This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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) Rm68.50. B) Rm55.50. C) Rm60.50. D) Rm66.00. Show Answer Correct Answer: A) Rm68.50. 3. 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. 4. Fixed cost per unit decreases when ..... A) Production volume increases. B) Production volume decrease. C) Variable cost per unit decreases. D) Variable cost per unit increases. Show Answer Correct Answer: A) Production volume increases. 5. $ \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. 6. For a manufacturing sector company, the cost of factory depreciation is classified as a ..... A) Direct material cost. B) Direct manufacturing labor cost. C) Manufacturing overhead cost. D) Period cost. Show Answer Correct Answer: C) Manufacturing overhead cost. 7. 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. 8. A common starting point in the budgeting process is A) Expected future net income. B) Past performance. C) To motivate the sales force. D) A clean slate, with no expectations. Show Answer Correct Answer: B) Past performance. 9. 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 25.00 per unit. B) RM 15.67 per unit. C) RM 16.67 per unit. D) RM 23.33 per unit. Show Answer Correct Answer: D) RM 23.33 per unit. 10. Is the assignment of accountability for costs or production results A) Responsibility Accounting. B) Cost Accounting. C) Management Accounting. D) Financial Accounting. Show Answer Correct Answer: A) Responsibility Accounting. 11. What is POAR? A) Pre-determine overide absorption rate. B) Pre-determine overdue allocation rate. C) Pre-determine overhead absorption rate. D) Pre-determine overhead assumption rate. Show Answer Correct Answer: C) Pre-determine overhead absorption rate. 12. 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. 13. 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 labor. B) Direct materials. C) Indirect labor. D) Indirect materials. Show Answer Correct Answer: C) Indirect labor. 14. . Economic order quantity is a tool for controlling ..... A) Inventory. B) Cost. C) Price. D) Machinery. Show Answer Correct Answer: A) Inventory. 15. Room/day is the cost unit used in ..... A) Hotels. B) Hospitals. C) Schools. D) None of the above. Show Answer Correct Answer: A) Hotels. 16. Portia Company predicts that 64, 000 units of materials will be used during the year. It is anticipated that it will cost P 40.00 to place each order. The annual carrying cost is P2.00. What is the most economical order quantity? A) 2, 560, 000. B) 1, 131. C) 1, 600. D) 6, 400. Show Answer Correct Answer: C) 1, 600. 17. Stock verification sheets are maintained to record the results of ..... A) Physical verification. B) Financial control. C) Financial verification. D) Quality verification. Show Answer Correct Answer: A) Physical verification. 18. The following information pertains to Luccas Company:Budgeted sales P1, 000, 000; Breakeven sales P700, 000; Budgeted contribution margin P600, 000. The margin of safety is: A) P300, 000. B) P400, 000. C) P500, 000. D) P600, 000. Show Answer Correct Answer: A) P300, 000. 19. If a company is operating at a loss, A) Fixed costs are greater than sales. B) Selling price is less than average total cost per unit. C) Selling price is lower than variable cost per unit. D) Fixed cost per unit is greater than variable cost per unit. Show Answer Correct Answer: B) Selling price is less than average total cost per unit. 20. Which of the following are manufacturing costs? A) Overhead and marketing costs. B) Direct raw material costs and direct labor costs. C) Administrative and direct labor costs. D) Marketing and administrative costs. Show Answer Correct Answer: B) Direct raw material costs and direct labor costs. ← 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