This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the budgeted direct labour hours is 34 hours and direct labour rate is RM5.00, then the total direct labour cost would be: A) RM 157.00. B) RM 175.00. C) RM 170.00. D) RM 177.00. Show Answer Correct Answer: C) RM 170.00. 2. An example of variable cost is ..... A) Interest on capital. B) Depreciation. C) Direct labour. D) Insurance. Show Answer Correct Answer: C) Direct labour. 3. To be successful, an incentive wage plan must: A) Result in immediate reward every payday. B) Provide for proportionately more pay for output above standard. C) Be applicable to situations in which a worker can increase output. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. The sum of operating ratio & operating profit ratio is always ..... % A) 90. B) 100. C) 50. D) 80. Show Answer Correct Answer: B) 100. 5. Obligations (amounts owed) are reported on the balance sheet and are referred to as ..... A) Debt. B) Owner Equity. C) Assets. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 6. ..... means ascertainment of cost A) Costing. B) Cost Accounting. C) Cost Accountancy. D) All of the above. Show Answer Correct Answer: A) Costing. 7. This budget shows both the quantity and cost of direct materials to be purchased. A) Indirect materials. B) Materials. C) Production. D) Direct materials. Show Answer Correct Answer: D) Direct materials. 8. Which one of the following is an example of a mixed cost? A) Salaries. B) Factory rent. C) Straight line depreciation. D) Telephone bills. Show Answer Correct Answer: D) Telephone bills. 9. Which is a method of specific order costing? A) Output costing. B) Job costing. C) Process costing. D) Service costing. Show Answer Correct Answer: B) Job costing. 10. Works overheads on incomplete jobs at the end of the period are transferred to which account? A) Works overhead control accountsuspense account. B) Works overhead suspense account. C) Stores ledger account. D) Work in progress ledger control account. Show Answer Correct Answer: B) Works overhead suspense account. 11. Which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance? A) Rowan Plan. B) Differential Piece rate system. C) Halsey Premium plan. D) Time rate system. Show Answer Correct Answer: B) Differential Piece rate system. 12. In a standard costing system, a cost-allocation base would MOST likely be: A) Actual machine-hours. B) Normal machine-hours. C) Standard machine-hours. D) Any of these answers is correct. Show Answer Correct Answer: C) Standard machine-hours. 13. Wastage has two types A) True. B) False. C) Both. D) None of above. Show Answer Correct Answer: A) True. 14. The recording of time of arrival or departure at the factory time is A) Time booking. B) Time allotting. C) Time taking. D) Time keeping. Show Answer Correct Answer: D) Time keeping. 15. ..... is a location, person or item of equipment (or group of these) for which costs may be ascertained and used for the purpose of control. A) Revenue centre. B) Responsibility. C) Cost centre. D) Profit centre. Show Answer Correct Answer: C) Cost centre. 16. Bin card is a record of ..... only. A) Quantity. B) Cost. C) Value. D) Expense. Show Answer Correct Answer: A) Quantity. 17. Direct Materials + Direct Labor A) Conversion Cost. B) Prime Cost. C) Manufacturing Cost. D) Work in Process. Show Answer Correct Answer: B) Prime Cost. 18. From among the following select an example of cost object with regard to a department. A) Book. B) Building Construction. C) Sugar manufacturing. D) Finance & Accounts. Show Answer Correct Answer: D) Finance & Accounts. 19. Stores Ledger is maintained in the ..... A) Store. B) Finance department. C) Cost accounting department. D) Both a & b. Show Answer Correct Answer: C) Cost accounting department. 20. Which among the following is an example of behavior wise classification of cost. A) Controllable cost. B) Indirect labour. C) Semi variable cost. D) Normal cost. Show Answer Correct Answer: C) Semi variable cost. 21. The cost of production of 200 units is rs. 5600. The normal wastage is 10 percent and is sold as scrap @ rs. 10 per unit. Find out the cost per unit of remaining units. A) 28. B) 30. C) 56. D) None of the above. Show Answer Correct Answer: B) 30. 22. Compensation of all manufacturing labor that can be traced to the cost object. A) Salary Expense. B) Direct Materials. C) Indirect Labor. D) Direct Labor. Show Answer Correct Answer: D) Direct Labor. 23. ..... refers to the process of recording actual time taken by a worker on various jobs or work orders. A) Time keeping. B) Time booking. C) Time allotting. D) Time taking. Show Answer Correct Answer: B) Time booking. 24. Scope of specific order costing is very wide and includes A) Job, Batch and contract costing. B) Process, Contract and unit costing. C) Batch, Job and process costing. D) Unit, service and transport costing. Show Answer Correct Answer: A) Job, Batch and contract costing. 25. Budgeting is used to help companies: A) Plan to better satisfy customers. B) Anticipate potential problems. C) Focus on opportunities. D) All of these answers are correct. Show Answer Correct Answer: D) All of these answers are correct. 26. Statement 1:Process costing is applicable to same or similar goodsStatement 2:Process costing is used by companies that make large number of similar products A) False; True. B) False; False. C) True; True. D) True; False. Show Answer Correct Answer: C) True; True. 27. Overhead costs have been increasing due to all of the following EXCEPT: A) Product proliferation. B) Increased automation. C) Tracing more costs as direct costs with the help of technology. D) More complexity in distribution processes. Show Answer Correct Answer: C) Tracing more costs as direct costs with the help of technology. 28. The following are the inventories in Manufacturing, except A) Raw Materials. B) Cost of Good Sold. C) Work in Process. D) Finished Goods. Show Answer Correct Answer: B) Cost of Good Sold. 29. Ben's Barbershop balance sheet contains no inventory account. How would this company be classified? A) Construction business. B) Manufacturing business. C) Merchandising business. D) Service business. Show Answer Correct Answer: D) Service business. 30. Cost of idle time due to non-availability of raw material is A) Charged to overhead cost. B) Charged to respective jobs. C) Charged to costing profit & loss account. D) None of the above. Show Answer Correct Answer: B) Charged to respective jobs. ← 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 8Introduction To Cost Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books