This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following items is not included in (charged to) factory overhead? A) Factory depreciation and supplies. B) Costs of service departments. C) Costs of marketing departments. D) Costs of maintenance departments. Show Answer Correct Answer: C) Costs of marketing departments. 2. "Accounting information must be presented to the users in time to fulfil their decision making needs" . This statement is referring to which characteristic of useful managerial accounting information? A) Cost effectiveness. B) Timeliness. C) Accuracy. D) Relevance. Show Answer Correct Answer: B) Timeliness. 3. Which ONE is PRODUCTION OVERHEAD Cost? A) Office Utilities. B) Salesman Commission. C) Indirect labour. D) Administrative salary. Show Answer Correct Answer: C) Indirect labour. 4. The main purpose of cost Accounting is to ..... A) Help in inventory. B) Provide information to management for decision making. C) Aid in the fixation of Selling price. D) Maximize profits. Show Answer Correct Answer: B) Provide information to management for decision making. 5. ..... is in relation to which cost may be ascertained or expressed A) Cost. B) Cost Unit. C) Cost Object. D) Cost Center. Show Answer Correct Answer: B) Cost Unit. 6. Which of the following is not an avoidable cause of labour turnover: A) Dissatisfaction with Job. B) Lack of training facilities. C) Low wages and allowances. D) Disability, making a worker unfit for work. Show Answer Correct Answer: D) Disability, making a worker unfit for work. 7. Total direct labour cost is RM56, 450. Total direct labour hour is 480 hours. What is the direct cost per unit? A) RM 117.54. B) RM 117.60. C) RM 177.54. D) RM 711.54. Show Answer Correct Answer: B) RM 117.60. 8. An example of prime cost is: A) Supervisory cost. B) Insurance on purchases. C) Depreciation of office equipment. D) Lighting and power. Show Answer Correct Answer: B) Insurance on purchases. 9. ..... is the wide term A) Costing. B) Cost Accountancy. C) Cost. D) Cost Accounting. Show Answer Correct Answer: B) Cost Accountancy. 10. ..... is the smallest segment of activity or area or responsibility for which costs are accumulated. A) Non of these. B) Cost object. C) Cost driver. D) Cost center. Show Answer Correct Answer: D) Cost center. 11. Expired costs are called A) Costs. B) Profit. C) Fixed. D) Expenses. Show Answer Correct Answer: D) Expenses. 12. The wages of the factory janitorial staff should be classified as: A) Prime cost. B) Period cost. C) Direct labor cost. D) Factory overhead cost. Show Answer Correct Answer: D) Factory overhead cost. 13. Which of the following costs is recorded on the job cost sheet? A) Direct materials cost. B) Direct labor cost. C) Manufacturing overhead cost. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Break-down of machinery, strike, lock-outs come under ..... idle time A) Idle. B) Abnormal. C) Not idle. D) Normal. Show Answer Correct Answer: B) Abnormal. 15. Under Merrick's Differential piece rate system, if the efficiency of a worker is more than 83% but up to 100%, then the applicable piece rate is ..... A) 120 % of ordinary piece rate. B) 105% of ordinary piece rate. C) Ordinary piece rate. D) 110 % of ordinary piece rate. Show Answer Correct Answer: D) 110 % of ordinary piece rate. 16. What is a cost unit? A) Cost of a product or services. B) A quantitative units of product or service to which costs can be related. C) Expenditure. D) Cost per unit. Show Answer Correct Answer: B) A quantitative units of product or service to which costs can be related. 17. Derek Paulate worked 46 hours in one week at a rate of P45 an hour. He is paid one and a half times the regular rate for hours worked in excess of 40. What is the gross earnings of Derek Paulate? A) P2, 070. B) P2, 340. C) P2, 205. D) P1, 800. Show Answer Correct Answer: C) P2, 205. 18. Compute the conttribution margin for David 18 Factory if the following data is given:Variable Selling and distribution 24 500Cost of good sold (COGS)RM197 500Sales 15 000 unitSales price Rm18 A) Rm97 500. B) Rm48 000. C) Rm48 500. D) Rm97 000. Show Answer Correct Answer: B) Rm48 000. 19. Litres were used to ascertain cost of ..... A) Cooking oil. B) Flour. C) Sugar. D) Petrol. Show Answer Correct Answer: D) Petrol. 20. Total cost of a product:Rs. 10, 000 Profit:25% on Selling Price Profit is: A) Rs. 3, 000. B) Rs. 2, 000. C) Rs. 3, 333. D) Rs. 2, 500. Show Answer Correct Answer: C) Rs. 3, 333. 21. In electricity supply company uses ..... as cost unit. A) Kilo watt hour. B) Per household. C) Voltage. D) None of above. Show Answer Correct Answer: A) Kilo watt hour. 22. A persons who are directly involved in the production of a good. A) Indirect labour. B) Indirect material. C) Direct labour. D) Direct material. Show Answer Correct Answer: C) Direct labour. 23. The nature of financial accounting is: A) Historical. B) Social. C) Forward-looking. D) Analytical. Show Answer Correct Answer: A) Historical. 24. Which of the following document is used for issuing materials to different production department? A) Material requisition. B) Purchase requisition. C) Purchase order. D) None of above. Show Answer Correct Answer: A) Material requisition. 25. Which is true about process costing? A) Production is continuous. B) Each output is customer specific. C) Production takes long duration. D) Production is done in lots/ batches. Show Answer Correct Answer: A) Production is continuous. 26. The number of units in the sales budget and the production budget may differ because of a change in: A) Sales returns and allowances. B) Direct material inventory levels. C) Overhead charges. D) Finished goods inventory levels. Show Answer Correct Answer: D) Finished goods inventory levels. 27. ..... is location, person or item of equipment for which cost may be ascertained. A) Costing. B) Cost Object. C) Cost Unit. D) Cost center. Show Answer Correct Answer: D) Cost center. 28. Interest on capital invested is an example of ..... A) Ordering cost. B) Carrying cost. C) Manufacturing cost. D) Setting up cost. Show Answer Correct Answer: B) Carrying cost. 29. A variable cost in total A) Increases as output increases and decreases as output decreases. B) Increases as output increases and/or decreases. C) Remains constant no matter the level of output. D) Increases as output decreases and decreases as output increases. Show Answer Correct Answer: A) Increases as output increases and decreases as output decreases. 30. As volume increases, average cost per unit A) Decrease. B) Remain constant. C) Increase. D) Increases in proportion to the change in volume. Show Answer Correct Answer: A) Decrease. ← 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