This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is the process of monitoring the company's operations A) Controlling. B) Planning. C) Motivating. D) Supervising. Show Answer Correct Answer: A) Controlling. 2. Job order costing would be most appropriate for which of the following industries? A) Paper production. B) Oil refining. C) Custom Home building. D) Food Processing. Show Answer Correct Answer: C) Custom Home building. 3. If normal output of A process is 1000 units and abnormal wastage is 20 units then the actual output of the process will be A) 980 units. B) 1020 units. C) 1000 units. D) 800 units. Show Answer Correct Answer: A) 980 units. 4. Work done on contract and approved by architect or engineer of the contractee is called A) Work in progress. B) Work uncertified. C) Work certified. D) None of these. Show Answer Correct Answer: C) Work certified. 5. Which of the following would not be an example of a value-added activity? A) Timely delivery of products. B) Excellent customer service. C) Offering the customer a variety of products. D) Storage of finished products. Show Answer Correct Answer: D) Storage of finished products. 6. Financial accounting provides the primary source of information for: A) Decision making in the finishing department. B) Planning next year's operating budget. C) Preparing the income statement for shareholders. D) Improving customer service. Show Answer Correct Answer: C) Preparing the income statement for shareholders. 7. The principle types of inventories are raw materials and, ..... and finished goods A) Stored goods. B) Goods-in-progress. C) Processed materials. D) Goods for dispatch. Show Answer Correct Answer: B) Goods-in-progress. 8. Standard time is 8 hours, actual time taken is 6 hours & time rate is Rs.2 per hour. The total wages under Halsey plan will be A) Rs.16. B) Rs.18. C) Rs.14. D) None of above. Show Answer Correct Answer: C) Rs.14. 9. Costs that do not change from month to month, you are obligated to pay them regardless of income variation A) Variable expenses. B) Disposable income. C) Fixed expenses. D) Wealth. Show Answer Correct Answer: C) Fixed expenses. 10. The Gummy family budget $ 35 a month for a vacation. How much money will they have saved up if they continue to save this amount for 15 months? A) $ 225. B) $ 50. C) $ 525. D) $ 550. Show Answer Correct Answer: C) $ 525. 11. Under Emerson's Efficiency Plan, no bonus is payable when efficiency is upto A) 50%. B) 66 1/3 %. C) 83 1/3%. D) None of these. Show Answer Correct Answer: B) 66 1/3 %. 12. This process involves the conversion of direct (raw) materials, direct labor, and factory overhead into finished goods. A) Merchandising Process. B) Cost Accounting Process. C) Manufacturing Process. D) Trading Process. Show Answer Correct Answer: C) Manufacturing Process. 13. Materials issued are priced at the latest purchase in ..... A) NIFO. B) FIFO. C) LIFO. D) None of these. Show Answer Correct Answer: C) LIFO. 14. J & L Company incurred the following costs:Direct materials P215, 000Conversion costs 435, 000Manufacturing overhead 190, 000Selling and Admin expenses 185, 000What is J & L prime costs? A) P460, 000. B) P405, 000. C) P410, 000. D) P375, 000. Show Answer Correct Answer: A) P460, 000. 15. Which accounting provide various tools and techniques in order to assist management in creation of policy and making decisions. A) Financial accounting. B) Cost accounting. C) Management accounting. D) None of above. Show Answer Correct Answer: C) Management accounting. 16. Which is a measure to calculate when old employees leave and new employees enter the service of the concern A) Labour Turnover. B) Sales Turnover. C) Employees Turnover. D) Employers Turnover. Show Answer Correct Answer: A) Labour Turnover. 17. ..... is an important point to be determined in industries where batch costing is employed. A) Re-order quantity. B) EOQ. C) EBQ. D) Batch. Show Answer Correct Answer: C) EBQ. 18. Following are the examples of unit measurement in cost accounting, EXCEPT: A) Kilowatt hours. B) Labour hours. C) Machine hours. D) Monetary value(RM). Show Answer Correct Answer: D) Monetary value(RM). 19. ..... is an example of fixed cost A) Chargeable expenses. B) Salary of manager. C) Direct material cost. D) Telephone expenses. Show Answer Correct Answer: B) Salary of manager. 20. A document which contains information about the materials of specific product, in specific department comes under: A) Selling method. B) Costing method. C) Material acquisition method. D) None of the above. Show Answer Correct Answer: C) Material acquisition method. 21. In process costing, costs are accumulated by ..... A) Batch. B) Process. C) Job. D) Production order. Show Answer Correct Answer: B) Process. 22. Normal cost of normal output of 80 units is rs.400 then value of abnormal wastage of 5 units will be: A) Rs. 5. B) Rs. 25. C) Rs. 100. D) Rs. 400. Show Answer Correct Answer: B) Rs. 25. 23. Which of the following is a fixed cost for an automobile manufacturing plant? A) Electricity used by assembly-line machines. B) Administrative salaries. C) Windows for each car produced. D) Sales commissions. Show Answer Correct Answer: B) Administrative salaries. 24. Variable overhead costs include A) The plant manager's salary. B) Plant-leasing costs. C) Depreciation on plant equipment. D) Machine maintenance. Show Answer Correct Answer: D) Machine maintenance. 25. A worker is paid Rs. 0.50 per unit and he produces 18 units in 7 hours. Keeping in view the straight-piece rate system, the total wages of the worker would be? A) 7 * 0.50 =3.5. B) 18 * 7 * 0.50 = 63. C) 18 * 7 =126. D) 18 * 0.50 = 9. Show Answer Correct Answer: D) 18 * 0.50 = 9. 26. Notional profit is computed as ..... A) Work in progress-cost of work to date. B) Work certified + Work uncertified. C) Work in progress-Work uncertified. D) Contract price-estimated total cost. Show Answer Correct Answer: A) Work in progress-cost of work to date. 27. Which of the following statements is not true about job costing? A) Job work is labour intensive. B) Production always against customers' orders. C) Job is of equal or longer duration compared to contracts. D) Cost of each job ascertained separately. Show Answer Correct Answer: C) Job is of equal or longer duration compared to contracts. 28. Differential cost is the difference in A) Fixed costs for two levels of output. B) Variable costs for two levels of production. C) Total costs for two levels of output. D) Fixed cost and revenue. Show Answer Correct Answer: C) Total costs for two levels of output. 29. The Drive 'n Go Motors sells used cars. Inventory is continuously updated as vehicles are purchased and sold. What type of Inventory control system does Drive 'n Go use? A) Profitable Inventory. B) Perpetual Inventory. C) Product Inventroy. D) Periodic Inventory. Show Answer Correct Answer: B) Perpetual Inventory. 30. Loss on incomplete contract is transferred to ..... account. A) Work in progress. B) Contract. C) Profit and loss. D) Contractee's. Show Answer Correct Answer: C) Profit and loss. ← 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