This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A document which consists information about labour time usage, for specific job in a specific department, is known as: A) Labour time record. B) Machine time record. C) Allocation time record. D) Production time record. Show Answer Correct Answer: A) Labour time record. 2. If the budgeted total direct labour hours are 4, 000 hours and budgeted direct labour cost is RM480, 000, then the budgeted direct labour cost rate will be: A) RM 126.32 per labour hour. B) RM 128.32 per labour hour. C) RM 120.00 per labour hour. D) RM 132.00 per labour hour. Show Answer Correct Answer: C) RM 120.00 per labour hour. 3. According to Merrick's multiple piece rate system, the piece rate applicable to a worker with an efficiency of 100 % or above is ..... of normal piece rate A) 100%. B) 110%. C) 120%. D) 150%. Show Answer Correct Answer: C) 120%. 4. Over absorption of overheads in cost accounts results in A) Decrease in costing profit. B) Increase in costing profit. C) Decrease in Financial Accounts profit. D) No effect on profits of both the accounts. Show Answer Correct Answer: A) Decrease in costing profit. 5. Cost incurred by undertakings which do not manufacture any product but services is A) Operation cost. B) Operating cost. C) Process costing. D) Batch costing. Show Answer Correct Answer: B) Operating cost. 6. Loss arising due to evaporation is considered as ..... in process accounts. A) Abnormal loss. B) Seasonal loss. C) Normal loss. D) None of these. Show Answer Correct Answer: C) Normal loss. 7. Material that is not become part of a product & can't be conveniently traced to specific product A) Expenses. B) Raw Material. C) Indirect Materials. D) Direct Material. Show Answer Correct Answer: C) Indirect Materials. 8. Which of the following statements is/are incorrect? A) Pay roll is prepared to reveal gross wages and various deductions. B) Piece wages are payment by results. C) Idle time is spent by the workers on their jobs. D) Labor turnover is due to poor working conditions of organizations. Show Answer Correct Answer: C) Idle time is spent by the workers on their jobs. 9. Purchases 600 at P4.90 eachIssuance 175Issuance 225Issuance 280Purchase 400 at P4.95 eachIssuance 310Returned materials from 280units issuance is 20 unitsWhat is the cost of ending inventory using the FIFO costing method? A) P2, 519. B) P2, 421. C) P2, 500. D) P2, 400. Show Answer Correct Answer: A) P2, 519. 10. Why management of a company need to know the cost of a product? A) To make the products famous. B) To determine the selling price. C) To determine the GST. D) To get profit. Show Answer Correct Answer: B) To determine the selling price. 11. Carol Davis has a lot of gently used Prom Dresses. Dresses for You, a consignment shop, has agreed to sell Carol's dresses on her behalf. What is Dresses for You role in the transaction? A) Lessor. B) Consignee. C) Lessee. D) Consignor. Show Answer Correct Answer: B) Consignee. 12. Describe the cost unit applicable to the Bicycle industry: A) Per part of bicycle. B) Per bicycle. C) Per tonne. D) Per day. Show Answer Correct Answer: B) Per bicycle. 13. Average cost method of valuing material issues is suitable when ..... A) Prices rise. B) Prices fall. C) Prices fluctuate considerably. D) None of these. Show Answer Correct Answer: C) Prices fluctuate considerably. 14. ..... represents that quantity of material which is normally ordered when a particular material reaches reordering level. A) Maximum level. B) Re-order level. C) Minimum level. D) Re-order quantity. Show Answer Correct Answer: D) Re-order quantity. 15. Marginal costing is useful for ..... term decision making A) Long. B) Short. C) Medium. D) None of the above. Show Answer Correct Answer: B) Short. 16. Abnormal gain in a process is written to be ..... A) Debit side of process account. B) Credit side of process account. C) Debit side of costing P & L a/c. D) None of these. Show Answer Correct Answer: A) Debit side of process account. 17. The value of abnormal loss is debited on the basis of A) Normal cost of normal output. B) Scrap value. C) Cost of production. D) None of these. Show Answer Correct Answer: A) Normal cost of normal output. 18. Variable costs increase in total due to A) Increase in sales. B) Increase in volume of production. C) Increase in profit. D) None of these. Show Answer Correct Answer: B) Increase in volume of production. 19. Labour turnover means: A) Turnover generated by labour. B) Rate of change in composition of labour force during a specified period. C) Either of the above. D) Both of the above. Show Answer Correct Answer: B) Rate of change in composition of labour force during a specified period. 20. It provides the detailed cost data that management needs to control current operations and plan for the future. A) Cost Accounting. B) Management Accounting. C) Financial Accounting. D) Financial Analysis. Show Answer Correct Answer: A) Cost Accounting. ← 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