Cost Accounting Important Multiple choice questions (MCQs) B.COM (Hons): Gauhati University Cost Accounting Important MCQS, Dibrugarh University Cost Accounting Important MCQS, Ravindranath Tagore University Cost Accounting Important MCQS, Cost Accounting Important Multiple Choice Questions Answers.
In this article, you will get very very important Cost Accounting Unit -1 INTRODUCTION TO COST ACCOUNTING MCQs for B.com (Hons). This can be Very Useful for scoring good marks in your Semester & Sessional Exams conducted by your college/University.
COST ACCOUNTING MCQS
Unit 1
INTRODUCTION TO COST ACCOUNTING
Q.1 (A): Fill in the blanks with the most appropriate words:
(i)______ is the main function of cost accounting.
Ans Cost ascertainment.
(ii) ______is the aggregate of indirect material cost, indirect wages and indirect expenses.
Ans: Overhead
(iii) The aggregate of direct materials, direct wages and direct expenses is known as______.
Ans: Prime cost.
(iv) ______is a unit of product, service or time about which cost may be ascertained.
Ans: Cost Unit
(v) Prime cost + Factory overhead =
Ans: Works cost.
(vi) Cost accounting records both monetary and total cost is depicted______unit.
Ans: Physical.
(vii) _____is a statement whose detailed information about .
Ans: Cost sheet.
Q1(B): State whether the following statements are True or False:
(i) Differential cost is the change in the cost due to a change in activity from one level to another.
Ans: True
(ii) Depreciation is an example of a semi-variable cost.
Ans: False
(iii) Costing systems are classified according to the nature of operations.
Ans: False
(iv) Sunk costs are not relevant to decision-making. Ans: True.
(v) A cost unit is regarded as a unit of product, service or time about which cost may be ascertained or expressed.
Ans: True.
(vi) Cost accounting is needed by non-profit organisations like schools, colleges and hospitals.
Ans: True
(vii) Cost accounting is generally concerned with internal reporting in managerial requirements.
Ans: True.
(viii) Cost is expressed in Rs. per physical unit (like meter, kg, km, tonne etc.)
Ans: True
(ix) Cost accounting is not required if the price is beyond the control of the firm.
Ans: False
(x) All limited companies registered under the Companies Act, 1956 must maintain cost account records.
Ans: False.
(xi) Opportunity cost is the value of benefit sacrificed in favour of an alternative course of action.
Ans: True
(xii) Cost of production is equal to prime cost plus works cost.
Ans: False
(xiii) Direct cost can be conveniently identified with and charged to a particular unit of cost.
Ans: True
(xiv) Fixed cost per unit decreases with rising in output and increases with a fall in output.
Ans: True
Q1(C): Choose the correct alternative :
(i) Which of the following statement is correct :
(a) Cost accounting helps in ascertaining accounting profit for income tax purposes.
(b) Cost accounting provides information to all those who are internal and external to the firm.
(c) Costing and cost accounting are not the same term.
(d) Cost accounting helps the management in earning extra profit.
Ans: (c) Costing and cost accounting are not the same term.
(ii) Cost centres are created for
(a) Inventory valuation.
(b) Product pricing.
(c) Control and fixation of responsibility.
(d) Revenue generation.
Ans : (c) Control and fixation of responsibility.
(iii) According to CIMA, London, "the technique and process of ascertaining cost" is called
(a) Costing
(b) Cost Accounting
(c) Cost Accountancy
(d) Cost
Ans: (a) Costing
(iv) Which among the following cost are not useful for managerial decision-making?
(a) Sunk cost
(b) Marginal cost
(c) Standard cost
(d) None of the above
Ans: (a) Sunk cost
(v)The main objective of cost accounting is
(a) Reducing the cost
(b) Fixation of the selling price
(c) Cost control
(d) Maximise profit.
Ans: Cost Control
(vi) In costing stock is valued at
(a) Market price
(b) Cost price
(c) Selling price
(d) Standard price
Ans: (b) Cost price
(vii) system will create confidence in the minds of the public about the fairness of the prices charged.
(a) Costing
(b) Financial Accounting
(c) Management Accounting
(d) Cost accounting
Ans: (a) Costing
(vi)_____is the application of costing and cost accounting principles, methods and techniques to the art, science and practice of cost control and the ascertainment of profitability.
(a) Cost Accounting
(b) Cost Accountancy
(c) Cost Control
(d) Cost Ascertainment
Ans : (b) Cost Accountancy
(ix) Data required for fixation of the selling price is provided by__
(a) Management Accounting
(b) Financial Accounting
(c) Cost Accounting
(d) All of these
Ans: (c) Cost Accounting
(x)Batch costing is suitable for
(a) Sugar Industry
(b) Chemical Industry
(c) Pharma Industry
(d) Oil Industry
Ans : (c) Pharma Industry
(xi)Joint costing is suitable for
(a) Infrastructure Industry
(b) Ornament Industry
(c) Oil Industry
(d) Fertilizer Industry
Ans: (c) Oil Industry
(xii)In the cement industry, the method of costing adopted is
(a) Process costing
(b) Job costing
(c) Contract costing
(d) Operation costing
Ans: (a) Process costing
(xiii) Primary packing materials are an example of
(a) Direct materials
(b) Indirect materials
(c) Selling overheads
(d) Factory overheads
Ans: (a) Direct materials
(xiv) _____is a location, person or item of equipment (or group of these) for which cost may be ascertained and used for
the purpose of control.
(a) Cost centre
(b) Revenue centre
(c) Profit centre
(d) Responsibility centre
Ans: (a) Cost centre
(xv)_____is the segment of activity of a business which is responsible for both revenue and expenses.
(a) Cost centre
(b) Revenue centre
(c) Profit centre
(d) Responsibility centre
Ans: (c) Profit centre
(xvi) Conversion cost excludes
(a) Direct material
(b) Direct labour
(c) Direct expenses
(d) All of the above
Ans: (a) Direct material.
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