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Cost Accounting

Total questions: 25

Worksheet time: 8mins

Name
Class
Date
1.

Which method is used in hospitals for determining cost?

a)

Job costing

b)

Unit costing

c)

Operating costing

d)

Process costing

2.

Which of the following statements are correct.


a. Prime cost is the total of direct wages and variable overheads.

b. Abnormal cost is uncontrollable.

c. Contract costing method is used in ship building.

d. Cost accounting is a techinique of managerial control.

a)

All statements are correct

b)

Statements A , C & D are correct

c)

Except statement 'C' is correct

d)

Only statements 'C' & 'D' are correct

3.

Choose the correct statements among the following;


a. Spoilage can be rectified

b. Defectives cannot be corrected

c. Scrap is always invisible

d. Waste is having small saleable value

a)

Statements A & C are correct

b)

None of the above

c)

Statements B & D are correct

d)

All of the above

4.

Prime cost =

a)

Indirect materials + Indirect labour + Indirect expenses

b)

Total material + Total labour + Other expenses

c)

Total cost + selling costs + distribution costs

d)

Direct material + Direct labour + Direct expenses

5.
Cost Accounting is...
a)
the recording of all the costs incurred in a business
b)
the recording of all the expenses incurred in a business
c)
the recording of all the direct costs incurred in a business
d)
the recording of all the revenue incurred in a business
6.
Costs that possess characteristics of both fixed and variable cost are called...
a)
Semi-variable cost
b)
Step cost
c)
variable cost
d)
fixed cost
7.

Which of the following is specific order costing method

a)

Job costing

b)

Process costing

c)

operating costing

d)

target costing

8.

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

9.

Costs that remain the same in total regardless of changes in the activity level.

a)

Variable Cost

b)

Fixed Cost

c)

Relevant Cost

d)

Sunk Cost

10.

Cost that cannot be changed by any present and future decision, therefore irrelevant cost.

a)

Variable Cost

b)

Fixed Cost

c)

Sunk Cost

d)

Relevant Cost

11.

Direct labor + Factory Overhead

a)

Conversion Cost

b)

Prime Cost

c)

Manufacturing Cost

d)

None of the answer

12.
Cost unit is calculated as
a)
Total Expense/Quantity
b)
Quantity/Total Cost
c)
Total Cost/Quantity
d)
Quantity/Total Expense
13.
Total Variable Cost is ____________ Production
a)
inversely proportional to
b)
equal to
c)
half of
d)
proportional to
14.

Cost accounting includes

a)

classifying, recording and appropriate allocation of expenditure for products

b)

classifying, recording and appropriate allocation of expenditure for services

c)

classifying, recording and appropriate allocation of expenditure for products and services

d)

none of these

15.

Process whereby cost items are charged direct to a cost unit or cost center is known as

a)

Cost accounting

b)

Cost allocation

c)

Cost apportionment

d)

Cost absorption

16.

Which of the following is example of cost allocation

a)

Electricity charges can be allocated to various departments if separate meters are installed

b)

Salary of stores clerk can be allocated to stores department

c)

Electricity charges on the basis of no. of light points or Area or Units of Sub-meter in each Department

d)

none of these

17.

General overhead is apportioned to departments on the basis of------

a)

direct wages

b)

number of employees

c)

floor area

d)

direct matterials

18.

bad debts is an example of-------

a)

factory OH

b)

administration OH

c)

selling OH

d)

distribution OH

19.

overhead means-----

a)

the aggregate of indirect materials, indirect labour, and indirect expenses

b)

all expenses with respect to materials

c)

all expenses with respect to labour

d)

all indirect expenses

20.

standing charges are also known as-----expenses

a)

variable

b)

semi-variable

c)

fixed

d)

semi-fixed

21.

Cost accounting mainly helps the management in

a)

Earning profit

b)

Fixing prices of the products

c)

Providing information to management

d)

Providing Financial Position

e)

all the above

22.

cost accounting is helpful for...

a)

preparation of quotations

b)

preparation of p & l account

c)

preparation of balance sheet

d)

preparation of trial balance

23.

1. Cost accounting provides all of the following information except

a)

Cost of goods sold

b)

Product cost

c)

Inventory values

d)

Cash forecasts

24.

is cost accounting is an expensive

a)

yes

b)

no

c)

not sure

d)

not confirm

25.
An example of variable cost would be
a)
depreciation of factory machinery
b)
shop rent
c)
sales staff commission
d)
factory manager's salary