This quiz works best with JavaScript enabled. Home > Accounting > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Prime costs are comprised of A) Direct labour costs plus production overheads. B) Production overheads plus materials costs plus direct labour costs. C) Materials costs plus direct labour costs. D) Materials costs plus production overheads. Show Answer Correct Answer: C) Materials costs plus direct labour costs. 2. The only method of allocating service department costs to producing departments that considers reciprocal services is called: A) Step method. B) Direct method. C) Out-of-step method. D) Algebraic method. Show Answer Correct Answer: D) Algebraic method. 3. J & L Company incurred the following costs:Direct materials P215, 000 Conversion costs 435, 000 Manufacturing overhead 190, 000Selling and Administrative expenses 185, 000What is J & L total period costs? A) P620, 000. B) P185, 000. C) P400, 000. D) P275, 000. Show Answer Correct Answer: B) P185, 000. 4. Standing charges are also known as ..... expenses A) Variable. B) Semi-fixed. C) Semi-variable. D) Fixed. Show Answer Correct Answer: D) Fixed. 5. When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is? A) 83.33%. B) 80%. C) 120%. D) 100%. Show Answer Correct Answer: C) 120%. 6. The difference between factory cost and cost of production is: A) Raw materials consumed. B) Office and administration overheads. C) Selling and distribution overheads. D) Cost of goods sold. Show Answer Correct Answer: B) Office and administration overheads. 7. For exercising control over cost, the best system is ..... costing A) Estimated. B) Standard. C) Marginal. D) Historical. Show Answer Correct Answer: B) Standard. 8. Cost of 75 units introduced-Rs. 1308, Additional expenses incurred-Rs. 202, Normal loss-15 units, Actual output-70 units and scrap value-Rs.4/ unit. Calculate value of abnormal gain. A) Rs. 1450. B) Rs. 241.67. C) Rs. 1510. D) Rs. 251.67. Show Answer Correct Answer: B) Rs. 241.67. 9. In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are: A) Allocated costs. B) Budgeted costs. C) Fixed costs. D) Variable costs. Show Answer Correct Answer: C) Fixed costs. 10. Donations and charities paid shown in the financial accounts is (A) Appropriation of profit (B) Financial charge (C) Fictitious Asset (D) Financial Income A) Financial charge. B) Appropriation of profit. C) Financial Income. D) Fictitious Asset. Show Answer Correct Answer: B) Appropriation of profit. 11. ..... is the oldest branch of accounting. A) Financial accounting. B) Cost accounting. C) Management accounting. D) None of these. Show Answer Correct Answer: A) Financial accounting. 12. In Shoes factory ..... is direct material A) Wood. B) Leather. C) Clay. D) Steel. Show Answer Correct Answer: B) Leather. 13. ..... is provided in contracts to cover any likely changes in price or utilization of materials and labour. A) Escalation clause. B) DeEscalation clause. C) Rule. D) Extra price. Show Answer Correct Answer: A) Escalation clause. 14. The budgeted indirect labour hours are multiplied to indirect labour cost rate is to calculate: A) Budgeted total indirect labour costs. B) Estimated total indirect labour costs. C) Expected total labour hours. D) Budgeted total indirect labour costs. Show Answer Correct Answer: A) Budgeted total indirect labour costs. 15. The term 'cost' refers to A) An asset that has given benefit and is now expired. B) The value of the sacrifice made to acquire goods or services. C) Present value of future benefits. D) The price of products sold or services rendered. Show Answer Correct Answer: C) Present value of future benefits. 16. How much the total direct and indirect cost for client 457? A) RM 3, 356.33. B) RM 3, 563.33. C) RM 6, 533.33. D) RM 5, 633.33. Show Answer Correct Answer: C) RM 6, 533.33. 17. Which of these is not a Material control technique A) ABC Analysis. B) Fixation of raw material levels. C) Maintaining stores ledger. D) Control over slow moving and non moving items. Show Answer Correct Answer: C) Maintaining stores ledger. 18. Cost accounting was originated to meet the deficiencies of ..... accounting. A) Financial. B) Managerial. C) Standard Costing. D) All of Above. Show Answer Correct Answer: A) Financial. 19. Compute the product cost using absorption costing if the budgeted costs are as follows:Direct material used Rm30Direct labour Rm15Direct expenses Rm8Fixed manufacturing overhead Rm2.50Variable manufacturing overhead Rm13 A) Rm60.50. B) Rm55.50. C) Rm66.00. D) Rm68.50. Show Answer Correct Answer: D) Rm68.50. 20. For calculating the costs of products and services, a standard costing system: A) Only requires a simple recording system. B) Uses standard costs to determine the cost of products. C) Does not have to keep track of actual costs. D) All of these answers are correct. Show Answer Correct Answer: D) All of these answers are correct. 21. Fixed cost per unit decreases when ..... A) Variable cost per unit increases. B) Production volume increases. C) Production volume decrease. D) Variable cost per unit decreases. Show Answer Correct Answer: B) Production volume increases. 22. $ \sqrt{\frac{2XAC\times OA}{AC}}$ this is the formula for A) ABC Method. B) EOQ Method. C) Standard Method. D) None of above. Show Answer Correct Answer: B) EOQ Method. 23. For a manufacturing sector company, the cost of factory depreciation is classified as a ..... A) Manufacturing overhead cost. B) Period cost. C) Direct manufacturing labor cost. D) Direct material cost. Show Answer Correct Answer: A) Manufacturing overhead cost. 24. Sub contract cost is charged to ..... A) Contract account. B) Work in progress. C) Profit and loss account. D) Contractor's account. Show Answer Correct Answer: A) Contract account. 25. A common starting point in the budgeting process is A) Expected future net income. B) A clean slate, with no expectations. C) To motivate the sales force. D) Past performance. Show Answer Correct Answer: D) Past performance. 26. If the budgeted annual indirect cost is RM70, 000, budgeted annual quantity is 3, 000, then budgeted OAR for indirect cost will be: A) RM 15.67 per unit. B) RM 16.67 per unit. C) RM 25.00 per unit. D) RM 23.33 per unit. Show Answer Correct Answer: D) RM 23.33 per unit. 27. Is the assignment of accountability for costs or production results A) Financial Accounting. B) Cost Accounting. C) Management Accounting. D) Responsibility Accounting. Show Answer Correct Answer: D) Responsibility Accounting. 28. Which of the following are types of costs based on traceability? A) Period costs and product costs. B) Opportunity costs and sunk costs. C) Marginal costs and controllable costs. D) Direct costs and indirect costs. Show Answer Correct Answer: D) Direct costs and indirect costs. 29. The Jamison Corporation makes computers. Mary Wiggins is the accountant who completes the job cost sheets. Her pay is $ 17 per hour. How should Mary's pay be classified? A) Direct materials. B) Direct labor. C) Indirect labor. D) Indirect materials. Show Answer Correct Answer: C) Indirect labor. 30. . Economic order quantity is a tool for controlling ..... A) Cost. B) Machinery. C) Price. D) Inventory. Show Answer Correct Answer: D) Inventory. ← 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books