Cost Accounting MCQs from 2013
to 2023
Dibrugarh University BCOM 4th
SEM CBCS Pattern
2023
1. (a) Fill in the blanks: 1x4=4
(1) A _______ is a device for the purpose of
breaking up costs into smaller subdivisions.
Ans: Cost
Unit
(2) _______
level is the level above which stocks are not allowed to rise.
Ans: Maximum
Level
(3) Costs
that contain both fixed and variable elements are known as _______ costs.
Ans: Semi
variable
(4) Under
Job Costing, each job or order is given a ______
Ans: Unique
identity number or Job number
(b) Write True or False: 1x4=4
(1)
Opportunity cost is the cost of opportunity lost.
Ans: True
(2) Labour
turnover is harmful and costly.
Ans: True
(3) All
direct costs are termed as overhead.
Ans: False,
Indirect cost
(4) In
Contract Costing, materials purchased or supplied from the stores shall be
credited to Contract A/c.
Ans: False,
Debit
2022
1. (a) Indicate which of the following
statements are True or False: 1x4=4
(1) Cost
Accounting is the oldest branch of accounting.
Ans: False,
Financial Accounting
(2) Purchase
order is prepared by the purchasing department.
Ans: True
(3) Fixed
overhead cost is a committed cost.
Ans: True
(4) Process
Costing is ordinarily applied where all the operations are performed in one
department.
Ans: False
(b) Fill in the blanks: 1x4=4
(1) Out of
pocket costs involve payment to _______.
Ans: The
outsiders
(2) Labour
once lost cannot be _______.
Ans:
recouped and is bound to increase the cost of production.
(3) Any
expenditure over and above prime cost is known as _______.
Ans: Overheads
(4) The need
of reconciliation arises in _______ accounting system.
Ans: Non-Integrated
Accounting System
2019
1. (a) Choose the correct answer: 1x4=4
1. Prime
cost includes
a) Direct
material + Direct labour + Works expenses.
b) Direct
material + Direct labour + Chargeable expenses.
c) Direct
material + Direct labour + Office expenses.
Ans: b)
Direct material + Direct labour + Chargeable expenses.
2. Purchase
budget should be prepared by the
a) Financial
Manager.
b) Production
Manager.
c) Purchase
Manager.
Ans: c)
Purchase Manager.
3. Depreciation
is a
a) Fixed
expenses.
b) Variable
expenses.
c) Semi-variable
expenses.
Ans: a)
Fixed expenses.
4. In
process costing, the abnormal loss is treated as
a) Period
cost.
b) Unit
cost.
c) Future
cost.
Ans: a)
Period cost.
(b) Fill in the blanks: 1x4=4
1. Fixed
cost per unit _____________ with rise in output.
Ans: Decreases
2. Re-order
quantity may be measured in_______.
Ans: Units
3. Fixed
overhead cost is a _______ cost.
Ans: Period
4. The need
of reconciliation arises in______________.
Ans: Non-integrated
accounting system
2018
New Course
1. (a) Fill in the
blanks: 1x4=4
a) Fixed cost per unit decreases when volume of
production increases.
b) In printing industries, the
method of process costing is
applied.
c) In process costing, the
output of each process in the input
of the next process.
d) In Cost Accounting, overheads are the combination of
indirect material, indirect labour and indirect expenses.
(b) Choose and
write the correct
answer: 1x4=4
a) Under the ABC analysis of
material control, A stands for low value/moderate value/high value items.
b) In a chemical industry, the
method of process costing/contract
costing is applied.
c) Variable overhead cost is a period
cost/an output cost.
d) Cost of abnormal idle time
and overtime is transferred to costing
Profit and Loss Account/General Profit and Loss Account.
Old course
1. (a) Fill in the
blanks: 1x4=4
a) Prime Cost are the combination of direct material, direct
labour and direct expenses.
b) Fixed cost per unit decreases when volume of
production increases.
c) In Cost Accounting,
depreciation is the indirect
expenses.
d) In process costing, the
output of each process is the input
of the next process.
(b) Choose and write the correct
answer: 1x4=4
a) Variable cost per unit remains same/increases/decreases
due to increase in production.
b) Rent of factory building is
a variable cost/fixed cost/semi-variable
cost.
c) A high labour turnover increases/decreases the cost of
production.
d) Standard costing is a
method/technique of Cost
Accounting.
2017
1.
(a) Fill in the
blanks: 1x4=4
a) Cost which can be charged to
a particular unit of cost is considered as product
cost.
b) Reorder quantity may be
measured in units or value.
c) Under the Halsey plan Bonus is a fixed percentage.
d) The basis of apportionment
for indirect wages is direct labour.
(b) Choose and write the correct
answer: 1x4=4
a) In a printing industry, job
costing/process costing is
applied.
b) The sum of direct material
cost and direct labour cost is termed as
prime cost/overhead.
c) Tender form is issued by the
purchasing department/production
department.
d) Vacation pay for factory
workers should be charged to factory
overhead/direct labour.
Old Course
1. (a) Choose the correct
answer: 1x4=4
a) Fixed cost per unit decreases/increases with rise in
output.
b) For EOQ, Q stands for
quality/quantity.
c) Under the Rowan plan, bonus
is a fixed/variable percentage.
d) Bases of factory rent
apportionment are floor area/direct
expenses.
(b) Fill in the
blanks: 1x4=4
a) In an oil industry, Process costing method is
applied.
b) The perpetual inventory
system means a continuous
stock-taking system.
c) In process costing, costs
are calculated at the end of each process.
d) Overheads are the sum of indirect material,
indirect labour and indirect expenses.
2016
New
course
1.
(a) Choose the correct answer: 1x4=4
a) The method of costing used
in a refinery is process costing/job
costing.
b) The practice of
charging all costs to product is absorption
costing/batch costing.
c) Administration expenses
are mostly fixed/variable.
d) Variable cost per unit
remains same/increases when
the volume of production increases.
(b)
Fill in the blanks: 1x4=4
a) Fixed cost per unit decreases with rise in output
and increases with fall in
output.
b) Under the ABC analysis
of material control, A stands for high
value items.
c) Muster roll is
necessary for the preparation of the labour
attendance register.
d) Fixed overhead cost is a periodical cost.
Old Course
1.
(a) Choose the correct answer:
1x4=4
a) Prime Cost/Production cost is the combination of direct
material, direct labour and direct expenses.
b) In ABC analysis, A indicates
less value/moderate value/high value
material.
c) Fixed cost per unit
remains same/increases/decreases
when volume of production increases.
d) Standard costing is a
method/technique of Cost Accounting.
(b)
Fill in the blanks: 1x4=4
a) In process costing, output
of every process is the input
of next process.
b) FIFO method, if pricing
issue of material is suitable at the time of decreasing price.
c) Prime cost under
abnormal condition is to be debited to
costing profit and loss account.
d) Under Rowan plan, bonus is
always in decreasing order.
2015
1.
(a) Fill in the blanks: 1x5=5
a) Fixed cost per unit decreases when volume of
production increases.
b) Prime cost is the combination of direct materials, direct
labour and direct expenses.
c) Cost of abnormal idle time
and overtime is transferred to
Costing Profit and Loss Account.
d) Depreciation on showroom
building is to be treated as Selling
and distribution overheads.
e) In contract costing Escalation clause allows
adjustment of the prices of materials or rate of labour, etc., when these rises
beyond a specified limit.
(b)
Choose the correct answer:
1x3=3
a) Rent of a factory building
is a variable cost / fixed cost /
semi-variable cost.
b) A high labour turnover increase / decreases the cost of
production.
c) The basis of apportionment
for canteen and staff welfare expenses is floor area occupied / number of workers / wages.
2014
1. (a) Fill in the blanks: 1x5=5
a) LIFO method is suitable in times of rising prices.
b) Material control aims at achieving effective material utilisation.
c) Cost audit is concerned with the verification and examination of Cost Accounts.
d) When actual loss is more than the estimated loss, then
the difference is considered to be abnormal
loss.
e) Depreciation is an indirect
expense in cost.
(b) Select the appropriate answer for each of
the following questions: 1x3=3
(i) Which
of the following is not a method of costing?
a) Contract Costing
b) Operating Costing
c) Batch Costing
d) Marginal Costing
Ans: d) Marginal
Costing
(ii)
Specify the method of costing suitable to a toy-making unit
a) Process Costing
b) Operating Costing
c) Batch Costing
d) Multiple Operating Costing
Ans: c) Batch Costing
(iii) In
which of the following contracts Contract Costing is applied as a specialized
system of Job Costing?
a) Short-term contract
b) Long-term contract
c) Medium-term contract
d) Continuous processes
Ans: b) Long-term contract
2013
1. (a) Choose the correct answer:
a) Variable cost per unit remains same/increases/decreases due to increase
in production.
b) Under the ABC analysis of
material control, A stands for low value/moderate value/high value items.
c) Idle time represents
the time for which the employers the time for which the employer makes payment
and gains something in terms of production/makes payment but does not gain anything in terms
of production.
(b) fill in the blanks:
a) Fixed overhead cost is a Committed/Period cost.
b) Prime cost incurred due to any abnormality is debited to Abnormal Loss Account.
c) In process costing the output of each process is the Input of the next process.
(c) Write true or false:
a) Most of the items of costs are
direct in contract costing. True
b) High wages of cost not
necessarily mean high cost per unit. True
Post a Comment
Kindly give your valuable feedback to improve this website.