This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which among the following is not a part of product cost? A) Direct materials. B) Direct labour. C) Selling overhead. D) Factory overhead. Show Answer Correct Answer: C) Selling overhead. 2. The relevant range is: A) The range of activity in which variable costs will be curvilinear. B) The range of activity in which fixed costs will be curvilinear. C) The range over which the company expects to operate during a year. D) Usually from zero to 100% of operating capacity. Show Answer Correct Answer: C) The range over which the company expects to operate during a year. 3. If minimum level is 3000 units and ROQ is 2000 units, what is average stock level A) 5000 units. B) 4000 units. C) 2500 units. D) 7000 units. Show Answer Correct Answer: B) 4000 units. 4. Managers need useful information in order to make decisions, to plan and to control the company. Therefore, there are three main components to consider. Which of the following is not one of those options? A) Planning. B) Organising. C) Control. D) Decision Making. Show Answer Correct Answer: B) Organising. 5. The total of all direct expenses is known as ..... A) Total cost. B) Overhead. C) Prime cost. D) Work cost.. Show Answer Correct Answer: C) Prime cost. 6. Job costing is used in A) Chemical manufacturing. B) Printing press. C) Brick making. D) Cement production. Show Answer Correct Answer: B) Printing press. 7. Which statement is true about the treatment of abnormal loss? A) Value is credited to process loss a/c. B) Scrap value is credited to process loss a/c. C) Balance in abnormal loss a/c is transferred to costing profit & loss a/c. D) None of these. Show Answer Correct Answer: C) Balance in abnormal loss a/c is transferred to costing profit & loss a/c. 8. Telephone expense is A) Fixed. B) Variable. C) Semi-variable. D) None of the above. Show Answer Correct Answer: C) Semi-variable. 9. The total of the materials subsidiary ledger inventory cards must be equal to the amount in the following account: A) Cost of Goods Sold. B) Purchases of Raw Materials. C) Materials Inventory. D) Work-in-process Inventory. Show Answer Correct Answer: C) Materials Inventory. 10. Small tools purchased are A) Charged to overhead expenses at the time of purchase. B) Charged to machinery account. C) Charged to jobs during the period of purchase. D) Charged to costing Profit and Loss account. Show Answer Correct Answer: A) Charged to overhead expenses at the time of purchase. 11. In job costing, each job is the ..... A) Cost centre. B) Cost unit. C) Profit centre. D) None of these. Show Answer Correct Answer: B) Cost unit. 12. Difference between attendance time and job time is A) Job time. B) Over time. C) Idle time. D) Production time. Show Answer Correct Answer: C) Idle time. 13. A total of all the direct costs is known as A) Cost of production. B) Cost of sales. C) Prime cost. D) Works cost. Show Answer Correct Answer: C) Prime cost. 14. A company manufactured 500, 000 units of product at a cost of P2, 500, 000. They sold 400, 000 units for P10 each. What is the gross profit? A) P2, 000, 000. B) P4, 000, 000. C) P2, 500, 000. D) P5, 000, 000. Show Answer Correct Answer: A) P2, 000, 000. 15. The Information obtained from cost accounts is A) Total cost. B) Per unit cost. C) Total & Per unit Cost. D) All of above. Show Answer Correct Answer: D) All of above. 16. Is the process of monitoring the company's operations A) Motivating. B) Planning. C) Supervising. D) Controlling. Show Answer Correct Answer: D) Controlling. 17. Job order costing would be most appropriate for which of the following industries? A) Food Processing. B) Custom Home building. C) Paper production. D) Oil refining. Show Answer Correct Answer: B) Custom Home building. 18. If normal output of A process is 1000 units and abnormal wastage is 20 units then the actual output of the process will be A) 1000 units. B) 1020 units. C) 980 units. D) 800 units. Show Answer Correct Answer: C) 980 units. 19. Work done on contract and approved by architect or engineer of the contractee is called A) Work in progress. B) Work uncertified. C) Work certified. D) None of these. Show Answer Correct Answer: C) Work certified. 20. Which of the following would not be an example of a value-added activity? A) Timely delivery of products. B) Offering the customer a variety of products. C) Storage of finished products. D) Excellent customer service. Show Answer Correct Answer: C) Storage of finished products. ← 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