This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Notional profit is computed as ..... A) Work certified + Work uncertified. B) Work in progress-Work uncertified. C) Contract price-estimated total cost. D) Work in progress-cost of work to date. Show Answer Correct Answer: D) Work in progress-cost of work to date. 2. Which of the following statements is not true about job costing? A) Production always against customers' orders. B) Cost of each job ascertained separately. C) Job is of equal or longer duration compared to contracts. D) Job work is labour intensive. Show Answer Correct Answer: C) Job is of equal or longer duration compared to contracts. 3. Differential cost is the difference in A) Fixed costs for two levels of output. B) Variable costs for two levels of production. C) Total costs for two levels of output. D) Fixed cost and revenue. Show Answer Correct Answer: C) Total costs for two levels of output. 4. The Drive 'n Go Motors sells used cars. Inventory is continuously updated as vehicles are purchased and sold. What type of Inventory control system does Drive 'n Go use? A) Perpetual Inventory. B) Periodic Inventory. C) Product Inventroy. D) Profitable Inventory. Show Answer Correct Answer: A) Perpetual Inventory. 5. Loss on incomplete contract is transferred to ..... account. A) Work in progress. B) Contract. C) Profit and loss. D) Contractee's. Show Answer Correct Answer: C) Profit and loss. 6. Which of the following items is not included in (charged to) factory overhead? A) Factory depreciation and supplies. B) Costs of service departments. C) Costs of marketing departments. D) Costs of maintenance departments. Show Answer Correct Answer: C) Costs of marketing departments. 7. "Accounting information must be presented to the users in time to fulfil their decision making needs" . This statement is referring to which characteristic of useful managerial accounting information? A) Accuracy. B) Cost effectiveness. C) Relevance. D) Timeliness. Show Answer Correct Answer: D) Timeliness. 8. Which ONE is PRODUCTION OVERHEAD Cost? A) Administrative salary. B) Salesman Commission. C) Indirect labour. D) Office Utilities. Show Answer Correct Answer: C) Indirect labour. 9. The main purpose of cost Accounting is to ..... A) Maximize profits. B) Help in inventory. C) Provide information to management for decision making. D) Aid in the fixation of Selling price. Show Answer Correct Answer: C) Provide information to management for decision making. 10. ..... is in relation to which cost may be ascertained or expressed A) Cost Unit. B) Cost Center. C) Cost Object. D) Cost. Show Answer Correct Answer: A) Cost Unit. 11. Which of the following is not an avoidable cause of labour turnover: A) Dissatisfaction with Job. B) Lack of training facilities. C) Low wages and allowances. D) Disability, making a worker unfit for work. Show Answer Correct Answer: D) Disability, making a worker unfit for work. 12. Total direct labour cost is RM56, 450. Total direct labour hour is 480 hours. What is the direct cost per unit? A) RM 177.54. B) RM 117.54. C) RM 117.60. D) RM 711.54. Show Answer Correct Answer: C) RM 117.60. 13. An example of prime cost is: A) Supervisory cost. B) Insurance on purchases. C) Depreciation of office equipment. D) Lighting and power. Show Answer Correct Answer: B) Insurance on purchases. 14. Unit cost A) Cost of a unit. B) Direct material and direct labour per unit. C) Total expenditure incurred by a company to produce one unit of a particular product. D) Total expenditure incurred by a company to produce, store, and sell one unit of a particular product. Show Answer Correct Answer: D) Total expenditure incurred by a company to produce, store, and sell one unit of a particular product. 15. ..... is the wide term A) Cost. B) Cost Accounting. C) Cost Accountancy. D) Costing. Show Answer Correct Answer: C) Cost Accountancy. 16. ..... is the smallest segment of activity or area or responsibility for which costs are accumulated. A) Cost object. B) Cost center. C) Cost driver. D) Non of these. Show Answer Correct Answer: B) Cost center. 17. Expired costs are called A) Fixed. B) Costs. C) Expenses. D) Profit. Show Answer Correct Answer: C) Expenses. 18. The wages of the factory janitorial staff should be classified as: A) Factory overhead cost. B) Direct labor cost. C) Period cost. D) Prime cost. Show Answer Correct Answer: A) Factory overhead cost. 19. Which of the following costs is recorded on the job cost sheet? A) Direct materials cost. B) Direct labor cost. C) Manufacturing overhead cost. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Break-down of machinery, strike, lock-outs come under ..... idle time A) Idle. B) Not idle. C) Abnormal. D) Normal. Show Answer Correct Answer: C) Abnormal. ← 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