This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Manufacturers of components of television adopt A) Job costing. B) Batch costing. C) Contract costing. D) Process costing. Show Answer Correct Answer: B) Batch costing. 2. What is the total labour cost for Job 123? A) RM 600.00. B) RM 700.00. C) RM 800.00. D) RM 900.00. Show Answer Correct Answer: A) RM 600.00. 3. Direct costs are those which A) Can be accurately traced to a product. B) Are significant in the production process. C) Are incurred in a specific period. D) Include only purchase of materials. Show Answer Correct Answer: A) Can be accurately traced to a product. 4. ..... method of costing is used in hospitals A) Operating costing. B) Unit costing. C) Job costing. D) Contract costing. Show Answer Correct Answer: A) Operating costing. 5. Cost that cannot be changed by any present and future decision, therefore irrelevant cost. A) Variable Cost. B) Fixed Cost. C) Sunk Cost. D) Relevant Cost. Show Answer Correct Answer: C) Sunk Cost. 6. Which of the following is a characteristic of financial accounting? A) Not mandatory. B) Must follow GAAP. C) Emphasis on relevance of data, rather than precision. D) Both A and B. Show Answer Correct Answer: C) Emphasis on relevance of data, rather than precision. 7. What is the hourly cost of Siti Aafiyah's work to Al-Ghazi & Co.? A) RM 331.33. B) RM 313.33. C) RM 133.33. D) RM 113.33. Show Answer Correct Answer: C) RM 133.33. 8. The method of costing applied in special ship building is A) Batch costing. B) Job costing. C) Process costing. D) None of the above. Show Answer Correct Answer: B) Job costing. 9. The term 'Sunk cost' refers to ..... A) Cost that are directly influenced by unit manager. B) Past cost that are now irrevocable. C) Cost that should be incurred in a particular production process. D) Benefits lost from rejecting the next best alternative. Show Answer Correct Answer: B) Past cost that are now irrevocable. 10. When the actual loss is more than the estimated loss, the difference between the two is considered to be ..... A) Abnormal gain. B) Abnormal loss. C) Normal loss. D) Normal gain. Show Answer Correct Answer: B) Abnormal loss. 11. Warehousing cost is an item of A) Administrative overhead. B) Distribution overhead. C) Material cost. D) Work overhead. Show Answer Correct Answer: B) Distribution overhead. 12. In process account, normal wastage is written on the: A) Debit side. B) Credit side. C) Both sides. D) None of the above. Show Answer Correct Answer: B) Credit side. 13. Overheads are also known as ..... cost. A) Direct. B) Indirect. C) Prime. D) Sunk. Show Answer Correct Answer: B) Indirect. 14. Fixed overhead costs include: A) The cost of sales commissions. B) Property taxes paid on plant facilities. C) Energy costs. D) Indirect materials. Show Answer Correct Answer: B) Property taxes paid on plant facilities. 15. The following items can be categorized as fixed cost, EXCEPT ..... A) Rental of building. B) Insurance. C) Depreciation. D) Electricity. Show Answer Correct Answer: D) Electricity. 16. On increase or decrease of one unit in the volume of production, the variation in total cost is called ..... cost A) Variable. B) Fixed. C) Marginal. D) Absorption. Show Answer Correct Answer: C) Marginal. 17. Time wages are paid on the basis of A) Standard time. B) Time saved. C) Output produced. D) Actual Time. Show Answer Correct Answer: D) Actual Time. 18. Which of the following statements regarding techniques of inventory control are correct? A) Fixation of selling price with good profit. B) Establishment of inventory budgets. C) Establishment of inventory sales. D) Fixation of profit with high return. Show Answer Correct Answer: B) Establishment of inventory budgets. 19. Financial accounting provides a historical perspective, whereas management accounting emphasizes ..... A) A current perspective. B) The future. C) Past transactions. D) Reports to shareholders. Show Answer Correct Answer: B) The future. 20. "Standard Overhead" cost is more than "Overhead Allocation" is called. A) Under budgeted. B) Over estimation of costs. C) Over allocated overhead. D) Under allocated overhead. Show Answer Correct Answer: D) Under allocated overhead. Next →Related QuizzesIntroduction QuizzesIntroduction 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 8Introduction To Cost Accounting Quiz 9Introduction To Cost Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books