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Cost and management accounting

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Audit fees paid to auditors is part of

a)

Administration Cost

b)

Production cost

c)

Selling & Distribution cost

d)

Not shown in cost sheet

2.

Which of these is not an objective of Cost Accounting?

a)

Ascertainment of Cost

b)

Determination of Selling Price

c)

Cost Control and Cost reduction

d)

Assisting Shareholders in decision making

3.

Fixed cost is a cost:

a)

Which changes in total in proportion to changes in output

b)

Which is partly fixed and partly variable in relation to output

c)

Which do not change in total during a given period despise changes in output

d)

Which remains same for each unit of output

4.

Sunk costs are:

a)

relevant for decision making

b)

Not relevant for decision making

c)

cost to be incurred in future

d)

A.   future costs

5.

Salary paid to factory store staff is part of:

a)

Factory overheads

b)

Production Cost

c)

Direct Employee cost

d)

Direct Material Cost

6.

Overhead refers to:

a)

Direct or Prime Cost

b)

All Indirect costs

c)

Only Factory indirect costs

d)

Only indirect expenses

7.

Canteen expenses for factory workers are part of:

a)

Factory overhead

b)

Administration Cost

c)

Marketing cost

d)

None of the above

8.

A profit centre is a centre

a)

Where the manager has the responsibility of generating and maximising profits

b)

Which is concerned with earning an adequate Return on Investment

c)

Both of the above

d)

Which manages cost

9.

Marginal costs is taken as equal to

a)

Prime Cost plus all variable overheads

b)

Prime Cost minus all variable overheads

c)

Variable overheads

d)

None of the above

10.

Which cost is more useful for decision making?

a)

Marginal cost

b)

Fixed cost

c)

Total cost

d)

Opportunity cost

11.

Which of the following formula cannot be used for calculating the P/V ratio?

a)

(Sales value minus variable cost) / Sales value

b)

(Fixed cost plus profit)/Sales value

c)

Change in profits/Change in sales

d)

Profit/Sales value

12.

Which of the following formula cannot be used for calculating the contribution

a)

Fixed cost plus profit

b)

Fixed cost minus loss

c)

Sales minus variable cost

d)

Fixed cost plus loss

13.

Which of the following costs tire treated as product cost under variable costing:

a)

Only direct costs

b)

Only variable production costs

c)

Only material and labour costs

d)

All variable and fixed manufacturing costs

14.

The margin of safety can be calculated using the formula

a)

Total sales – Break-even sales

b)

Fixed cost - P/V ratio

c)

P/V ratio - Profit

d)

Fixed cost - Contribution

15.

Composite cost unit for a hospital is:

a)

Per patient

b)

Per patient-day

c)

Per day

d)

Per bed

16.

Cost of diesel and lubricant is an example of:

a)

Operating cost

b)

Fixed charges

c)

Semi-variable cost

d)

None of the above

17.

Cost units used in power sector is:

a)

Kilo meter (K.M)

b)

Kilowatt-hour (kWh)

c)

Number of electric points

d)

Number of hours

18.

Absolute Tonne-km. is an example of:

a)

Composite units in power sector

b)

Composite unit of transport sector

c)

Composite unit for bus operation

d)

Composite unit for oil and natural gas

19.

In Toll Road costing, the repetitive costs includes:

a)

Maintenance cost

b)

Annual operating costs

c)

None of the above

d)

Both (a) and (b)

20.

BOT approach means:

a)

Build, Operate and Transfer

b)

Buy, Operate and Transfer

c)

Build, Operate and Trash

d)

Build, Own and Trash