This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sales-Php100, 000, VC-Php80, 000, Fixed Cost-Php10, 000. How much is Operating Leverage A) 0.5. B) 1. C) 2. D) 2.5. Show Answer Correct Answer: C) 2. 2. Replacement price method is A) The old market price of material is charged on the issues. B) The current purchase price of material is charged on the issues. C) The cost price of the material is charged on the issues. D) The current market price of material is charged on the issues. Show Answer Correct Answer: D) The current market price of material is charged on the issues. 3. The purpose of financial accounting is to provide information for ..... A) Assessing the profitability and financial position of the firm. B) Fixing prices. C) Locating factors leading to wastages and losses. D) Cost control. Show Answer Correct Answer: A) Assessing the profitability and financial position of the firm. 4. The benefit given up when one alternative is chosen over another. A) Standard Cost. B) Differential Cost. C) Opportunity Cost. D) Standard Cost. Show Answer Correct Answer: C) Opportunity Cost. 5. ..... is used primarily for control of spare parts. A) Perpetual Inventory System. B) JIT Inventory System. C) ABC Analysis. D) VED Analysis. Show Answer Correct Answer: D) VED Analysis. 6. Which of the following statements is NOT true about contract costing? A) Requires long period for completion. B) Number of contracts undertaken at a time is limited. C) Work is done at the site of the customer. D) Indirect costs are higher as compared to job costing. Show Answer Correct Answer: D) Indirect costs are higher as compared to job costing. 7. According to CIMA, England, "the technique and process of ascertaining cost" is called A) Cost. B) Costing. C) Cost accountancy. D) Cost accounting. Show Answer Correct Answer: B) Costing. 8. Based on historical transaction data. A) Managerial Accounting. B) Job Order Costing. C) Financial Accounting. D) Cost Accounting. Show Answer Correct Answer: C) Financial Accounting. 9. Which of the following items is not included in factory overhead? A) Factory depreciation and supplies. B) Costs of Marketing departments. C) Costs of Maintenance departments. D) Costs of service departments. Show Answer Correct Answer: B) Costs of Marketing departments. 10. Merchandise Inventory is on the income statement as: A) A component in the calculation of Cost of Goods Sold. B) A current liability. C) A revenue item. D) A current asset. Show Answer Correct Answer: A) A component in the calculation of Cost of Goods Sold. 11. Materials issue are priced by dividing the total cost of material in stock by the total quantity of materials is called ..... method A) Simple average price. B) Weighted average price. C) Specific price. D) Standard price. Show Answer Correct Answer: B) Weighted average price. 12. Under which method both the number of workers left/discharged and the number of workers replaced during the period are considered A) Seperation. B) Flux. C) Replacement. D) Labour cost. Show Answer Correct Answer: B) Flux. 13. Calculate cost per machine hour for 3FSB. A) RM 10.00. B) RM 30.00. C) RM 40.00. D) RM 20.00. Show Answer Correct Answer: D) RM 20.00. 14. The transfering of work from a specific area of the company ( e.g. accounting, manufacturing) to an outside supplier, which can be done to a company that is located in the home country or anywhere else is called ..... A) Offshoring. B) Outsourcing. C) Globalization. D) None of above. Show Answer Correct Answer: B) Outsourcing. 15. Re-ordering level = Maximum consumption x ..... A) Normal usage. B) Maximum usage. C) Maximum re-order period. D) Average re-order period. Show Answer Correct Answer: C) Maximum re-order period. 16. Which of the following expenses is not operating expenses A) Salaries. B) Finance Expenses. C) Advertisement. D) Loss on sale of old furniture. Show Answer Correct Answer: D) Loss on sale of old furniture. 17. Factory overheads do not include the following: A) Salary of the factory manager. B) Depreciation on manufacturing equipment. C) Rent of the administrative department. D) Labour of wage workers who manufacture the goods. Show Answer Correct Answer: D) Labour of wage workers who manufacture the goods. 18. What does FIFO mean? A) Final Input Final Output. B) First In First Out. C) Fabrications Inward Fabrications Outward. D) Finished Stock in Finished stock out. Show Answer Correct Answer: B) First In First Out. 19. How much is the selling and administration cost for Client 457? A) RM 950.00. B) RM 970.00. C) RM 980.00. D) RM 990.00. Show Answer Correct Answer: C) RM 980.00. 20. Fancy packing is an example of ..... expenses. A) Factory. B) Selling. C) Administrative. D) Distribution. Show Answer Correct Answer: B) Selling. 21. If an overhead cost of operating a machine is RM1, 000, 000 for 200, 000 hours, then the cost allocation rate will be: A) RM 3.00 per machine hour. B) RM 5.00 per machine hour. C) RM 4.00 per machine hour. D) RM 6.00 per machine hour. Show Answer Correct Answer: B) RM 5.00 per machine hour. 22. A company has to pay RM10, 000 per unit royalty to the designer of a product which it manufactures and sells. The royalty charge would be classified as a A) Administrative overhead. B) Production overhead. C) Selling overhead. D) Direct expense. Show Answer Correct Answer: D) Direct expense. 23. Loss of material due to fire is treated as A) Normal Loss. B) Abnormal Loss. C) Direct expenses. D) An overhead. Show Answer Correct Answer: B) Abnormal Loss. 24. Cost accounting plays little role in ..... A) Determine interest costs that can be capitalized. B) Create and execute operating budgets. C) Establish the cost method in controlling activities. D) Determine the company's costs and profits in a period. Show Answer Correct Answer: A) Determine interest costs that can be capitalized. 25. Indicate which of the following fall under the category methods of costing- A) Standard costing. B) Marginal costing. C) Processscosting. D) None of these. Show Answer Correct Answer: C) Processscosting. 26. A cost which is unaffected in total by increases or decreases in the volume of output is called A) Semi-variable. B) Fixed cost. C) Variable cost. D) Stepped-cost. Show Answer Correct Answer: B) Fixed cost. 27. A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a A) Variable cost. B) Product cost. C) Fixed cost. D) Period cost. Show Answer Correct Answer: C) Fixed cost. 28. In job costing, the basic document to accumulate and ascertain the cost of each order is A) Job cost sheet. B) Requisition sheet. C) Invoice. D) Purchase order. Show Answer Correct Answer: A) Job cost sheet. 29. Which of the following costs is not a product cost? A) Depreciation on the plant installed in the factory. B) The electricity cost of the office of factory foreman. C) The cost of shipping finished products to customers. D) The cost of fuel used in the factory. Show Answer Correct Answer: C) The cost of shipping finished products to customers. 30. Which of the following descriptors refers to management accounting information? A) It is verifiable and reliable. B) It is driven by rules. C) It is prepared for shareholders. D) It provides reasonable and timely estimates. Show Answer Correct Answer: D) It provides reasonable and timely estimates. ← PreviousNext →Related QuizzesIntroduction QuizzesAccounting QuizzesIntroduction To Cost Accounting Quiz 1Introduction 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 8Introduction To Cost Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books