This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Last in first out method is suitable in times of ..... A) Rising prices. B) Falling prices. C) Fluctuating prices. D) None of these. Show Answer Correct Answer: A) Rising prices. 2. Variable cost ..... A) Decreases with increase in production. B) Always remains fixed. C) Increase with decrease in production. D) Fluctuates with fluctuation in the volume of production. Show Answer Correct Answer: D) Fluctuates with fluctuation in the volume of production. 3. Earning per share = Profits available for equity share holders / ..... A) Opening Stock. B) No. of Equity Shares. C) Sales. D) Marginal Cost. Show Answer Correct Answer: B) No. of Equity Shares. 4. The first step in implementing target pricing and target costing is A) Performing value engineering. B) Choosing a target price. C) Determining a target cost. D) Developing a product that satisfies needs of potential customers. Show Answer Correct Answer: D) Developing a product that satisfies needs of potential customers. 5. Statement 1:The traditional role of cost accounting is to record full product cost data for external reporting.Statement 2:Direct materials plus factory overhead equals total manufacturing costs A) False; False. B) False; True. C) True; True. D) True; False. Show Answer Correct Answer: D) True; False. 6. Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as ..... A) Assets. B) Owner Equity. C) Liabilities. D) Equity. Show Answer Correct Answer: A) Assets. 7. Which of the following is NOT possess the characteristics of the good information? A) Consistency. B) Relevant. C) Complete. D) Reliable. Show Answer Correct Answer: A) Consistency. 8. It is expired costs with producing any revenue benefit. A) Cost. B) Income. C) Losses. D) Expenses. Show Answer Correct Answer: D) Expenses. 9. The production of repetitive nature can be measured in terms of units and quantity of output is suitable in ..... system A) Hourly. B) Time. C) Piece. D) Bonus. Show Answer Correct Answer: C) Piece. 10. Indirect expenses are also called ..... A) Chargeable expenses. B) Overheads. C) Sundry expenses. D) Secondary expenses. Show Answer Correct Answer: B) Overheads. 11. As current technology changes manufacturing processes, it is likely that direct ..... A) Labor will increase. B) Materials will decrease. C) Labor will decrease. D) Materials will increase. Show Answer Correct Answer: C) Labor will decrease. 12. The following are incorrect statements about cost objects ..... A) A cost object is an item whose cost is measured. B) Cost objects are activities that are usually accumulated. C) Processes cannot be cost objects. D) Strategic objectives can become cost objects. Show Answer Correct Answer: C) Processes cannot be cost objects. 13. Calculate EOQ (approx.) from the following details:Annual Consumption:24000 units Ordering cost:Rs. 10 per order Purchase price:Rs. 100 per unitCarrying cost:5% A) 300. B) 310. C) 290. D) 400. Show Answer Correct Answer: B) 310. 14. Budgeting provides all of the following except: A) Support for the management functions of planning and coordination. B) A means to communicate the organization's short-term goals to its members. C) An ethical framework for decision making. D) A means to anticipate problems. Show Answer Correct Answer: C) An ethical framework for decision making. 15. Financial accounting is concerned primarily with: A) External reporting to investors, creditors, and government authorities. B) Cost planning and cost controls. C) Profitability analysis. D) Providing information for strategic and tactical decisions. Show Answer Correct Answer: A) External reporting to investors, creditors, and government authorities. 16. What is the Break Even Percentage if the Margin of Safety is 60% A) 40%. B) 100%. C) 0%. D) 60%. Show Answer Correct Answer: A) 40%. 17. The main object of Cost Accounting is ..... A) To record day-to-day transactions of the business. B) To determine tender price. C) To reveal managerial efficiency. D) To ascertain true cost of product & services. Show Answer Correct Answer: D) To ascertain true cost of product & services. 18. Economic order quantity is that quantity at which cost of holding and carrying inventory is: A) Maximum and equal. B) Minimum and equal. C) It can be maximum or minimum depending upon case to case. D) Minimum and unequal. Show Answer Correct Answer: B) Minimum and equal. 19. Material control does not cover the following stage. A) Production. B) Storing of materials. C) Purchase of materials. D) Issue of materials. Show Answer Correct Answer: A) Production. 20. The following are the inventories of a manufacturing company, except ..... A) Direct materials inventory. B) Work-in-process inventory. C) Merchandise inventory. D) Finished-goods inventory. Show Answer Correct Answer: C) Merchandise inventory. 21. Work in progress in contract means A) Work certified. B) Work certified and uncertified. C) Work uncertified. D) None of these. Show Answer Correct Answer: B) Work certified and uncertified. 22. In ABC analysis"C' class items require A) High Control. B) Moderate control. C) Loose Control. D) None of these. Show Answer Correct Answer: C) Loose Control. 23. Product costs would not include A) Materials used in making a hand-bag. B) Sales staff salaries. C) Wages of a worker installing solar water-heaters. D) Overheads assigned to the manufacture of computer components. Show Answer Correct Answer: B) Sales staff salaries. 24. Calculate re-order level from the following:Safety stock:1000 units Consumption per week:500 units It takes 12 weeks to reach material from the date of ordering A) 3000 units. B) 7000 units. C) 1000 units. D) 6000 units. Show Answer Correct Answer: B) 7000 units. 25. Cost accounting is different from Financial Accounting. Which of the following are the BASIS of their difference? i. Unit measurement.ii. Report frequency.iii. Accounting principle.iv. Taxation principle. A) I, ii and iii. B) Ii, iii and iv. C) I, ii and iv. D) Iii and iv. Show Answer Correct Answer: A) I, ii and iii. 26. Fixed cost and variable cost are which classification of cost? A) Production process. B) Cost behaviour. C) Nature of expense. D) Cost function. Show Answer Correct Answer: B) Cost behaviour. 27. Calculate total cost per unit for 3FSB. A) RM 50.00. B) RM 20.00. C) RM 40.00. D) RM 30.00. Show Answer Correct Answer: C) RM 40.00. 28. What is the total profit for Job 123? A) RM 516.88. B) RM 416.88. C) RM 316.88. D) RM 616.88. Show Answer Correct Answer: B) RM 416.88. 29. Labour Turn over is measured by A) Number of workers replaced/average number of workers. B) Number of workers joining /number in the beginning of the period. C) Number of workers left /Number in the beginning plus number at the end. D) None of above. Show Answer Correct Answer: A) Number of workers replaced/average number of workers. 30. All else constant, if the selling price falls, A) Total variable costs will be lower than expected. B) Per-unit contribution margin will be lower than expected. C) Contribution margin percentage will be higher than expected. D) Total contribution margin will be higher than expected. Show Answer Correct Answer: B) Per-unit contribution margin will be lower than expected. ← PreviousNext →Related QuizzesIntroduction QuizzesAccounting QuizzesIntroduction To Cost Accounting Quiz 1Introduction To Cost Accounting Quiz 2Introduction 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