This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ascertainment of cost with the help of actual expenses incurred in the past termed as.. A) Historical Costing. B) Standard Costing. C) Marginal Costing. D) Operating costing. Show Answer Correct Answer: A) Historical Costing. 2. Primary users are internal managers A) Cost Accounting. B) Management Accounting. C) Financial Accounting. D) Responsibility Accounting. Show Answer Correct Answer: B) Management Accounting. 3. Which of the following is not taken into account while calculating quick ratio A) Stock. B) Bank Balance. C) Creditors. D) Cash Balance. Show Answer Correct Answer: A) Stock. 4. Pareto's Law is concerned with A) VED Analysis. B) ABC Analysis. C) JIT. D) None of these. Show Answer Correct Answer: B) ABC Analysis. 5. Imputed cost is a A) Variable cost. B) Real cost. C) Notional cost. D) Abnormal cost. Show Answer Correct Answer: C) Notional cost. 6. Which of the following is / are time based incentive wage plan? A) Halsey Premium Plan. B) Halsey Weir premium plan. C) Rowan Premium plan. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. The Bead Boutique offers hand crafted jewelry for sale. The owner counts inventory only once per year. What type of inventory control system does the Bead Boutique use? A) Product Inventory. B) Perpetual Inventory. C) Periodic Inventory. D) Profitable Inventory. Show Answer Correct Answer: C) Periodic Inventory. 8. Variance if the actual costs is less than the budget A) Unfavorable Variance. B) Favorable Variance. C) No Variance. D) Cannot be determined. Show Answer Correct Answer: B) Favorable Variance. 9. What is the cost unit for electricity cost? A) Kilowatt hours. B) Litres. C) Tonnes. D) None of above. Show Answer Correct Answer: A) Kilowatt hours. 10. In the determination of factory overhead application rates, the numerator of the formula is the: A) Estimated factory overhead for the next period. B) Actual labor hours for the next period. C) Estimated labor hours for the next period. D) Actual factory overhead for the next period. Show Answer Correct Answer: A) Estimated factory overhead for the next period. 11. What is the total production cost for Job 123? A) RM 1, 166.50. B) RM 1, 167.50. C) RM 1, 116.75. D) RM 1, 667.50. Show Answer Correct Answer: D) RM 1, 667.50. 12. "The amount of expenditure (actual or notional) incurred or attributable to a given thing" is A) Cost. B) Revenue. C) Value. D) Expense. Show Answer Correct Answer: A) Cost. 13. Economic batch quantity is used in batch costing to A) Meet specific customer requirements. B) Produce at the least possible cost. C) In order to ensure stock in anticipation of demand. D) None of these. Show Answer Correct Answer: B) Produce at the least possible cost. 14. Calculate EBQ if annual demand is 24000 units, Set up cost per batch is Rs. 120 and carrying cost per unit is Rs. 0.36. A) 4000 units. B) 2000 units. C) 1200 units. D) 3600 units. Show Answer Correct Answer: A) 4000 units. 15. In marginal costing method, sale price is fixed on the basis of variable cost A) True. B) False. C) True to some extent. D) None of the above. Show Answer Correct Answer: A) True. 16. Suraya entitled to get overtime at 60% premium. She worked 6 hours for overtime and her basic rate is RM10 per hour. How much the overtime pay for Suraya? A) RM63. B) RM39. C) RM96. D) RM36. Show Answer Correct Answer: C) RM96. 17. Process costing is suitable for ..... A) Oil refining firms. B) Brick manufacturing firms. C) Transport firms. D) Hospitals. Show Answer Correct Answer: A) Oil refining firms. 18. Prime cost is calculated as: A) Direct Labour-DirectExpense. B) Direct Expense+overheads. C) Direct Cost + Indirect Cost. D) Direct Material+Direct Labour+Direct Expense. Show Answer Correct Answer: D) Direct Material+Direct Labour+Direct Expense. 19. J & L Company incurred the following costs:Direct materials P215, 000 Conversion costs 435, 000 Manufacturing overhead 190, 000 Selling and Admin expenses 185, 000J & L total manufacturing costs is? A) P460, 000. B) P650, 000. C) P840, 000. D) P645, 000. Show Answer Correct Answer: B) P650, 000. 20. Production order with respect to a job is issued by department. A) Production Planning. B) Purchase. C) Production. D) Sales. Show Answer Correct Answer: A) Production Planning. 21. A bill of material serves the purpose of ..... A) Material requisition. B) Stores ledger. C) Material issue analysis sheet. D) None of these. Show Answer Correct Answer: A) Material requisition. 22. Patient nights is the cost unit to ascertain cost of ..... A) Home-stay. B) Hospital. C) Taxi. D) Hotel. Show Answer Correct Answer: B) Hospital. 23. ..... is recording of business transactions in the books of accounts A) Cost Accounting. B) Management Accounting. C) Financial Accounting. D) All of the above. Show Answer Correct Answer: C) Financial Accounting. 24. Work certified is valued at ..... price. A) Cost. B) Market. C) Contract. D) Standard. Show Answer Correct Answer: C) Contract. 25. ..... is the method of costing used to ascertain the cost of a product at each stage of manufacture. A) Contract costing. B) Job costing. C) Batch costing. D) Process costing. Show Answer Correct Answer: D) Process costing. 26. What is the total estimated selling and administration overhead? A) RM 217.50. B) RM 219.50. C) RM 220.50. D) RM 218.50. Show Answer Correct Answer: A) RM 217.50. 27. Cleaner is an example of A) Direct labour. B) Maintenance. C) Indirect labour. D) Support service. Show Answer Correct Answer: C) Indirect labour. 28. Financial Accounting is concerned with the: A) Recording of business expenses and revenues. B) Recording of the cost of products and services. C) Recording of day-to-day business transactions. D) None of the above. Show Answer Correct Answer: C) Recording of day-to-day business transactions. 29. According to ICMA London, costing is "that form of specific order costing, which applies where work is undertaken to customers' special requirements." A) Job. B) Batch. C) Process. D) Standard. Show Answer Correct Answer: A) Job. 30. Cost accounting is important to the management in determining the ..... of their product. A) Replacement price. B) Selling price. C) Market price. D) Budget price. Show Answer Correct Answer: B) Selling price. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books