13) Quiz Questions

Question Details of Subject :QUIZ-CMC-211
Page 1 of 46
Unit Code Group 1 Group 2 Group 3 Unit Wise Total Total Questions : 286
1 48 50 2 100
2 45 45 0 90
3 45 51 0 96
Group Wise Total 138 146 2
QNo Question Id Question Description

1 649171 --------provides information for income determination-
1.Financial accounting (Right)
2.cost accounitng
3.
4.
2 649172 Cost accounting disclose ------
1.Financial position
2.profit/loss of a product, job or service (Right)
3.
4.
3 649173 --------aids in price fixation
1.cost accounting (Right)
2.management accounitng
3.
4.
4 649174 -------includes financial and cost accounting, tax planning and tax accounting
1.financial accounting
2.management accounting (Right)
3.cost accounting
4.
5 649175 ---------is not the scope of Cost Accountancy-
1.cost control
2.cost ascertainment
3.tax planning (Right)
4.
University Information System - By - ERP Division Wednesday, November 21, 2018 1:24:59 PM
Page 2 of 46
6 649176 Cost Accountancy is the science, art and -------of a cost accountant-
1.practice
2.excercise (Right)
3.hard work
4.
7 649177 Cost accounting provides data for managerial------
1.decision making (Right)
2.recruitment
3.retrenchment
4.
8 649178 Cost accounting is based on-------figures
1.actual
2.historical
3.estimated (Right)
4.
9 649179 Cost accounting provides detailed information about -------of various products, processes, services and operations-
1.cost (Right)
2.income
3.a or b
4.
10 649180 The total variable cost -------- in total proportion to output
1.increase (Right)
2.does not increase
3.decrease
4.
11 649181 --------provides information for income determination
1.financial accounting (Right)
2.cost accounting
3.
4.
12 649182 The scope of cost accounting include----,----- and-----
1.Cost ascertainment, cost presentation, cost control (Right)

2. tax planning, tax accounting, financial accounting
3.presentation of accounting information, creation of policy, day-to day operation
4.
Page 3 of 46
13 649183 -----is a post mortem of past costs-
1.Financial accounting
(Right)
2.cost accounting
3. both a & b
4.
14 649184 ------is the oldest branch of accounting-
1.cost accounting
2.financial accounting (Right)
3.a and b
4.
15 649185 Cost Accounting has been developed because of------ of Financial Accounting-
1.advantages
2.lmitations (Right)
3.a and b
4.
16 649186 Cost accounts deal partly with facts and figures and partly with---
1.revenue
2.cost (Right)
3.estimate
4.
17 649187
Cost accounting records both monetary and ----- units-
1.cost
2.physical (Right)
3.a and b
4.
18 649188 Variable cost per unit -----------
1.varies
2.remains constant (Right)
3.decrease
4.
Page 4 of 46
19 649189 Costing and cost accounting are -------
1.not the same (Right)

2.one and the same
3.not related at all
4.
20 649190 Sunk costs are ------- for decision-making
1.relevant
2.irrelevant (Right)
3.useful
4.
21 649191
The process of accounting divided into three steams i.e. financial Accounting, cost Accounting & management
accounting.
1.true (Right)
2.false
3.
4.
22 649192
Cost accounting is concerned with recording, classifying and summarizing costs for determination of costs of products or
service
1.true (Right)
2.false
3.
4.
23 649193
Cost Accounting is a branch of Financial Accounting?
True or False?
1.true
2.false (Right)
3.
4.
Page 5 of 46
24 649194
The scope/ Objective of Cost Accounting includes Cost ascertainment, Cost presentation & Cost Control
1.true (Right)
2.false
3.
4.
25 649195 Cost means the amount of expenditure (actual or notional) incurred on, or attributable to, a given thing
1.true (Right)
2.false
3.
4.
26 649196 Cost means the amount of expenditure (actual or notional) incurred on, or attributable to, a given thing.
1.true (Right)
2.false
3.
4.
27 649197
Cost control means the control of costs by the Owner
1.true
2.false (Right)
3.
4.
28 649198 «««««Costs change in proportion to the level of production activity, while fixed costs remain unchanged.
1.various
2.variable (Right)
3.
4.
29 649199
Direct material Direct labour+ Direct Expenses= «««««««
1.prime cost (Right)

2.total cost
3.
4.
30 649200 Cost of Production + Selling Expenses= ««««««««
1.work cost
2.total cost (Right)
3.
4.
Page 6 of 46
31 649201
Prime Cost + Factory Overheads+ Opening Stock of work in progress- Closing stock of work in progress=«««««««
1.factory cost (Right)

2.prime cost
3.
4.
32 649202 Work Cost + Administrative Overheads= ««««««««««
1.factory cost
2.cost of production (Right)
3.
4.
33 649203 Wood used in producing doors it should be«««««««Cost
1.fixed cost
2.variable cost (Right)
3.
4.
34 649204
The main purpose of Cost accounting is to:
1.maximise profit
2.minimize loss
3.help management in decision making (Right)
4.
35 649205
Cost Accounting mainly helps the management in
1.Earning extra profit

2. Providing information to the management
(Right)
3. Fixing prices of the products
4.all of the above
36 649206 Cost accounting provides all of the following information except
1.(a) Product costs

2.inventory values
3.Cost of goods sold
4.Cash Forecast
(Right)
Page 7 of 46
37 649207 Which of the following would not be included on a balance sheet?
1.account receivable
2.account payble
3.sales (Right)
4.
38 649208
Which of the following would not be included on Costing?
1.material
2.labour
3.premises (Right)
4.expense
39 649209
Which of the following would not be directly related with the indirect material?
1.Lubricants
2.
Printing and stationery
3.Timber/ Wood in furniture

(Right)
4.
40 649210
The labor which is related to the manufacturing of the product is classified a
1.direct manufacturing labor costs

(Right)
2.indirect manufacturing labor costs
3.work in process cost

4.
41 649211
The direct material costs are added into direct manufacturing costs to calculate
1.discuss costs
2.prime costs
(Right)
3.resale cost
4.merchandise costs
Page 8 of 46
42 649212
The direct manufacturing labor costs is added to manufacturing overhead cost to calculate
1.
1.transaction costs
2.conversion costs
(Right)
3.merchandise costs
4.resale costs
43 649213
In cost terms, the direct manufacturing labor cost is included in
1.
1.manufacturing costs
2.prime costs
3.conversion costs
4.Both B and C (Right)

44 649214
The inventory of the final goods that are not yet sold is called
1.A. finished goods inventory

(Right)
2.B. indirect material inventory
3.
4.
45 649215
The costs which are considered as expenses in the accounting period are classified as
1.inventory costs
2.period costs (Right)

3.
4.
46 649216 Total cost of a product: Rs. 10,000 Profit: 25% on Selling Price Profit is
1.2500
2.3000
3.3333 (Right)
4.2000
Page 9 of 46
47 649217 Labour turnover means:
1.turnover generated by labour

2.change in labour composition (Right)
3.
4.
48 649218 Allotment of whole item of cost to a cost centre or cost unit is known as:
1.allocation (Right)
2.absorption
3.
4.
49 649219 In µmake or buy¶decision, it is profitable to buy from outside only when the supplier¶s price is below the firm¶s own ______________.
1.fixed cost
2.total cost (Right)
3.variable cost
4.
50 649220 Overhead refers to:
1.prime cost
2.only factory indirect cost
3.all indirect expenses (Right)
4.
51 649221 Cost accounting helps in controlling cost
1.true (Right)
2.false
3.
4.
52 649222 Cost reduction is primary responsibility of cost accountant
1.true
2.false (Right)
3.
4.
53 649223 Costing and cost accounting are same
1.true
2.false (Right)
3.
4.
54 649224 Cost allocation and cost apportionment are same
1.true
2.false (Right)
3.
4.
Page 10 of 46
55 649225
Which of the following items of expense are to be add in FOH cost
Select correct option:
1.Rent of factory + factory lighting bill + Directors salaries
2.Rent of factory + factory lighting bill + Factory employees salaries (Right)

3.
4.
56 649226 In which of the following center FOH cost NOT incurred
1.Production Center
2.Service Center
3.General Cost Center
4.Head Office (Right)

57 649227 The cost of electricity bill of the factory is treated as
1.variable
2.fixed
3.semi variable (Right)
4.
58 649228 Factory Over head cost includes
1.Factory Rent
2.Property Tax
3.Salaries of Factory Clerk
4.All of the given (Right)

59 649229 Cost accounting concepts include all of the following EXCEPT:
1.Planning
2.Controlling
3.Sharing (Right)
4.
60 649230 Direct material opening inventory add net purchases is called
1.Material consumed
2.Material available for use (Right)

3.
4.
Page 11 of 46
61 649231 Which of the following is to be called product cost
1.material cost
2.labour cost
3.FOH cost
4.all (Right)
62 649232
What will be the impact of normal loss on the overall per unit cost. Select correct option:
1.Per unit cost will increase

(Right)
2.Per unit cost will decrease
3.
4.
63 649233 Which of these is not a Material control technique:
1.abc analysis
2.maintaining stores ledger (Right)
3.
4.
64 649234 Out of the following, what is not the work of purchase department
1.accounting of material received (Right)

2.purchase requisition
3.
4.
65 649235 Bin Card is a
1.Quantitative as well as value wise records of material received, issued and balance
2.Quantitative record of material received, issued and balance (Right)
3.
4.
66 649236 Stores Ledger is a
1.Quantitative as well as value wise records of material received, issued and balance; (Right)
2.a record of labor attendance
3.
4.
67 649237
Re-order level is calculated as:
1.Maximum consumption x Maximum re-order period (Right)

2. Minimum consumption x Minimum re-order period
3.
4.
Page 12 of 46
68 649238 Economic order quantity is that quantity at which cost of holding and carrying inventory is:
1.maximum and equal

2.minimum and equal (Right)
3.
4.
69 649239 ABC analysis is an inventory control technique in which
1.Inventory is classified into A, B and C Category with A being the lowest quantity, highest value (Right)
2.inventory levels are maintained
3.
4.
70 649240 Which one out of the following is not an inventory valuation method
1.LIFO
2.FIFO
3.EOQ (Right)
4.
71 649241 In case of rising prices (inflation), FIFO method will:
1.provide lowest value of closing stock and profit

2.provide highest value of closing stock and profit (Right)
3.
4.
72 649242
. In case of rising prices (inflation), LIFO will:
1.provide lowest value of closing stock and profit

(Right)
2.
(b) provide highest value of closing stock and profit
3.
4.
73 649243 . If overtime is resorted to at the desire of the customer, then the overtime premium
1.should be charged to the job directly (Right)

2.SHOULD NOT BE CHARGED AT ALL
3.
4.
74 649244 Labour turnover means
1.Rate of change in composition of labour force during a specified period (Right)

2.TURNOVER GENERATED BY LABOUR
3.
4.
Page 13 of 46
75 649245 Which of the following is not an avoidable cause of labour turnover:
1.Disability, making a worker unfit for work (Right)

2.job dis satisfaction
3.
4.
76 649246 Costs associated with the labour turnover can be categorised into
1.preventive cost
2.replacement cost
3.both (Right)
4.
77 649247 Overhead refers to:
1.all direct cost

2.all indirect cost (Right)
3.
4.
78 649248 Allotment of whole item of cost to a cost centre or cost unit is known as
1.cost allocation (Right)

2.cost apportionment
3.
4.
79 649249 Which of the following is not a method of cost absorption?
1.machine hour
2.labour hour
3.repeated distribution method (Right)
4.
80 649250 Product costs consist of direct labor, direct materials, and manufacturing overhead and indirect costs.
1.true
2.false (Right)
3.
4.
81 649254 Multiple cost pools are used when allocating overhead using the plant wide overhead rate method.
1.true
2.false (Right)
3.
4.
Page 14 of 46
82 649256
Activity-based costing is an attempt to overcome the distortions of overhead allocation
that uses volume-based bases, such as machine hours or direct-labour hours.
1.true (Right)
2.false
3.
4.
83 649257
Assigning costs to departments and products on the basis of a variety of activities instead
of only one is known as activity-based costing.
1.true (Right)
2.false
3.
4.
84 649262
The first goal of departmental accounting is to assign costs and expenses to managers
who are responsible for managing each department.
1.true
2.false (Right)
3.
4.
85 649263
The two basic categories of departments are service and production
1.true (Right)
2.false
3.
4.
86 649264
The manufacturing departments of a factory and the accounting and advertising service
departments are profit centres.
1.true
2.false (Right)
3.
4.
Page 15 of 46
87 649265
The supplies used in only one department are a direct expense of that department.
1.true (Right)
2.false
3.
4.
88 649266
Direct expenses and common costs are allocated to service departments on some
reasonable basis, such as time, space occupied, or levels of activity
1.true
2.false (Right)
3.
4.
89 649267
The bases for allocating indirect costs among departments are influenced by standards
set within the industry in which the company operates
1.true
2.a (Right)
3.false (Right)
4.b
5.c
6.d
90 649268
Preparing a departmental income statement requires three basic steps: (1) accumulating
direct expenses for each department, (2) allocating indirect expenses across all
departments, and (3) allocating service department expenses to selling departments
1.true (Right)
2.false
3.
4.
91 649269 Service departments costs should be allocated to:
1.only service department

2.to both production and service department (Right)
3.
4.
92 649270 Most suitable basis for apportioning insurance of machine would be
1.floor area
2.value of machine (Right)
3.
4.
Page 16 of 46
93 649271 Blanket overhead rate is
1.one rate for whole factory (Right)

2.nil rate
3.
4.
94 649272 Which of the following is not a reason for an idle time variance?
1.Wage rate increase
(Right)
2.(b) Machine breakdown
3.
4.
95 649273 A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be
included in the cash budget?
1.Capital cost of a new collection vehicle
2.(b) Depreciation of the machinery

(Right)
3.
4.
96 649274
A typical job cost will contain actual costs for material, labour and production overheads, and non ±production overheads are often added as a
percentage of total production cost
1.true
2.false (Right)
3.
4.
97 649275 A light engineering company should not be advised to use service costing
1.true (Right)
2.false
3.
4.
98 649276
In µmake or buy¶decision, it is profitable to buy from outside only when the supplier¶s price is below
the firm¶s own
1.fixed cost
2.variable cost (Right)
3.
4.
Page 17 of 46
99 649277 . A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as:
1.functional budget
2.flexible budget (Right)
3.
4.
100 649278
................
is a detailed budget of cash receipts and cash expenditure incorporating both
revenue and capital items.
1.cash budget (Right)

2.capital expenditure budget
3.
4.
101 649279 In element-wise classification of overheads, which one of the following is not included ²
1.fixed overhead (Right)

2.indirect labour
3.
4.
102 649280 Material control does not cover the following stage-
1.purchase
2.production (Right)
3.
4.
103 649281
Departmental income statements that are prepared without regard as to whether
expenses are direct or indirect are often not the best tools for evaluating department
performance.
1.true (Right)
2.false
3.
4.
Page 18 of 46
104 649282
It is possible for a sales department to show a net loss on a departmental income
statement but have a positive contribution to overhead.
1.true (Right)
2.false
3.
4.
105 649283
Departmental contribution to overhead is determined for each profit centre by subtracting
from the profit centre's net sales the direct expenses of that profit centre.
1.true (Right)
2.false
3.
4.
106 649284
It is not possible for a firm to have a higher contribution percentage than one of its selling
departments.
1.true
2.false (Right)
3.
4.
107 649285
When a department manager cannot control or influence a cost assigned to the
department, within a given accounting period, that cost is known as an inescapable
expense with reference to the manager and the department
1.true
2.false (Right)
3.
4.
108 649286
A responsibility accounting budget is a report that shows comparisons of actual costs of
the previous accounting period with the budgeted costs of the subsequent accounting
period
1.true
2.false (Right)
3.
4.
Page 19 of 46
109 649287
A key to successful responsibility budgets and the subsequent responsibility accounting
reports is the noninvolvement of lower-level managers in establishing the budget.
1.true
2.false (Right)
3.
4.
110 649289
In the food processing industry, the cost of chickens for the purpose of processing
chicken legs, breasts, and thighs is a joint cost
1.true (Right)
2.false
3.
4.
111 649290
The physical allocation approach to assigning joint costs to products will result in each
product showing a profit from its sales.
1.true
2.false (Right)
3.
4.
112 649291
One outcome of the value-based method of allocating costs to finished products is that
each product will have the same percentage of gross profit.
1.true (Right)
2.false
3.
4.
113 649292
An investment centre incurs investments and generates profits.
1.true (Right)
2.false
3.
4.
Page 20 of 46
114 649293
If a manufacturing company is using activity-based costing for internal purposes only, then organization-sustaining overhead costs should not be
allocated to any of the products.
1.true (Right)
2.false
3.
4.
115 649294
Organization-sustaining activities are carried out regardless of how many units are made, how many batches are run, or how many different products
are made.
1.true (Right)
2.false
3.
4.
116 649299
A duration driver provides a measure of the amount of time required to perform an activity.
1.true (Right)
2.false
3.
4.
117 649300 Material control aims at achieving effective----
1.material management (Right)
2.quality control
3.
4.
118 649301 Stores Ledger is maintained in the-------
1.store (Right)
2.finance department
3.
4.
119 649302 Stock verification sheets are maintained to record the results of ----
1.physical verification (Right)
2.toString()
3.financial verification
4.toChar()
5.None of above
6.valueOf() (Right)
Page 21 of 46
120 649303 Stock Adjustment Account is debited with ----and credited with -----
1.shortage of stock, surplus (Right)
2.surplus, shortage of stock
3.
4.
121 649304 Bin card is a record of -----only-
1.quantity (Right)
2.value
3.
4.
122 649305 Bin card is maintained by the------
1.store keeper (Right)
2.branch accountant
3.
4.
123 649306 Material abstract is also known as ------
1.material issue analysis sheet (Right)
2.bills of material
3.
4.
124 649307 Material should be issued by the store keeper against-------
1.material requisition
2.bills of material
3.both (Right)
4.
125 649308 First in first out method of valuing material issues is suitable in times of----
1.raising prices
2.falling prices (Right)
3.
4.
126 649309 Last in first out method is suitable in times of------
1.raising prices (Right)
2.falling prices
3.
4.
127 649310 Average cost method of valuing material issues is suitable when-----
1.price rise (Right)
2.price fall
3.
4.
Page 22 of 46
128 649311 Inflated price method of valuing material issues is suitable when----
1.price rise
2.price fall (Right)
3.
4.
129 649312 Specific price method of valuing material issue is used when-----
1.material are purchased to specific job (Right)

2.materials are subject to natural wastage
3.
4.
130 649313 Market price method is considered to be the best method when------
1.quotation sent (Right)
2.price fluctuate
3.
4.
131 649314 A bill of material serves the purpose of-------
1.Material requisition (Right)

2.stores ledger
3.
4.
132 649315 Depreciation is-------expenditure
1.variable
2.semi variable (Right)
3.
4.
133 649316
Bill of materials
1.is an invoice sent by the supplier. (Right)

2.helps to calculate the cost of materials of a job.
3.
4.
Page 23 of 46
134 649317
Material control includes
1. inventory control. (Right)

2.control over labour
3.
4.
135 649318 operating budget relate to physical / operating activities
1.yes (Right)
2.no
3.
4.
136 649319 financial budget are related with cash receipt and reimbursement
1.yes (Right)
2.no
3.
4.
137 649320 aim of cash budget as tool is to maintain minimum cash balance
1.yes (Right)
2.no
3.
4.
138 649321 master budget is summary of all budgets
1.true (Right)
2.false
3.
4.
139 649322 fixed cost may be .....
1.committed
2.decremental
3.both (Right)
4.
140 649323 The approach in which the company under-cost its one product and over-cost its at least one product is classified as
1.product-cost cross subsidizing (Right)

2.service-cost cross subsidizing
3.
4.
141 649324 The budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base to calculate
1.budgeted direct cost rate

2.budgeted in direct cost rate (Right)
3.
4.
Page 24 of 46
142 649325 In activity based cost system, the activity, unit of work or task with differentiated purpose is classified as
1.activity (Right)
2.purpose cost
3.
4.
143 649326 The costs of all the activities for individual products or services are classified as
1.in put unit level costs

2.output-unit level costs (Right)
3.
4.
144 649327 In the activity based costing implementation, the product's diverse demand is based on
1.batch size
2.process steps
3.both (Right)
4.
145 649328 The broad averages used to assign the cost of revenue to cost objects is classified as
1.refined cost system (Right)

2.refined selling system
3.
4.
146 649329 The costs of all the activities for a group of products rather than individual product are classified as
1.activity level cost

2.batch level cost (Right)
3.
4.
147 649330 the product which requires low amount of resources but incur high per unit cost is classified as
1.product over costing (Right)

2.product under costing
3.
4.
148 649331 In the activity based costing method implementation, the indirect costs are allocated by using the
1.no cost pool

2.one or two cost pool (Right)
3.
4.
149 649332 The costing system in which individual activities are identified as the cost object is considered as
1.activity based costing (Right)

2.manufacturing cost
3.
4.
Page 25 of 46
150 649333
The type of costs that can not be traced for individual products but help in supporting the organization are classified as
1.individual sustaining costs

2.facility sustaining costs (Right)
3.
4.
151 649334 In the activity based costing method implementation, the output unit level costs are classified as
1.direct cost
2.indirect cost (Right)
3.
4.
152 649335
The hierarchy which is based on different types of cost allocation and drivers to categorize cost pool activity is classified as
1.
2.
1.cost hierarchy (Right)

2.price hierarchy
3.
4.
153 649336
In general, transaction drivers are more accurate measures of the consumption of resources than duration drivers.
1.true
2.false (Right)
3.
4.
154 649337 The costs of idle capacity should not be assigned to products in activity-based costing
1.true (Right)
2.false
3.
4.
155 649338
In traditional costing systems, all manufacturing costs are assigned to products--even manufacturing costs that are not caused by the products.
1.true (Right)
2.false
3.
4.
Page 26 of 46
156 649339
Activity-based costing involves a two-stage allocation in which overhead costs are first assigned to departments and then to jobs on the basis of direct
labor hours.
1.true
2.false (Right)
3.
4.
157 649340
In activity-based costing, some costs may be broken down and assigned to two activity cost pools. For example, part of a supervisor's salary may be
classified as a product-level activity and part of it may be classified as a batch-level activity.
1.true (Right)
2.false
3.
4.
158 649341 Activity rates in activity-based costing are computed by dividing costs from the first-stage allocations by the
activity measure for each activity cost pool.
1.true (Right)
2.false
3.
4.
159 649342
In the second-stage allocation in activity-based costing, activity rates are used to apply costs to products, customers, and other cost objects.
1.true (Right)
2.false
3.
4.
160 649343
When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based
costing system in which there are batch-level and product-level costs, the unit product costs of high volume products typically decrease whereas the
unit product costs of low volume products typically increase.
1.true (Right)
2.false
3.
4.
161 649344 Product costing information is used by managers
1.for planning and control
2.for cost management
3.both answers are correct (Right)
4.
Page 27 of 46
162 649345 __________ is the process of distributing indirect costs to products
1.A
2.Cost allocation (Right)
3.B
4.Job order costing
5.C (Right)
6.D
163 649346 A __________ links an indirect cost to a cost object
1.cost-allocation base or cost driver (Right)
2.cost pool
3.
4.
164 649347 A job that shows low profitability may be the result of:
1.underpricing the job
2.overpricing the job (Right)
3.
4.
165 649348 If pre-determined overhead rates were calculated monthly rather than annually, then for the month of
February with only 28 days
1.pre-determined overhead rates would be lower
2.pre-determined overhead rates would be higher (Right)
3.
4.
166 649349 In a job-costing system, a manufacturing firm typically uses a pre-determined overhead rate to
estimate the __________ allocated to a job
1.direct labor
2.manufacturing overhead costs (Right)
3.
4.
167 649350 A job-cost sheet details the:
1.direct materials purchased and paid for
2.direct labor costs incurred
(Right)
3.
4.
168 649351 All of the following are true of the Work-in-Process Control account EXCEPT that:
1.it tracks all direct material purchases (Right)
2.the balance equals the sum of amounts from all in-process individual job-cost records
3.
4.
Page 28 of 46
169 649352 All of the following increase the Work-in-Process Control account EXCEPT
1.direct materials
2.actual plant insurance costs (Right)
3.
4.
170 649353 All of the following are true of plant utility costs EXCEPT
1.the cost increases the Work-in-Process Control account (Right)
2.it is an indirect cost
3.
4.
171 649354 The ending balance in the Finished Goods Control account represents the costs of all jobs that
1.have not been completed
2.have been completed but not sold (Right)
3.
4.
172 649355 When the allocated amount of overhead costs are more than the actual amount, overhead costs
have been
1.underallocated
2.overapplied (Right)
3.
4.
173 649357 The product which requires large amount of resources but incur low per unit cost is classified as
1.product under costing (Right)

2.product over costing
3.
4.
174 649358
The costs of undertaken activities to support individual products are classified as
1.product sustaining costs (Right)

2.output sustaining
3.
4.
Page 29 of 46
175 649359
The cost pool category which have the similar cause and effect relationship with each cost driver used as allocation base is classified as
heterogeneous price pool

homogenous cost pool
heterogeneous price pool
homogenous cost pool
1.homogenous cost pool (Right)

2.heterogeneous price pool
3.
4.
176 649360 The kaizen budgeting's significant feature is
1.employee suggestion (Right)

2.customer satisfaction
3.
4.
177 649361 PDCA stands for
1.plan do check act (Right)

2.purpose , divide, carry out , assess
3.
4.
178 649362 The estimated price which is expected to be paid by customers for particular market offering is classified as
1.target price (Right)

2.target cost
3.
4.
179 649363
The estimated cost per unit in long run which enables company achieve its per unit target operating income is classified as
1.target operating income per unit

2.target cost per unit (Right)
3.
4.
Page 30 of 46
180 649364
The target price is subtracted from per unit target operating income to calculate
1.target cost per unit (Right)

2.target operating income per unit
3.
4.
181 649365
The income which a company aims to earn by selling each unit of market offering is classified as
1.target operating income per unit (Right)

2.target cost per unit
3.
4.
182 649366
The process which leads to disassembling and analysis of competitors operating activities to become acquainted with competitors technologies is
classified as
1.outsource engineering
2.reverse engineering (Right)
3.
4.
183 649367
Specifications for materials are compiled on a bill of materials.
1.true (Right)
2.false
3.
4.
184 649368 An operations flow document shows all processes necessary to manufacture one unit of a product
1.true (Right)
2.false
3.
4.
185 649369 A standard cost card is prepared before developing manufacturing standards for direct materials, direct labor,
and factory overhead
1.true
2.false (Right)
3.
4.
Page 31 of 46
186 649370 The total variance can provide useful information about the source of cost differences
1.true
2.false (Right)
3.
4.
187 649371
The formula for price/rate variance is (AP - SP) x SQ
1.true
2.false (Right)
3.
4.
188 649372
The price variance reflects the difference between the quantity of inputs used and the standard quantity
allowed for the output of a period.
1.true
2.false (Right)
3.
4.
189 649373
The usage variance reflects the difference between the price paid for inputs and the standard price for those
inputs.
1.true
2.false (Right)
3.
4.
190 649374 The formula for usage variance is (AQ - SQ) * SP
1.true (Right)
2.false
3.
4.
191 649375 The point of purchase model calculates the materials price variance using the quantity of materials
purchased.
1.true (Right)
2.false
3.
4.
Page 32 of 46
192 649376
The difference between the actual wages paid to employees and the standard wages for all hours worked is
the labor rate variance.
1.true (Right)
2.false
3.
4.
193 649377
The difference between the standard hours worked for a specific level of production and the actual hours
worked is the labor rate variance.
1.true
2.false (Right)
3.
4.
194 649378 A flexible budget is an effective tool for budgeting factory overhead
1.true (Right)
2.false
3.
4.
195 649379 The difference between total actual cost incurred and total standard cost applied is referred to as
1.total variance (Right)
2.price variance
3.
4.
196 649380 The difference between what was paid for inputs and what should have been paid for inputs is referred to as
a
1.total variance
2.price variance (Right)
3.
4.
197 649381 The difference between standard quantity allowed and quantity used for a unit of output is known as an
1.efficiency variance (Right)
2.overhead variance
3.
4.
Page 33 of 46
198 649382 The difference between actual variable overhead and budgeted variable overhead based upon actual hours is
referred to as the _____________________________________.
1.variable overhead spending variance (Right)
2.fixed overhead spending variance
3.
4.
199 649383
When multiple materials are used, the effect of substituting a non-standard mix of materials during the
production process is referred to as a _____________________ variance.
1.material mix (Right)

2.product mix
3.
4.
200 649384
When multiple labor categories are used, the financial effect of using a different mix of workers in a production
process is referred to as a _______________________ variance.
1.material mix
2.product mix (Right)
3.
4.
201 649385
A primary purpose of using a standard cost system is
1.to make things easier for managers in the production facility.
2.to provide a distinct measure of cost control. (Right)

3.
4.
202 649386
The standard cost card contains quantities and costs for
1.direct material and direct labor only.
2.direct material, direct labor, and overhead. (Right)

3.
4.
Page 34 of 46
203 649387 Favorable variances are not necessarily good variances
1.true (Right)
2.false
3.
4.
204 649388 In a standard cost system, Work in Process Inventory is ordinarily debited with
1.standard costs based on production output.
(Right)
2.actual costs of material, labor, and overhead.
3.
4.
205 649389 A standard cost system may be used in
1.either job order costing or process costing.
(Right)
2.neither job order costing nor process costing.
3.
4.
206 649390 Standard costs may be used for
1.product costing
2.planning & control
3.both (Right)
4.
207 649391
A purpose of standard costing is to
1.replace budgets and budgeting.

2.simplifying costing procedure (Right)
3.
4.
208 649392 standard cost if properly used, help motivate employees
1.yes (Right)
2.no
3.
4.
209 649393 A bill of material does not include
1.quantity of component inputs.
2.price of component inputs. (Right)
3.
4.
Page 35 of 46
210 649394 An operations flow document
specifies tasks to make a unit and the times allowed for each task.
1.true (Right)
2.false
3.
4.
211 649396 The resources that have been used for attaining a particular objective is
1.revenue
2.cost (Right)
3.
4.
212 649397 Cost accounting is a reporting system
1.internal (Right)
2.external
3.
4.
213 649398 The costing which determines cost after it has been actually incurred is
1.historical (Right)
2.standard
3.
4.
214 649399 A cost centre is a
1.location for which cost is incurred (Right)

2.an organisation
3.
4.
215 649401 A cost centre which is engaged in production activity is called
1.production cost centre (Right)

2.process cost
3.
4.
216 649402
One of the following is not a costing system
1.marginal costing (Right)

2.uniform costing
3.
4.
Page 36 of 46
217 649403 Cost ascertainment involves
1.ascertainment of cost (Right)

2.estimation of cost
3.
4.
218 649404 Cost which can be identified with the output is called as
1.Product cost
2.Direct cost (Right)
3.
4.
219 649405 Interest on capital is
1.Imputed cost (Right)

2.Direct cost
3.
4.
220 649406 Payment to other parties is called as
1.Out of pocket cost (Right)

2.Future cost
3.
4.
221 649407 Cost which is relevant for decision-making is
1.Relevant cost (Right)

2.Opportunity cost
3.
4.
222 649408 Overheads which are incurred in connection with factory are
1.Factory overheads (Right)

2.Prime cost
3.
4.
223 649409 The first step in budgets is the preparation of
1.the budgeted income statemen

2.budgeted cash flow
3.none of above (Right)
4.
Page 37 of 46
224 649410
according to flexibility budgets can be
In an income statement segmented by sales departments, salaries to departmental salespeople would be an example of a "common" fixed cost A)
True B) False
2
Return on assets and residual income are two commonly used measures of an investment cost center's performance. A) True B) False
1.fixed
2.flexible
3.both (Right)
4.
225 649411 When a budget is administered wisely, it will
1.The budget should not provide a framework for performance evaluation

2.The budget should provide a framework for performance evaluation (Right)
3.
4.
226 649412 The master budget does NOT contain which of the following?
1.financial budget
2.responsibility budget (Right)
3.
4.
227 649413 A responsibility center where the manager is accountable for only the revenues and costs is a(n)
1.cost centre
2.profit centre (Right)
3.
4.
228 649414 purchase requisition is given by
1.purchse department (Right)

2.selling department
3.
4.
229 649415 ..... copy of purchase order is prepared
1.2
2.3 (Right)
3.
4.
230 649416 EOQ stands for
1.economic order quantity (Right)

2.economic order quality
3.
4.
Page 38 of 46
231 649417 LIFO stands for
1.last in first out (Right)

2.lowest in first out
3.
4.
232 649418 FIFO stands for
1.fastest in first out

2.first in first out (Right)
3.
4.
233 649419 A promisor can perform
1. the promise himself

2.the promise through his representa-tive competent to perform
3.both (Right)
4.
234 649420 promisee can accept the performance (a) from the promisor himself
(b)
1.from the representative of the promisor competent to perform

(Right)
2.from a third person
3.
4.
235 649421 In case of joint promise, generally the performance must be by
1. all the promisors jointly

2.any one of them individually (Right)
3.
4.
236 649422
Cost which does not require current cash payment is
1.Book cost (Right)

2.Cash cost
3.
4.
237 649423
The cost which remains constant irrespective of output upto capacity limit is
1.Fixed cost (Right)

2.sunk cost
3.
4.
Page 39 of 46
238 649424 Variable cost is also known as
1.Product cost (Right)

2.Indirect cost
3.
4.
239 649425
The cost which is directly chargeable to the product is
1.Indirect cost
2.Direct cost (Right)
3.
4.
240 649426 packing is a
1.Direct Materials
2.Selling cost (Right)
3.
4.
241 649427 Cost of Grease & oil is a
1.Direct cost
2.Indirect material (Right)
3.
4.
242 649428 Cost determined in advance on the basis of scientific analysis of circumstances is
1.Estimated cost (Right)

2.Standard cost
3.
4.
243 649429 Conversion cost includes
1.Direct labour
2.Direct labour & factoverheads (Right)
3.
4.
244 649431
Raw material directly identifiable with the product is
1.Direct materials (Right)

2.Process materials
3.
4.
Page 40 of 46
245 649432 Variable cost per unit remains
1.constant (Right)
2.30-65ºC
3.flexible
4.65-220ºC (Right)
5.220-350ºC
6.350-450ºC
246 649433
The function of Purchase Department is
1.purchase of materials (Right)

2.sale of scrap
3.
4.
247 649434
Purchase order is a
1.request to the supplier to supply materials (Right)

2.request to the supplier to verify the stock
3.
4.
248 649435
Stock levels are fixed to
1.control inventory (Right)

2.purchase material
3.
4.
249 649436
Maximum level indicates
1.maximum inventory to be kept (Right)

2.minimum inventory to be kept
3.
4.
250 649439 Minimum inventory level is
1.minimum stock to be maintained

2.maximum stock to be maintained (Right)
3.
4.
Page 41 of 46
251 649440 The essentials of sound material control procedure include
1.Coordination
2.Reporting
3.All of the above (Right)
4.
252 649441 The objective of material control is
1.Adequacy of inventory
2.Effective storage
3.All of the above (Right)
4.
253 649444 EOQ is
1.Most economical size of order (Right)

2.Most minimum size of order
3.
4.
254 649445 EOQ is decided on the basis of
1.Carrying cost of inventory

2.Ordering cost of Inventory
3.both (i) & (ii) (Right)
4.
255 649446 Order should be placed with the supplier when the inventory touches
1.Re±order level (Right)

2.maximum level
3.
4.
256 649447 Average inventory is
1.Opening inventory
2.Closing inventory
3.None of the above (Right)
4.
257 649449 EOQ is the _____ size of the order at that point ordering and carrying costs are minimised
1.Optimum (Right)
2.Minimum
3.
4.
258 649450 In ABC analysis µC¶class items require
1.Loose control (Right)

2.Moderate control
3.
4.
Page 42 of 46
259 649451 In ABC analysis µA¶class items require
1.Loose control
2.Tight control (Right)
3.
4.
260 649452
In µmake or buy¶decision, it is profitable to buy from outside only when the supplier¶s price is below the firm¶s own ______________.
1.Fixed Cost
2.Variable Cost (Right)
3.
4.
261 649453 A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is
known as:
1.Zero base budget
2.Flexible budget (Right)
3.
4.
262 649454 _________ is also known as working capital ratio.
1.Current ratio (Right)
2.Quick ratio
3.
4.
263 649456 Idle time is
1.Paid by the employer

2.Time wasted by the workers (Right)
3.
4.
264 649457 Wages in normal idle time should be charged to
1.Office overheads
2.Factory overheads (Right)
3.
4.
265 649458 Overtime
1.A
2.B
3.C (Right)
4.
Page 43 of 46
266 649460 The objective of inventory management is to
1.Optimise investment in current assets

2.Optimise investment in inventory (Right)
3.
4.
267 649461
Purchase requisition is
1.an order for supply of materials

2.a requirement of material (Right)
3.
4.
268 649462
Purchase order is
1.A (Right)
2.sent by the purchase officer to supplier.
(Right)
3.a request to return the material.
4.B
5.C
6.D
269 649463
Bin Card is
1.a inspection note

2.a continous record of stock stored (Right)
3.
4.
270 649464
A store ledger is
1.an evidence of delivery of materials

2.a ledger which shows movement of each item of materials (Right)
3.
4.
Page 44 of 46
271 649465
Bill of materials
1.is an invoice sent by the supplier (Right)

2.helps to calculate the cost of materials of a job.
3.
4.
272 649466
Material control includes
1.inventory control (Right)

2.control over labour
3.
4.
273 649467 Under periodic inventory control
1.stock is verified at the end of a certain period (Right)

2.stock is verified continuously
3.
4.
274 649468 Under perpetual inventory control
1.stock is verified continuously (Right)

2.stock is verified periodically
3.
4.
275 649469
ABC Analysis is
1.a technique under which control is always best

2.a technique of selective control (Right)
3.
4.
276 649470
Issue of materials during a period of time is priced at the latest purchase cost under
1.FIFO
2.LIFO (Right)
3.
4.
Page 45 of 46
277 649471
Stores Department maintains a record in which a separate folio is maintained for each item
1.Stores Ledger
2.Stock Register (Right)
3.
4.
278 649472
In times of rising prices, the pricing of issues will be at a more recent current market prices in
1.FIFO
2.LIFO (Right)
3.
4.
279 649473
The inventory is valued at the most recent market prices and it is near to the valuation based on replacement cost in
1.FIFO
2.LIFO (Right)
3.
4.
280 649474
When prices fluctuate widely, the method that will smooth out the effect of fluctuations is
1.Simple Average (Right)

2.Weighted Average
3.
4.
281 649475
In the method, the charge to production is not at actual cost
1.Weighted Average
2.Standard Price
3.All of these (Right)
4.
282 649477 Issue of material under _____ method is from oldest lots
1. FIFO (Right)
2.LIFO
3.
4.
Page 46 of 46
283 649478 Trade discount
1.Increases cost of material

2.Decreases cost of material (Right)
3.
4.
284 649479
Time recording becomes necessary
1.where the overhead recovery rates are based on labour hours (Right)
2.where the recovery rates are based on machine hours.
3.
4.
285 649480
Clock Card is placed at
1.the entrance of the office

2.the entrance of the factory. (Right)
3.
4.
286 649481
A total variance is best defined as the difference between total
actual cost and total cost applied for the actual output of the period.
1.yes (Right)
2.no
3.
4.

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Question Details of Subject :QUIZ-CMC-211

QNo Question Id Question Description

1.Cost ascertainment, cost presentation, cost control (Right)

1.not the same (Right)

1.prime cost (Right)

1.factory cost (Right)

1.Earning extra profit

1.(a) Product costs

Which of the following would not be included on Costing?

3.Timber/ Wood in furniture

1.direct manufacturing labor costs

3.work in process cost

4.Both B and C (Right)

1.A. finished goods inventory

2.period costs (Right)

1.turnover generated by labour

Select correct option:

1.Rent of factory + factory lighting bill + Directors salaries

2.Rent of factory + factory lighting bill + Factory employees salaries (Right)

3.General Cost Center

4.Head Office (Right)

3.Salaries of Factory Clerk

4.All of the given (Right)

2.Material available for use (Right)

1.Per unit cost will increase

1.accounting of material received (Right)

1.Maximum consumption x Maximum re-order period (Right)

1.maximum and equal

1.provide lowest value of closing stock and profit

1.provide lowest value of closing stock and profit

1.should be charged to the job directly (Right)

1.Rate of change in composition of labour force during a specified period (Right)

1.Disability, making a worker unfit for work (Right)

1.all direct cost

1.cost allocation (Right)

1.only service department

1.one rate for whole factory (Right)

1.Wage rate increase

1.Capital cost of a new collection vehicle

2.(b) Depreciation of the machinery

the firm¶s own

is a detailed budget of cash receipts and cash expenditure incorporating both

revenue and capital items.

1.cash budget (Right)

1.fixed overhead (Right)

1.material are purchased to specific job (Right)

1.Material requisition (Right)

1.is an invoice sent by the supplier. (Right)

1. inventory control. (Right)

1.product-cost cross subsidizing (Right)

1.budgeted direct cost rate

1.in put unit level costs

1.refined cost system (Right)

1.activity level cost

1.product over costing (Right)

1.no cost pool

1.activity based costing (Right)

1.individual sustaining costs

1.cost hierarchy (Right)