This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. Cost accounting is important to the management in determining the ..... of their product. A) Budget price. B) Selling price. C) Market price. D) Replacement price. Show Answer Correct Answer: B) Selling price. 4. Prime costs are comprised of A) Materials costs plus direct labour costs. B) Materials costs plus production overheads. C) Direct labour costs plus production overheads. D) Production overheads plus materials costs plus direct labour costs. Show Answer Correct Answer: A) Materials costs plus direct labour costs. 5. The only method of allocating service department costs to producing departments that considers reciprocal services is called: A) Direct method. B) Step method. C) Out-of-step method. D) Algebraic method. Show Answer Correct Answer: D) Algebraic method. 6. 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) P185, 000. B) P275, 000. C) P400, 000. D) P620, 000. Show Answer Correct Answer: A) P185, 000. 7. Standing charges are also known as ..... expenses A) Variable. B) Semi-variable. C) Fixed. D) Semi-fixed. Show Answer Correct Answer: C) Fixed. 8. When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is? A) 80%. B) 100%. C) 83.33%. D) 120%. Show Answer Correct Answer: D) 120%. 9. 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. 10. For exercising control over cost, the best system is ..... costing A) Estimated. B) Standard. C) Marginal. D) Historical. Show Answer Correct Answer: B) Standard. 11. 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. 1510. B) Rs. 1450. C) Rs. 241.67. D) Rs. 251.67. Show Answer Correct Answer: C) Rs. 241.67. 12. 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. 13. Donations and charities paid shown in the financial accounts is (A) Appropriation of profit (B) Financial charge (C) Fictitious Asset (D) Financial Income A) Appropriation of profit. B) Financial charge. C) Fictitious Asset. D) Financial Income. Show Answer Correct Answer: A) Appropriation of profit. 14. ..... 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. 15. In Shoes factory ..... is direct material A) Wood. B) Steel. C) Leather. D) Clay. Show Answer Correct Answer: C) Leather. 16. ..... is provided in contracts to cover any likely changes in price or utilization of materials and labour. A) Escalation clause. B) Rule. C) Extra price. D) DeEscalation clause. Show Answer Correct Answer: A) Escalation clause. 17. The budgeted indirect labour hours are multiplied to indirect labour cost rate is to calculate: A) Expected total labour hours. B) Budgeted total indirect labour costs. C) Estimated total indirect labour costs. D) Budgeted total indirect labour costs. Show Answer Correct Answer: B) Budgeted total indirect labour costs. 18. 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. 19. How much the total direct and indirect cost for client 457? A) RM 3, 356.33. B) RM 3, 563.33. C) RM 5, 633.33. D) RM 6, 533.33. Show Answer Correct Answer: D) RM 6, 533.33. 20. 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. ← PreviousNext →Related QuizzesIntroduction 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 8Introduction To Cost Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books