This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value for: A) The customer using the products or services. B) Major suppliers of component parts. C) Plant employees. D) The current shareholders. Show Answer Correct Answer: A) The customer using the products or services. 2. Ahmad worked as account assistant. He was paid RM25 per hour. He worked 45 hours and normal working hours is 40 hours. What is the basic pay for Ahmad? A) RM1, 215. B) RM1, 125. C) RM1, 000. D) RM1, 100. Show Answer Correct Answer: C) RM1, 000. 3. Depending on the terms of contract, the contractee may pay only 80% to 90% of work certified to the contractor. This is referred to as ..... A) Work in progress. B) Notional profit. C) Retention money. D) Cash ratio. Show Answer Correct Answer: D) Cash ratio. 4. Which of the following would not be a period cost? A) Research and development. B) Direct materials. C) Advertising costs. D) Office supplies. Show Answer Correct Answer: B) Direct materials. 5. Under Gantt's Task & Bonus plan, no bonus is payable to a worker if his efficiency is less than A) 66.33%. B) 83.33%. C) 100%. D) None of above. Show Answer Correct Answer: C) 100%. 6. In cost accounting, a cost object is A) A target or standard to be aimed for. B) Any object for hwich dosts or measures are assigned. C) A problem which might prvent accounting targets being met. D) All of the above. Show Answer Correct Answer: B) Any object for hwich dosts or measures are assigned. 7. ..... provides information for income determination A) Financial accounting. B) Management accounting. C) Cost accounting. D) None of the above. Show Answer Correct Answer: A) Financial accounting. 8. Management accounting includes all of the following EXCEPT A) Implementing strategies. B) Developing budgets. C) Preparing special studies and forecasts. D) Preparing the statement of cash flows. Show Answer Correct Answer: D) Preparing the statement of cash flows. 9. A method of costing applied where costs are collected and accumulated for each work order. A) Operating costing. B) Contract costing. C) Process costing. D) Job costing. Show Answer Correct Answer: D) Job costing. 10. Calculate closing stock for Bb factory if information of the stock for 2019 is as follows:Opening stock 2500Production units 20 000Sales units 21 000 A) 1000 unit. B) 3500 unit. C) 2000 unit. D) 1500 unit. Show Answer Correct Answer: D) 1500 unit. 11. The MAJOR challenge when planning fixed overhead is: A) Calculating total costs. B) Calculating the cost-allocation rate. C) Choosing the appropriate level of capacity. D) Choosing the appropriate planning period. Show Answer Correct Answer: C) Choosing the appropriate level of capacity. 12. In costing, this is normal output that we may face EXCEPT: A) Normal Loss. B) Abnormal Gain. C) Abnormal Loss. D) Normal Gain. Show Answer Correct Answer: D) Normal Gain. 13. Managerial accounting reports focus on A) The sales team. B) The chief executive officer's favorite departments. C) The entire company only. D) On the company as a whole or as a segment. Show Answer Correct Answer: D) On the company as a whole or as a segment. 14. Variable costs are conventionally deemed to be A) Outside the control of management. B) Constant in total when production volume changes. C) Constant per unit of output. D) Unaffected by inflation. Show Answer Correct Answer: C) Constant per unit of output. 15. Cost classification can be done in ..... A) Two ways. B) Three ways. C) Several ways. D) None of the above. Show Answer Correct Answer: C) Several ways. 16. Standard time allowed for job is 20 hours and the rate/ hour is Rs.1 and actual hours worked is 15 hours. Calculate earnings under Rowan plan. A) Rs. 17.50. B) Rs. 15. C) Rs. 20. D) Rs. 18.75. Show Answer Correct Answer: D) Rs. 18.75. 17. Direct Materials A) Materials and supplies that are consumed during the manufacture of a product, and which are directly identified. B) Materials and supplies that are consumed during the manufacture of a product, and which are indirectly identified. C) All materials used in the factory. D) None of above. Show Answer Correct Answer: A) Materials and supplies that are consumed during the manufacture of a product, and which are directly identified. 18. Management has to decide between to alternative choices of action. Which of the following costs are relevant to their decision making? A) Sunk cost. B) Marginal cost. C) Opportunity cost. D) Both 2 and 3. Show Answer Correct Answer: D) Both 2 and 3. 19. Marginal Cost and variable cost both are synonyms A) True. B) False. C) Both are different. D) None of the above. Show Answer Correct Answer: A) True. 20. ..... time refers to the time for which wages are paid without any production A) Under. B) Idle. C) Excess. D) Over. Show Answer Correct Answer: B) Idle. 21. Stock turnover ratio is calculated between cost of goods sold and ..... A) Closing Stock. B) Sales. C) Average Stock. D) Opening Stock. Show Answer Correct Answer: C) Average Stock. 22. The following are example of indirect labour, EXCEPT ..... A) Supervisor. B) Manager. C) Operator. D) Clerk. Show Answer Correct Answer: C) Operator. 23. Which among the following is concerned with reducing cost? A) Cost control. B) Cost reduction. C) Standard costing. D) All the above. Show Answer Correct Answer: B) Cost reduction. 24. A cost center and a cost unit are the same A) YES. Both are used to ascertain cost. B) YES. Both are used for cost control. C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. D) None of above. Show Answer Correct Answer: C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. 25. Which of the following groups would be LEAST likely to receive detailed management accountingreports? A) Production supervisors. B) Sales representatives. C) Managers. D) Stockholders. Show Answer Correct Answer: D) Stockholders. 26. Salary paid to general manager is an item of ..... expenses. A) Fixed. B) Estimated. C) Variable. D) Semi variable. Show Answer Correct Answer: A) Fixed. 27. Level of activity where total revenues equals total variable cost and fixed cost A) Break Even Point. B) CVP. C) Operating Leverage. D) Target Profit. Show Answer Correct Answer: A) Break Even Point. 28. Contract price is fixed in advance in case of A) Cost plus contract. B) Target costing. C) Fixed price contract. D) None of these. Show Answer Correct Answer: C) Fixed price contract. 29. To prepare the cash budget, all of the following budgets are required except: A) Cost of goods sold budget. B) Capital expenditures budget. C) Revenue budget. D) Budgeted balance sheet. Show Answer Correct Answer: D) Budgeted balance sheet. 30. How much is the overall cost charge to client 457? A) RM 9, 513.33. B) RM 8, 513.33. C) RM 7.513.33. D) RM 6, 513.33. Show Answer Correct Answer: C) RM 7.513.33. ← 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 7Introduction To Cost Accounting Quiz 8Introduction To Cost Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books