This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Materials issue are priced by dividing the total cost of material in stock by the total quantity of materials is called ..... method A) Simple average price. B) Weighted average price. C) Specific price. D) Standard price. Show Answer Correct Answer: B) Weighted average price. 2. Under which method both the number of workers left/discharged and the number of workers replaced during the period are considered A) Replacement. B) Flux. C) Labour cost. D) Seperation. Show Answer Correct Answer: B) Flux. 3. Calculate cost per machine hour for 3FSB. A) RM 10.00. B) RM 20.00. C) RM 30.00. D) RM 40.00. Show Answer Correct Answer: B) RM 20.00. 4. The transfering of work from a specific area of the company ( e.g. accounting, manufacturing) to an outside supplier, which can be done to a company that is located in the home country or anywhere else is called ..... A) Offshoring. B) Outsourcing. C) Globalization. D) None of above. Show Answer Correct Answer: B) Outsourcing. 5. Re-ordering level = Maximum consumption x ..... A) Average re-order period. B) Maximum usage. C) Maximum re-order period. D) Normal usage. Show Answer Correct Answer: C) Maximum re-order period. 6. Which of the following expenses is not operating expenses A) Advertisement. B) Finance Expenses. C) Salaries. D) Loss on sale of old furniture. Show Answer Correct Answer: D) Loss on sale of old furniture. 7. Factory overheads do not include the following: A) Depreciation on manufacturing equipment. B) Labour of wage workers who manufacture the goods. C) Rent of the administrative department. D) Salary of the factory manager. Show Answer Correct Answer: B) Labour of wage workers who manufacture the goods. 8. What does FIFO mean? A) Finished Stock in Finished stock out. B) First In First Out. C) Final Input Final Output. D) Fabrications Inward Fabrications Outward. Show Answer Correct Answer: B) First In First Out. 9. How much is the selling and administration cost for Client 457? A) RM 980.00. B) RM 970.00. C) RM 950.00. D) RM 990.00. Show Answer Correct Answer: A) RM 980.00. 10. Fancy packing is an example of ..... expenses. A) Selling. B) Distribution. C) Administrative. D) Factory. Show Answer Correct Answer: A) Selling. 11. If an overhead cost of operating a machine is RM1, 000, 000 for 200, 000 hours, then the cost allocation rate will be: A) RM 3.00 per machine hour. B) RM 4.00 per machine hour. C) RM 5.00 per machine hour. D) RM 6.00 per machine hour. Show Answer Correct Answer: C) RM 5.00 per machine hour. 12. A company has to pay RM10, 000 per unit royalty to the designer of a product which it manufactures and sells. The royalty charge would be classified as a A) Direct expense. B) Production overhead. C) Administrative overhead. D) Selling overhead. Show Answer Correct Answer: A) Direct expense. 13. Loss of material due to fire is treated as A) An overhead. B) Direct expenses. C) Normal Loss. D) Abnormal Loss. Show Answer Correct Answer: D) Abnormal Loss. 14. Cost accounting plays little role in ..... A) Determine interest costs that can be capitalized. B) Create and execute operating budgets. C) Establish the cost method in controlling activities. D) Determine the company's costs and profits in a period. Show Answer Correct Answer: A) Determine interest costs that can be capitalized. 15. Indicate which of the following fall under the category methods of costing- A) Standard costing. B) Marginal costing. C) Processscosting. D) None of these. Show Answer Correct Answer: C) Processscosting. 16. A cost which is unaffected in total by increases or decreases in the volume of output is called A) Stepped-cost. B) Variable cost. C) Semi-variable. D) Fixed cost. Show Answer Correct Answer: D) Fixed cost. 17. A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a A) Variable cost. B) Fixed cost. C) Period cost. D) Product cost. Show Answer Correct Answer: B) Fixed cost. 18. In job costing, the basic document to accumulate and ascertain the cost of each order is A) Purchase order. B) Requisition sheet. C) Invoice. D) Job cost sheet. Show Answer Correct Answer: D) Job cost sheet. 19. Which of the following costs is not a product cost? A) Depreciation on the plant installed in the factory. B) The electricity cost of the office of factory foreman. C) The cost of shipping finished products to customers. D) The cost of fuel used in the factory. Show Answer Correct Answer: C) The cost of shipping finished products to customers. 20. Which of the following descriptors refers to management accounting information? A) It is verifiable and reliable. B) It is driven by rules. C) It is prepared for shareholders. D) It provides reasonable and timely estimates. Show Answer Correct Answer: D) It provides reasonable and timely estimates. ← PreviousNext →Related QuizzesIntroduction QuizzesIntroduction To Cost Accounting Quiz 1Introduction To Cost Accounting Quiz 2Introduction 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