cost accounts is A) Total cost. B) Per unit cost. C) Total & Per unit Cost. D) All of above. Show Answer Correct Answer: D) All of above. ← PreviousNext →Related QuizzesIntroduction QuizzesAccounting QuizzesIntroduction To Cost Accounting Quiz 1Introduction To Cost Accounting Quiz 2Introduction To Cost Accounting Quiz 3Introduction To Cost Accounting Quiz 4Introduction To Cost Accounting Quiz 5Introduction To Cost Accounting Quiz 6Introduction To Cost Accounting Quiz 7Introduction To Cost Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books