This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a variable cost in an insurance company? A) Office space rental fee. B) Property taxes. C) Salary of the company president. D) Sales commissions. Show Answer Correct Answer: D) Sales commissions. 2. ..... labour cost is the remuneration paid to the employees who are directly engaged in the manufacturing operations A) Direct. B) Indirect. C) Normal. D) Abnormal. Show Answer Correct Answer: A) Direct. 3. Can we plan, control and reduce cost with cost accounting A) Yes. B) No. C) May be. D) Not sure. Show Answer Correct Answer: A) Yes. 4. Loss which is unavoidable on account of the nature of the material is called ..... A) Uncontrolled. B) Normal. C) Abnormal. D) None of these. Show Answer Correct Answer: B) Normal. 5. Effective planning of fixed overhead costs includes all of the following EXCEPT: A) Choosing the appropriate level of capacity. B) Eliminating nonvalue-adding costs. C) Redesigning products to use fewer resources. D) Redesigning the plant layout for more efficient processing. Show Answer Correct Answer: A) Choosing the appropriate level of capacity. 6. Direct labor + Factory Overhead A) Conversion Cost. B) Prime Cost. C) Manufacturing Cost. D) None of the answer. Show Answer Correct Answer: A) Conversion Cost. 7. An over allocated direct cost is also called EXCEPT: A) Over applied direct cost. B) Over budgeted direct cost. C) Over assigned direct cost. D) Over absorbed direct cost. Show Answer Correct Answer: B) Over budgeted direct cost. 8. Beginning finished goods inventory + Cost of Goods Manufactured-Ending finished goods inventory = A) Purchases. B) Work in Process End. C) Work in Process, Beg. D) Cost of Good Sold. Show Answer Correct Answer: D) Cost of Good Sold. 9. What direct labour cost would be traced to client 457 if Siti Aafiyah works 1 week (5 days) to prepare client 457's financial statements? A) RM 3, 333.33. B) RM 5, 333.33. C) RM 3, 533.33. D) RM 3, 363.33. Show Answer Correct Answer: B) RM 5, 333.33. 10. The information provided by financial statements is ..... in nature. A) Standard. B) Marginal. C) Historical. D) Uniform. Show Answer Correct Answer: C) Historical. 11. Sales-Php100, 000, VC-Php80, 000, Fixed Cost-Php10, 000. How much is Operating Leverage A) 1. B) 2. C) 0.5. D) 2.5. Show Answer Correct Answer: B) 2. 12. Replacement price method is A) The current purchase price of material is charged on the issues. B) The current market price of material is charged on the issues. C) The old market price of material is charged on the issues. D) The cost price of the material is charged on the issues. Show Answer Correct Answer: B) The current market price of material is charged on the issues. 13. The purpose of financial accounting is to provide information for ..... A) Assessing the profitability and financial position of the firm. B) Fixing prices. C) Locating factors leading to wastages and losses. D) Cost control. Show Answer Correct Answer: A) Assessing the profitability and financial position of the firm. 14. The benefit given up when one alternative is chosen over another. A) Standard Cost. B) Differential Cost. C) Opportunity Cost. D) Standard Cost. Show Answer Correct Answer: C) Opportunity Cost. 15. ..... is used primarily for control of spare parts. A) ABC Analysis. B) JIT Inventory System. C) VED Analysis. D) Perpetual Inventory System. Show Answer Correct Answer: C) VED Analysis. 16. Which of the following statements is NOT true about contract costing? A) Number of contracts undertaken at a time is limited. B) Work is done at the site of the customer. C) Requires long period for completion. D) Indirect costs are higher as compared to job costing. Show Answer Correct Answer: D) Indirect costs are higher as compared to job costing. 17. According to CIMA, England, "the technique and process of ascertaining cost" is called A) Cost. B) Costing. C) Cost accounting. D) Cost accountancy. Show Answer Correct Answer: B) Costing. 18. Based on historical transaction data. A) Financial Accounting. B) Managerial Accounting. C) Cost Accounting. D) Job Order Costing. Show Answer Correct Answer: A) Financial Accounting. 19. Which of the following items is not included in factory overhead? A) Factory depreciation and supplies. B) Costs of Marketing departments. C) Costs of Maintenance departments. D) Costs of service departments. Show Answer Correct Answer: B) Costs of Marketing departments. 20. Merchandise Inventory is on the income statement as: A) A revenue item. B) A component in the calculation of Cost of Goods Sold. C) A current liability. D) A current asset. Show Answer Correct Answer: B) A component in the calculation of Cost of Goods Sold. ← PreviousNext →Related QuizzesIntroduction QuizzesIntroduction To Cost Accounting Quiz 1Introduction 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 9Introduction To Cost Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books