1. Basic objectives of cost
accounting is__________
A. tax compliance. B. financial audit. C. cost ascertainment. D. profit analysis. ( C )
2.Cost accounting was developed
because of the ________.
A. limitations of the management
accounting. B. limitations of the
financial accounting. C. limitations of
the human resource accounting. D.
limitations of the double entry accounting (B)
3.Process costing is suitable for
_________.
A. hospitals.
B. oil reefing firms. C.
transport firms. D. brick laying firms. (
B )
4. Cost classification can be done
in __________.
A. two ways.
B. three ways. C. four ways. D. several ways. (
D )
5.Direct cost incurred can be
identified with ________.
A. each department. B. each unit of output. C. each month. D. each executive. (
B)
6. Overhead cost is the total of
____________.
A. all direct costs. B. all indirect costs. C. indirect and direct costs. D. all specific costs (B)
7.
The cost which is to be incurred even when a business unit is closed is a.
A. imputed cost. B. historical cost. C. sunk cost.
D. shutdown cost. (D)
8.
Classification of cost is useful .
A. to identify costs. B. to find net profit. C. to find gross profit. D. to identify efficiency. (A)
9.
Imputed cost is a__________.
A. normal cost. B. real cost.
C. variable cost. D. notional
cost. (D)
10.
Process costing is suitable for _________.
A. hospitals.
B. oil reefing firms. C.
transport firms. D. brick laying firms. (B)
11.
Multiple costing is a technique of using two or more costing methods for
ascertainment of cost by.
A. the same industry. B. the several firms. C. the same firm. D. the several industries. (C)
12.
Operating costing is suitable for ___________.
A. job order business. B. service industries. C. sugar industries. D. contractors. (B)
13.
Warehouse rent is a part of _________.
A. prime cost.
B. factory cost. C. distribution
cost. D. production cost. (C)
14.Which
one of the following is not considered for preparation of cost sheet?
A. Selling cost. B. Goodwill written off. C. Factory cost. D. Labour cost. (B)
15.
Cost of sales plus profit is __________.
A. value of stocks. B. value of finished product. C. value of goods produced. D. selling price. (D)
16.
Total of all direct costs is termed as _______.
A. works cost.
B. prime cost. C. cost of
sales. D. cost of production. (B)
17.
Prime cost includes. (A)
A. direct materials, direct wages and direct
expenses.
B. indirect materials and indirect labour and
indirect expenses.
C. direct materials, direct wages and indirect
expenses .
D. direct materials, indirect wages and
indirect expenses.
18.
Audit fess is a part of__________. (D)
A. works on cost. B. selling overhead. C. distribution overhead. D. administration overhead
19.
Factory overhead can be charged on the basis of___________-. (A)
A. material cost. B. labour cost. C. prime cost. D. direct expenses
20.
Selling and distribution expenses can be charged on the basis of______________.
(C)
A. material cost. B. labour cost. C. prime cost. D. factory cost
21.
The ratios which reflect managerial efficiency in handling the assets is. (A)
A. turnover ratios B. profitability ratios. C. short term solvency ratio. D. long term solvency ratio.
22.
The ratios which reveal the final result of the managerial policies and
performance is_____. (A)
A. profitability ratios. B. turnover ratios. C. short term solvency ratio. D. long term solvency ratio.
23.
Net profit ratio is a ___________. (D)
A. turnover ratio. B. long term solvency ratio. C. short term solvency ratio D. profitability ratio.
24.
Current ratio is a_____________ (B)
A. long -term solvency ratio. B. short -term solvency ratio. C. profitability ratio. D. turnover ratio.
25.
Fixed assets ratio is a __________ (A)
A.
long -term solvency ratio. B. short
-term solvency ratio. C. profitability
ratio. D. turnover ratio.
26. Proprietary ratio is a
___________. (A)
A.
long -term solvency ratio. B. short
-term solvency ratio. C. profitability
ratio. D. turnover ratio.
27. Stock turnover ratio is
a___________. (D)
A.
long -term solvency ratio. B. short
-term solvency ratio. C. profitability
ratio. D. turnover ratio.
28.
Return on equity is also called______ (D)
A. . return on investment. B. gross profit ratio. C. return on shareholders funds. D. return on net worth
29.
The ratio which determines the profitability from the shareholder’s point of
view is___. (C)
A. return on investment. B. gross profit ratio. C. return on shareholders funds. D. operating profit ratio.
30.
The ratio which is calculated to measure the productivity of total assets
is_________ (C)
A. return on equity. B. return on share holders funds. C. return on total assets. D. return on equity share holders’ funds.
31.
The ratio which indicates earnings per share reflected by the market price
is_______. (C)
A. retained earnings ratio. B. pay out ratio. C. price per share. D. earnings earnings ratio.
32.
The ratio shows the preference dividend as a proportion of profit available for
shareholders is
___________. (B)
A.
interest
cover ratio. B. fixed dividend cover
ratio. C. debt service coverage
ratio. D. dividend yield ratio.
33.
The dividend is related to the market value of shares in____________. (B)
A. fixed dividend cover
ratio. B. dividend yield ratio. C. debt service coverage ratio. D. interest cover ratio.
34.
Turnover ratio is also known as ______________. (B)
A. solvency ratios. B. activity ratios. C. liquidity ratios. D. profitability ratios.
35. Sales – Gross Profit = _______________________. (D)
A. net profit. B. administrative expenses. C. cost of production. D. cost of goods sold.
36. Opening stock + purchases + direct expenses – closing stock =
____________ (D)
A. net profit. B. cost of production C. administrative expenses. D. cost of goods sold.
37. Funds flow statement is based on the_____________. (A)
A. working capital concept
of funds. B. cash concept of funds. C. fixed assets concept of funds. D. long term funds.
38. One of the primary differences between marginal costing and
absorption costing regarding the treatment of __________. (B)
A. prime cost . B. fixed
overheads. C. variable overheads . D. direct materials.
39. Absorption costing differs from marginal costing is
the____________. (B)
A. fact that standard costs
can be used with absorption costing but not with marginal costing .
B. amount of costs assigned
to individual units of products .
C. kind of activities for which each can be used . D. amount of fixed costs that will be
incurred.
40. Period costs are__________. (D)
A. overhead costs . B. prime cost. C. variable cost. D. fixed costs.
41.EOQ stands for---------------------------. (B)
A.Economic original quantity B.Economic order quantity C.evolition order quantity D.none
42. P/V Ratio is an indicator of _______________. (D)
A. the rate at which goods
are sold . B. the volume of sales C. the volume of profit. D. the rate of profit.
43. Margin of Safety is the difference between___________. (B)
A. planned sales and
planned expenses. B. actual sales and
break-even sales. C. planned sales and
actual sales D planned sales and
planned profit
44.Danger Level=? (A)
A.Danger Level=(normal consumption X maximum re-order period under
emergency condition)
B.Danger Level=(minimum consumption X minimum re-order period)
C.Danger Level=(normal consumption X maximum consumption)
D.none of these
45.Materials are classified into-------------------- (A)
A.Both Direct and Indirect materials B.Direct material C.Indirect materials D)None
46.Re-order level or ordering level=? (A)
A.Re-order level=(Maximum consumption X minimum re-order period)
B.Re-order level=(maximum consumption /minimum re-order period)
C.Both a and b
D.None of the above
47.Material levels as follows------------------ (D)
A.Minimum level
B.Maximum level
C.Reorder level D.All the
above
48. Under marginal costing stock are valued at __________. (C)
A. fixed cost. B. semi-variable cost. C. variable cost. D. market price.
49. One of the most important tools of cost planning is _________.
(A)
A. budget. B. direct cost. C. unit cost.
D. cost sheet.
50. Sales budget is a _________. (A)
A. Functional budget. B. Expenditure budget. C. Master budget . D. Flexible budget.
51. The budget which
usually takes the form of budgeted profit and loss account and balance sheet is
known as ___________ (B)
A. Flexible budget . B.
Master budget. C. Cash budget . D. Purchase budget.
52. Preparing budget figures for different levels of activity
within a range under flexible budgeting is
_______. (B)
A.
Formula
method. B. Multi-activity method. C. Budget cost allowance method. D. Proportionate method.
53. The entire process of preparing the budgets is known
as___________. (C)
A. Planning. B. Organizing. C. Budgeting.
D. Controlling.
54. Budgetary control starts with ________________. (C)
A. Planning. B. Organizing. C. Budgeting.
D. Controlling.
55. Budgetary control ends with ____________. (D)
A. Planning. B. Organizing C. Budgeting. D. Control.
56. Long-term budgets are prepared for _______________. (D)
A. 1 year. B. 1-3 years.
C. 1-5 years. D. 5-10 years.
57.Telephone
bill falls in the category of (C)
A.Fixed
cost B.Variable cost C.Semi-variable cost D.None of them
58.Batch
costing is suitable for? (D)
A.Shoe
industry B.Biscuit industry C.Toy manufacturing D.all the above
59.In
which contracts the contractor will get cost plus a stipulated profit? (A)
A.Cost
plus B.Cost minus C.Profit plus D.None of these
60.Contract
costing is a type of ---------------------------- (B)
A.Standard
costing B.Job costing C.Marginal costing D.none of these
61.
ABC analysis is _____________. (B)
A. At Best Control. B. Always Better Control. C. Average better Control. D. All best control.
62.
. JIT inventory system is _____________
(A)
A. . Just In Time. B. Just Inventory
Time. C. Job In Time. D. Job Inventory Time.
63.
Perpetual inventory system involves___________. (A)
A. bincard and stores ledger. B. bill of material and material
requisition. C. purchase requisition and
purchase order. D. inward and outward
invoices.
64.
FIFO is____________. (B)
A. Fast Investment in Future Order. B. First In First Out. C. Fast In Fast Out D. Fast Issue Of Fast Order.
65.
LIFO method of pricing of materials is more suitable when. (A)
A. material prices are rising. B. material prices are falling. C. material prices are constant. D. material prices are fluctuating.
66.
Average method of pricing the material issues is useful when_______. (D)
A. material prices are rising. B. material prices are falling. C. material prices are constant. D. material prices are fluctuating.
67.
Scrap is _________.
(A)
A. residue of material. B. wastage of material. C. surplus material. D. abnormal loss of material.
68.
Material is issued by store keeper against. (A)
A. material requisition. B. material order. C. goods received note. D. purchase requisition.
69.
The budget said as ‘resource planning’ and ‘redeployment process’ is
_______.(A)
A. Zero base budgeting. B. Master budget. C. Flexible budget. D. Fixed budget.
70.
In production budget closing stock is added with ___________. (B)
A. expense.
B. sales. C. purchase. D. material.
71.The
loss incurred on an incomplete contract is transferred to
---------------------A/C. (B)
A.Revenue
a/c B.Profit & loss a/c C.Bank a/c D.None of them
72.Contract
price is payable -----------------------------
(C)
A.In
lumpsum on the completion of contract B.In installments on
work certified
C.Either
in lumpsum or installment as per the contract D.None of the above
73.The
installment payable on the basis of work certified by the
---------------------------(D)
A.Architect B.Surveyor C.Engineer D.any of the above
74.
In contract costing the surplus of materials is
-------------------
(C)
A.Transferred
to P&L a/c B.Transferred to costing P&L
a/c C.Credited to contract a/c
D.None
of them
75.In
job costing cost sheet is prepared------------------------
(A)
A.Separately
for each and every job B.Commonly
for all jobs C.need not be
separate D.None
76.Batch
costing is type of ----------------------------
(A)
A.Job
costing B.Standard costing C.Contract costing D.None of them
77.In
job costing -------------------cost analysis is made.
(C)
A.Element
wise B.Function wise C.both A and B D.None of these
78.The
word “fund” means the difference between --------------and
---------------------(C)
A.Current
assets B.Current liabilities C.Both A and B D.None of these
79.In
-----------------------Statement changes in cash recorded. (A)
A.Cashflow B.Fundsflow C.Both A & B D.None of the above
80.Gross
capital employed is equal to -------------------------
(C)
A.Fixed
assets B.Current assets C.Fixed assets and current assets D.None of these
81.Net
working capital is equal to ----------- (D)
A.Value
of all assets B.value of all
current assets C.Owners +
creditor capital D.Difference between
current assets and current liabilities
82.The
most rigorous test of liquidity is ---------------
(C)
A.Current
ratio B.Acid test ratio C.Absolute measure D.Stock turnover ratio
83.Liquid
ratio is also known as-----------------
A.Acid-test
ratio B.Test ratio C.Both A & B D.None of these
84. Calculate
margin of safety if sales is Rs 3,00,000 and B.E.P is Rs 4,50,000. (A)
a.
Rs 1,00,000 b. Rs 1,50,000 c. Amount of sales < B.E.P, therefore no
margin of safety
d. None of the above
d. None of the above
85. Determine Margin of
safety if Profit is Rs 15,000 and P/V ratio is 40%. (A)
a. Rs 37,500 b. Rs 33,000 c. Rs 38,000 d. None of the above
86. Profit at any level of sales in amount is measured as (C)
a.
Sales * P/V ratio – Variable cost
b. Sales * P/V ratio + Fixed cost
c. Sales * P/V ratio – Fixed cost d. Sales * P/V ratio + Variable cost
c. Sales * P/V ratio – Fixed cost d. Sales * P/V ratio + Variable cost
87. Profit at any level of sales in units is measured as (A)
a.
Sales (units) * Cost per unit - Fixed cost
b. Sales (units) * Cost per unit + Fixed cost
c. Sales (units) * Cost per unit
d. None of the above
b. Sales (units) * Cost per unit + Fixed cost
c. Sales (units) * Cost per unit
d. None of the above
88.……………is
concerned with providing information to management for taking managerial
decisions.
(A)
(a)management
Accounting (b)Financial accounting (c)Cost accounting (d)All of these
|
89.
Cost Accounting and Management Accounting are ……………….. in nature. (A)
(a)complementary (b)contradictory (c)Different (d)Similar
90..
Management accounting has a ……….. scope than cost accounting. (A)
(a) Wider (b)Narrow (c)No (d)None of these
91.
A cost centre is ……………
(D)
(a)a
production department where all production costs are aggregated
(b)an area of business accountable for both
costs and revenues
(c)the
part of the business where all costs are paid to suppliers
(d)an area for which costs are accumulated
92.
Both costs and revenues are measured in ………………… centers (B)
(a)cost (b)profit (c) revenue (d)all of these
93.A
…………….is that factor which causes cost.
(A)
(a)cost driver (b)profit driver (c)all of these (d)none of these
|
94.
When fixed cost is deducted from contribution, the balance will be ………. (B)
(a)variable
cost (b)profit (c)total cost (d)sales
|
95.
Profit Volume ratio is the ratio of ……………. To sales.
(A)
(a)Contribution (b)Profit (c)Sales (d)none of these
96.
Marginal cost is the aggregate of prime cost and ………………. (B)
(a) fixed overheads (b)variable
overheads
(c)contribution
(d)none of these
97.
Under marginal costing, stocks of finished goods and work-in-process are
valued at …………….. costs only
(C)
(a)variable
costs (b)fixed costs (c)marginal cost (d)none of these
|
98.
. ……………is only internal source of funds.
(A)
(a)Fund from operations (b) Net profit (c) both of these (d)none of these
99.
There will be flow of funds, if a transaction involves……………….. (D)
(a)
current assets and fixed assets (b) current assets and capital (c) current
assets and fixed liabilities (d) All of these
100.Marginal
costing is a …………… of costing. (C)
(a)
system (b)method (c)technique (d)all of these
|
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