QUIZ FOR PROFESSIONAL EXAMS
COST ACCOUNTING - SECTION 1 , NEXT TOPIC IS BASED ON INFORMATION TECHNOLOGY
1.Rent for warehouses is a component of what cost?
a) Production cost
b) Controllable Cost
c) Prime cost
d) Distribution cost
Answer: (d) Distribution cost
2.The form of Marginal cost
a) M-shaped
b) S-shaped
c) U-shaped
d) L-shaped
Answer: (c) U-shaped
3.How many ways is cost classification possible?
a) So many ways
b) Two ways
c) Three ways
d) Four ways.
Answer: (a) So many ways
4 It is not possible to measure labour productivity by comparing ______.
a)Standard time with actual time
b)Total output with total wage
c)Total person-hours with the total output
d)Total wage with total effort
Answer: b , Total output with total wage
5.The loss that arises in manufacturing due to the nature of a product is known as ______.
a)Abnormal loss
b)Normal gain
c)Normal loss
d)None of the above
Answer: c , Normal loss
6. --- is termed as the lowest amount of a product that you can have in stock and still be able to meet customer demand.
a)Minimum stock level
b)Reorder level
c)Maximum stock level
d)None of the above
Answer: a , Minimum stock level
7.Which of the following statements is not a reason for price variance of unfavourable direct materials?
a)The actual loss is greater than the estimated loss
b)The actual rate is lower than the standard rate
c)Both a and b are correct
d)Both a and b are incorrect
Answer: c , Both a and b are correct
8.Which of the following is the audit fees a part of under the Standard Costing System?
a)Audit fees is a part of the administration overhead in an organisation
b)Audit fees is a part of the distribution overhead in an organisation
c)Audit fees is a part of the selling overhead in an organisation
d)Audit fees is a part of the works on cost in an organisation
Answer: a , Audit fees is a part of the administration overhead in an organisation
9.Which of the following parties are responsible for material price variances?
a)Production supervisors
b)Purchasing managers
c)Production schedules
d)Accounting managers
Answer: b , Purchasing managers
10.Which of the following is a part of the Standard Costing process within an organisation?
a)Comparison of standard and actual costing process
b)Preparation and usage of the standard costing
c)Analysis of variances
d) All of the above
Answer: d , all of the above
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1 comment:
Great informative network . It is very useful to us as we are some students wanted to participate competitive exams based on finance. Thanks
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