This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under Merrick's Differential piece rate system, if the efficiency of a worker is more than 83% but up to 100%, then the applicable piece rate is ..... A) Ordinary piece rate. B) 105% of ordinary piece rate. C) 110 % of ordinary piece rate. D) 120 % of ordinary piece rate. Show Answer Correct Answer: C) 110 % of ordinary piece rate. 2. What is a cost unit? A) Cost of a product or services. B) Expenditure. C) A quantitative units of product or service to which costs can be related. D) Cost per unit. Show Answer Correct Answer: C) A quantitative units of product or service to which costs can be related. 3. Derek Paulate worked 46 hours in one week at a rate of P45 an hour. He is paid one and a half times the regular rate for hours worked in excess of 40. What is the gross earnings of Derek Paulate? A) P2, 205. B) P2, 070. C) P2, 340. D) P1, 800. Show Answer Correct Answer: A) P2, 205. 4. Compute the conttribution margin for David 18 Factory if the following data is given:Variable Selling and distribution 24 500Cost of good sold (COGS)RM197 500Sales 15 000 unitSales price Rm18 A) Rm48 000. B) Rm48 500. C) Rm97 000. D) Rm97 500. Show Answer Correct Answer: A) Rm48 000. 5. Litres were used to ascertain cost of ..... A) Sugar. B) Flour. C) Cooking oil. D) Petrol. Show Answer Correct Answer: D) Petrol. 6. Total cost of a product:Rs. 10, 000 Profit:25% on Selling Price Profit is: A) Rs. 2, 500. B) Rs. 3, 000. C) Rs. 3, 333. D) Rs. 2, 000. Show Answer Correct Answer: C) Rs. 3, 333. 7. In electricity supply company uses ..... as cost unit. A) Kilo watt hour. B) Per household. C) Voltage. D) None of above. Show Answer Correct Answer: A) Kilo watt hour. 8. A persons who are directly involved in the production of a good. A) Direct material. B) Indirect material. C) Direct labour. D) Indirect labour. Show Answer Correct Answer: C) Direct labour. 9. The nature of financial accounting is: A) Historical. B) Forward-looking. C) Analytical. D) Social. Show Answer Correct Answer: A) Historical. 10. Which of the following document is used for issuing materials to different production department? A) Material requisition. B) Purchase requisition. C) Purchase order. D) None of above. Show Answer Correct Answer: A) Material requisition. 11. Which is true about process costing? A) Production takes long duration. B) Each output is customer specific. C) Production is done in lots/ batches. D) Production is continuous. Show Answer Correct Answer: D) Production is continuous. 12. The number of units in the sales budget and the production budget may differ because of a change in: A) Sales returns and allowances. B) Direct material inventory levels. C) Overhead charges. D) Finished goods inventory levels. Show Answer Correct Answer: D) Finished goods inventory levels. 13. ..... is location, person or item of equipment for which cost may be ascertained. A) Cost Unit. B) Cost center. C) Cost Object. D) Costing. Show Answer Correct Answer: B) Cost center. 14. Interest on capital invested is an example of ..... A) Setting up cost. B) Carrying cost. C) Ordering cost. D) Manufacturing cost. Show Answer Correct Answer: B) Carrying cost. 15. A variable cost in total A) Increases as output increases and decreases as output decreases. B) Increases as output increases and/or decreases. C) Remains constant no matter the level of output. D) Increases as output decreases and decreases as output increases. Show Answer Correct Answer: A) Increases as output increases and decreases as output decreases. 16. As volume increases, average cost per unit A) Decrease. B) Remain constant. C) Increase. D) Increases in proportion to the change in volume. Show Answer Correct Answer: A) Decrease. 17. Which the items below is non-controllable by the head of the production department? A) Direct labour working hours. B) Insurance of machinery. C) Types of material used in production. D) Price of material paid to supplier. Show Answer Correct Answer: D) Price of material paid to supplier. 18. Prime Cost + Conversion Cost A) Manufacturing Cost. B) Conversion Cost. C) Prime Cost. D) None of the answer. Show Answer Correct Answer: D) None of the answer. 19. Mixed cost is also known as: A) Double cost. B) Semi variable cost. C) Fluctuating cost. D) Full cost. Show Answer Correct Answer: B) Semi variable cost. 20. Nic Company consumed P450, 000 worth of direct materials during May 2020. At the end of the month, the direct materials inventory was P25, 000 lower than the May 1 inventory. How much is the direct materials purchased during May 2020? A) P475, 000. B) 375, 000. C) 400, 000. D) 425, 000. Show Answer Correct Answer: D) 425, 000. ← 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