Sky Education

Costing
Multiple choice question’s
Q Question Option1 Option 2 Option3 Option 4 Correct option
.n
o.
Costing
1 According to CIMA Cost Cost Cost Costing
,England "the technique" accounting accountan
and cy
process of ascertaining
cost is called_____

2 Cost accounting is Governe- Extent Internal Sharehold Internal users

directed towards the needs ment users users ers
of_______

3 Cost information Introduction Planning Decision- External External

facilitates many important ofproduct &control making reporting reporting
decisions except________

4 The main function of cost Internal External Govenrme Bank Internal

accounting is______ nt

5 Costs which are Imputed Sunk costs Historical Opprotunit Historical

ascertained after they costs costs y costs costs
have
been incurred are known
as___________

6 Prime csts plus variable Production Marginal Total cost Cost of Marginal cost
overheads is known as_ cost cost sales

7 The cost of a special Relevent Sunk cost Historical Opportunit Relevent cost
device that is necessary cost cost y cost
if a special order is
accepted is a _____

8 The three major elements Direct Indirect Direct Facotry Indirect

of product costs are material cost labour ovehrads labour
all except___________

9 The main obejctive of cost Recording Fixation of Cost Maximise Cost control
accounting_____ cost selling control profit
price

1 The functional Prime cost production Mareting Administa Prime cost

0 classification of costs cost cost rtion cost
include the
following
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Costing
Multiple choice question’s
except_________

1 A functional classification Product cost Administr Selling Variable Fixed cost

1 of costs would ative expense cost
expense
Classify "depreciation on
office equipment "as

1 Variable cost per Varies Remain Increase Decrease Remains

2 unit________ whenoutput costant when when constant
varies output output
Increase Decrease

1 Continous stock taking is Annual stock Perpetual ABC Bin card Perpetual
3 apart of_____ taing inventory analysis inventory

1 Which of the following is Loss due to Pilferage Loss due Loss due Pliferage
4 considered to be accidents to careless to
breaking
normal loss of handling the bulk
material________ of material

1 Which of the following Purchase Store Goods Store Stores credit

5 documents is used for requisition requisition received credit note note
note note note
issuing materials to
production
departments?_______

1 The storekeeper should Minimum Maximum Re-order Average Re-order level

6 initiate a purchase level level level level
requisition when stock
reaches_________

1 Bin card maintained by Accounts Store costing purchase Store

7 ________ department departmen departmen departmen department
t t t

1 _____ technique is a ABC Input Inventory EOQ ABC

8 relative control of output turnover
materialas ratio
ratio

1 The cost of goods Purchasing Ordering Stockout Carrying Purchaisng

9 acquired from supplier cost cost cost cost cost
including freight or
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Costing
Multiple choice question’s
transportation cost
are____

2 The document which is Material Goods Bill of Inventory Goods receied

0 prepared after record note received material control note
note
receiving and inspecting
material___

2 The cost associated with Quality costs Labour Ordering Carrying Carrying costs
1 storage are an example costs costs costs
of which cost storage?___

2 ______ is the purchase of Reorder FIFO JIT EOQ JIT

2 material a such time level
that delivery immediately
proceeds demand

2 Material demand in Scrap Defective Waste Spoilage Spoilage

3 manufacturing operations
in
such a way that they
cannot be rectifed and
bought back to normal
specification is called____

2 Calcualte EOQ from the 6000 12000 10000 14000 10000

4 details:
Annual usage - RS 12,000
cost of placing and order
RS 60 , carrying cost 10%
inventory value________

2 Material issued are priced FIFO Standard LIFO Weighted LIFO

5 at the latest price_____ price average

2 Wage sheet is prepared Time- Personnel Payroll cost Payroll dept.

6 by_______ keeping dept. dept. accounting
dept. dept.

2 Time study for___ Meaurement Fixation of Ascetrain Ascrtainm Fixation of

7 in work ment of ent of standard time
standard actual labour
time hours cost

2 Which of the following is Foreman Machine Sweeper Watchman Machine

8 direct worker?_____ operator operator
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Costing
Multiple choice question’s

2 Idle timeis________ Time spent Time spent Time pent Time Time spent by
9 by worker in by workers by spent by workers
woekers workers
factory in office off their on their offtheir work
work job

3 Piece workers are apid on Output sold Output Output in Input Output
0 the basis of ___ produced stock received produced

3 Time wages are paid on Actula time Standard Time Overime Actual time
1 wokers______ time saved

3 Merricks multiple piece Two rates Three rates Four rates Five rates Three rates
2 rate system has_____

3 In which of the following Halsey Rowan Taylor Gantt Taylor

3 palns time wages
are not
guaranted?________

3 Under gantt task and 50% 60% 83.50% 100% 100%

4 bonus paln no bonus
is payable to a worker if
his efficiency is less than
___

3 Overtime period is At normal Below the At 50% of At 90% of At 50%of

5 paid_____ rate normal normalrate normal normalrate
rate rate

3 Number of methods TW0 Three Four Five Three

6 available for calculartion
of labour turnover
is________

3 Underemorson's 50% 66.67% 83.33% 100% 50%

7 efficiency system no
bouns
is payable when
efficiency is upto_______

3 Differnce between standard Overtime Actual Idle time Idle time

8 attendance time and job time time
time
is________
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Costing
Multiple choice question’s

3 General overheds is Direct wages Floor area Number of Direct Direct wages
9 apportionment to employees materials
departments on the basis
of__________

4 Priamry packing is part Prime cost Selling Factory Distributio Prime cost
0 of________ overheads overheads n
overheads

4 Salary of foreman should Fixed Variable Semi-fixed Distributio Semi-fixed

1 be classified ______ overheads overheads n overheds and semi-
variable
semi-
variable
overheads

4 Bad debt is an example Production Administa Selling Distributio Selling OHS

2 of____________ OHS rtion OHS OHS n OHS

4 Warehouse is an example Production Administa Selling Distributio Distribution

3 of________ OHS rtion OHS OHS n OHS OHS

4 Expenses such as rent and Indirect Diretc Joint Buy Indirect

4 depreciation expenses expenses expenses expenses expenses
of a building shared by
several department
are____

4 A typical overhead cost Distribution Internal Compensa Design Compensation

5 is_________ audit tion of paln manager
plan
manager

4 Selling and distribution Cost of Repacking Transporta Demurrag Demurrage

6 overhead does not include warehousing cost tion cost e charges charges

4 Which of the following is Direct labour Overtime Maachine Blanket Overtime rate
7 not a menas whereby rate rate hour rate rate
factory overheads can be
charged out of prodcution
?

4 Which of the following Carriage Purchase Sale Interest Interest paid

8 items is not included in inward items commissio paid
n
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Costing
Multiple choice question’s
prpearation of a cost
sheet?_________

4 What is prime Total direct Total Total non- Total Total direct
9 cost?_______ cost only indirect prodcution production costts only
cost only cost
Cost

5 Overhead consist of all Indirect Factory Direct Indirect Direct labour

0 the following material uitlities labour labour
except______

5 Direct materials+Direct Work costs Cost of Cost of Prime cost Prime cost
1 labour + Direct production sales
expenses=____

5 Prime cost+ factory Fixed cost Wok cost Cost of Cost of Works cost
2 overheds=_______ production goods sold

5 _________ of opening Under Over Cost Selling Over

3 stock in cost accounts is valuation valuation price valuation
added
to costing profit to find
out financial profit

5 Depreciation on fully Purely Notioanl Purley Additional Notinal charge

4 depreciated assets still in finanical charge financial charge
use is charge income

5 In reconciliation statement Added to Deducted Ignored Deducted Deducted

5 expenses shown only in Financialpro from from from financial
fit Finanical costing profit
cost accounts are_______ Profit profit

5 In reconciliation statement Added to Deducted Added to Deducted Deducted

6 closing stock undervalued costing from finanical from from costing
profit cost costing profit
in financial accounts financial profit
are__________ profit

5 Inventory turnover ratio Sales Average Profit Prime cost Average

7 should be relation inventory inventory
between the cost of goods
sold and___

5 The need for reconciling To comply To To ensure To fix To ensure the

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Costing
Multiple choice question’s
8 cost and financial with facilitate the standard reliability
accounts statutory audit work
arise________ obligation reliability

5 Transfer fees received Purely Notional Purely Purely Purelyfinancia

9 is_______ financial charge financial costing l income
charge income income

6 Rent receivable Purely Notional Purely Purely Purely

0 is_________ financial charge financial costing financial
charge income income income

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