This quiz works best with JavaScript enabled. Home > Introduction > Introduction To Cost Accounting > Introduction To Cost Accounting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Introduction To Cost Accounting Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Last in first out method is suitable in times of ..... A) Rising prices. B) Falling prices. C) Fluctuating prices. D) None of these. Show Answer Correct Answer: A) Rising prices. 2. Variable cost ..... A) Decreases with increase in production. B) Fluctuates with fluctuation in the volume of production. C) Always remains fixed. D) Increase with decrease in production. Show Answer Correct Answer: B) Fluctuates with fluctuation in the volume of production. 3. Earning per share = Profits available for equity share holders / ..... A) No. of Equity Shares. B) Opening Stock. C) Sales. D) Marginal Cost. Show Answer Correct Answer: A) No. of Equity Shares. 4. The first step in implementing target pricing and target costing is A) Choosing a target price. B) Determining a target cost. C) Developing a product that satisfies needs of potential customers. D) Performing value engineering. Show Answer Correct Answer: C) Developing a product that satisfies needs of potential customers. 5. Statement 1:The traditional role of cost accounting is to record full product cost data for external reporting.Statement 2:Direct materials plus factory overhead equals total manufacturing costs A) True; True. B) True; False. C) False; True. D) False; False. Show Answer Correct Answer: B) True; False. 6. Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as ..... A) Assets. B) Liabilities. C) Owner Equity. D) Equity. Show Answer Correct Answer: A) Assets. 7. Which of the following is NOT possess the characteristics of the good information? A) Relevant. B) Complete. C) Reliable. D) Consistency. Show Answer Correct Answer: D) Consistency. 8. It is expired costs with producing any revenue benefit. A) Cost. B) Losses. C) Expenses. D) Income. Show Answer Correct Answer: C) Expenses. 9. The production of repetitive nature can be measured in terms of units and quantity of output is suitable in ..... system A) Piece. B) Time. C) Bonus. D) Hourly. Show Answer Correct Answer: A) Piece. 10. Indirect expenses are also called ..... A) Chargeable expenses. B) Overheads. C) Secondary expenses. D) Sundry expenses. Show Answer Correct Answer: B) Overheads. 11. As current technology changes manufacturing processes, it is likely that direct ..... A) Labor will increase. B) Labor will decrease. C) Materials will increase. D) Materials will decrease. Show Answer Correct Answer: B) Labor will decrease. 12. The following are incorrect statements about cost objects ..... A) A cost object is an item whose cost is measured. B) Cost objects are activities that are usually accumulated. C) Processes cannot be cost objects. D) Strategic objectives can become cost objects. Show Answer Correct Answer: C) Processes cannot be cost objects. 13. Calculate EOQ (approx.) from the following details:Annual Consumption:24000 units Ordering cost:Rs. 10 per order Purchase price:Rs. 100 per unitCarrying cost:5% A) 310. B) 400. C) 290. D) 300. Show Answer Correct Answer: A) 310. 14. Budgeting provides all of the following except: A) Support for the management functions of planning and coordination. B) A means to communicate the organization's short-term goals to its members. C) An ethical framework for decision making. D) A means to anticipate problems. Show Answer Correct Answer: C) An ethical framework for decision making. 15. Financial accounting is concerned primarily with: A) External reporting to investors, creditors, and government authorities. B) Cost planning and cost controls. C) Profitability analysis. D) Providing information for strategic and tactical decisions. Show Answer Correct Answer: A) External reporting to investors, creditors, and government authorities. 16. What is the Break Even Percentage if the Margin of Safety is 60% A) 0%. B) 60%. C) 40%. D) 100%. Show Answer Correct Answer: C) 40%. 17. The main object of Cost Accounting is ..... A) To record day-to-day transactions of the business. B) To reveal managerial efficiency. C) To ascertain true cost of product & services. D) To determine tender price. Show Answer Correct Answer: C) To ascertain true cost of product & services. 18. Economic order quantity is that quantity at which cost of holding and carrying inventory is: A) Maximum and equal. B) Minimum and equal. C) It can be maximum or minimum depending upon case to case. D) Minimum and unequal. Show Answer Correct Answer: B) Minimum and equal. 19. Material control does not cover the following stage. A) Purchase of materials. B) Storing of materials. C) Issue of materials. D) Production. Show Answer Correct Answer: D) Production. 20. The following are the inventories of a manufacturing company, except ..... A) Direct materials inventory. B) Work-in-process inventory. C) Merchandise inventory. D) Finished-goods inventory. Show Answer Correct Answer: C) Merchandise inventory. ← PreviousNext →Related QuizzesIntroduction QuizzesIntroduction To Cost Accounting Quiz 1Introduction To Cost Accounting Quiz 2Introduction To Cost Accounting Quiz 3Introduction 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