2. ……………….is the value of a benefit where no actual cost is incurred.
Correct : A. Imputed
3. ……………is the cost which involves payment to outsiders.
Correct : A. Out of pocket cost
4. ………………… is the maximum possible alternative earning that might
have been earned if the productive capacity is put to some alternative use.
Correct : A. Opportunity
5. An item of cost that is direct for one business may be …………..for
another business.
Correct : C. Indirect
6. The total of all direct expenses is known as …………..cost.
Correct : A. Prime
7. ……………costs are partly fixed and partly variable in relation to
output.
Correct : C. Semi-variable
8. An opportunity cost is …………………..
Correct : A. the advantage foregone
9. Works cost is a total of………………
Correct : B. Direct material, direct labour, direct or chargeable expenses and works expenses
10. An opportunity cost does not involve…………
Correct : A. Cash outlays
11. Variable costs change ……………………with change in output.
Correct : A. Proportionately
12. Fixed cost per unit …………………….with increase in output.
Correct : A. decreases
13. Depreciation is…………………expenditure.
Correct : D. Semi-variable
14. Out of pocket costs involve payment to …………………
Correct : A. Outsiders
15. Added value is the change in…………………
Correct : A. Market value
16. …………………. Accounting is not only a positive science but also a
normative science because it includes techniques of budgetary control and standard costing.
Correct : B. Cost
17. Material control does not cover the following stage.
Correct : D. production
18. Material control aims at achieving effective…………
Correct : A. Material management
19. Stores Ledger is maintained in the…………………
Correct : C. cost accounting department
20. Stock verification sheets are maintained to record the results of ……….
Correct : A. Physical verification
21. Stock Adjustment Account is debited with ……….and credited with ………..
Correct : B. shortage of stock, surplus
22. Bin card is a record of ………….only.
Correct : C. quantity
23. Bin card is maintained by the…………….
Correct : C. storekeeper
24. Material abstract is also known as ………………
Correct : A. Material issue analysis sheet
25. Material should be issued by the store keeper against……………….
Correct : C. both a & b
26. First in first out method of valuing material issues is suitable in times
of…………
Correct : B. falling prices
27. Last in first out method is suitable in times of………………
Correct : A. Rising prices
28. Average cost method of valuing material issues is suitable
when………….
Correct : C. prices fluctuate considerably
29. Inflated price method of valuing material issues is suitable
when…………
Correct : A. Materials are subject to natural wastage
30. Specific price method of valuing material issue is used when………….
Correct : A. Materials are purchased for specific job or work order
31. Market price method is considered to be the best method
when…………..
Correct : A. Quotations have to be sent
32. A bill of material serves the purpose of…………………
Correct : A. Material requisition
33. A bill of material is prepared in case of a …………………job
Correct : B. non-standardized job
34. Stock verification sheets are maintained to record the results of………
Correct : A. Physical verification
35. The quantity of material to be ordered at one time is known as…………
Correct : A. Ordering quantity
36. …………………represents that quantity of material which is normally
ordered when a particular material reaches reordering level.
Correct : D. Re-order quantity
37. The principle types of inventories are raw materials and ,…………and
finished goods
Correct : B. Goods-in-progress
38. Re-ordering level = Maximum consumption x …………………………
Correct : C. Maximum re-order period
39. Inventory turnover ratio = Cost of inventory consumed during the
period ÷ Cost of ……………………held during the period
Correct : A. Average inventory
40. Inventory turnover in days = Days during the period ÷………………..
Correct : A. Inventory turnover ratio
41. ………….is a technique of material cost control which leads to low
carrying cost as a result of low investment in inventory
Correct : B. JIT Inventory System
42. ………………is a technique of stock control which leads to saving of
time of the management because attention is required to be paid only to some of the items rather than on all the items.
Correct : A. ABC Analysis
43. ……………….. is used primarily for control of spare parts.
Correct : C. VED Analysis
44. Inventory turnover ratio = Cost of …………………..during the period ÷
Cost of average inventory held during the period.
Correct : A. Inventory consumed
45. Re-ordering level = ……………………. X Maximum re-order period
Correct : C. Maximum consumption
46. ……………obviates the necessity for the physical checking of all items
of stores at the end of the year and thereby avoids dislocation of production.
Correct : D. Perpetual Inventory System
47. …………….forms part of cost of production.
Correct : B. normal waste
48. ………………does not form part of production.
Correct : A. Abnormal waste
49. Material losses due to abnormal reasons should be transferred
to…………………
Correct : B. Costing Profit and Loss Account
50. Defectives are that portion of production which can be ………………at
some extra cost of re-operation.
Correct : B. rectified
51. ……………….is a method of evaluating the job in terms of its money
value.
Correct : B. Job evaluation
52. The requirements of a particular job are known as ……………………
Correct : A. Job description
53. Qualities demanded from the job holder is technically known as ……………………
Correct : B. job specifications
54. ………………….is concerned with discovery of facts concerning a job
and ……………….is concerned with ascertaining the money value of a job.
Correct : C. job analysis, job evaluation
55. For conducting …………………..workers are studied at their jobs and
all their movements and motions are noted.
Correct : B. Motion study
56. …………….. is the assessment of the relative worth of jobs within
a company whereas ………….is the assessment of the relative worth of man behind the job.
Correct : A. Job evaluation , merit rating
57. ………………..is maintained to know how the worker’s time shown by
the time card is spent on various jobs.
Correct : C. job cards
58. In time wage system, wages are paid according to the……………….
Correct : B. time
59. Under piece rate system of wage payment, payment is made according
to the…………………
Correct : A. Quantity of work done
60. For a work order, standard time and time taken are 20 hours and 15
hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be……………….
Correct : B. 37.50
61. Taylors differential piece rate system provides for higher rate to
…….workers.
Correct : B. efficient
62. …………………..is most suitable when quality of work is of prime
importance.
Correct : B. time wage system
63. Formula of calculation of wages under Halsey Premium System is……
Correct : B. T x R+ % (S-T) R
64. Under Merrick’s multiple piece rate system, 110% of the ordinary
piece rate is given to workers whose level of performance is between……. of the standard output.
Correct : A. 83% and 100%
65. Under Merrick’s multiple piece rate system, 120% of the ordinary
piece rate is given to workers whose level of performance is between……………….of the standard output.
Correct : B. 100% and 120%
66. Under Merrick’s multiple piece rate system, ordinary piece rate is
given to workers whose level of performance is between……………….of the standard output.
Correct : C. 0% and 83%
67. In …………………………., two piece rates are set for each job.
Correct : C. Taylor’s differential piece rate system
68. Basis of apportionment of stores service expenses is ………………..
Correct : A. Value of materials consumed
69. Basis of apportionment of welfare department expenses is…………..
Correct : B. Number of employees
70. Basis of apportionment of crèche expenses is ……………..
Correct : B. number of female employees
71. Under step method of re-apportionment of costs of service
departments, the cost of last service department is apportioned only to the …………..
Correct : A. Production departments
72. Machine hour rate is obtained by dividing the total running expenses
of a machine during a particular period by the…………
Correct : A. Number of hours
73. ……………..is the amount by which the absorbed overheads fall short
of the actual amount of overheads incurred.
Correct : B. under absorption of overheads
74. …………….is the excess of overheads absorbed over the actual amount
of overheads incurred.
Correct : A. Over absorption of overheads
75. When …………………….is used on the basis of budgeted overheads
and the rate is applied to the actual base, the actual overhead expenses may be different from the charged overheads.
Correct : A. A predetermined rate
76. Expenses incurred during production other than direct materials and
direct labour are called…………..factory expenses; those charged to production on estimated basis are called …………….
Correct : A. Actual, applied
77. The per unit expense of the ……………portion factory overhead varies
with the volume of production while………………..portion remains the same with volume.
Correct : A. Fixed, variable
78. …………………expenses are excluded from cost.
Correct : B. abnormal
79. Such expenses which are included (even though they are not incurred)
for taking managerial decisions are called………………
Correct : A. Notional expenses
80. ……………….expenses are partly fixed and partly variable.
Correct : D. semi-variable
81. Unsuccessful research expenditure should be …………….. cost
accounts.
Correct : A. Excluded from
82. Salary paid to general manager is an item of
……………………expenses.
Correct : A. Fixed
83. Fancy packing is an example of ………….expenses.
Correct : A. Selling
84. Telephone expense is …………….expense.
Correct : B. semi-variable
85. Primary packing is an item of ………………
Correct : B. prime cost
86. When factory overhead control account has an ending debit balance,
factory overhead was………………
Correct : B. under applied
87. Under applied or over applied factory overhead should be
Correct : C. apportioned among cost of goods sold and applicable to inventory
88. Credit and collection cost is an item of
Correct : A. Selling overhead
89. Warehousing cost is an item of
Correct : B. distribution overhead
90. In …………………..each job is a cost unit to which all costs are
assigned.
Correct : B. Job costing
91. Material Costs of each job are determined from……………
Correct : C. both a & b
92. Printers use ………………costing.
Correct : C. job
93. Each job has a ………….. prepared for it that bears the job number
and which is used to collect all cost data relating to job.
Correct : B. Job Cost Card
94. An automobile service unit uses ………………costing.
Correct : C. job
95. Where the work is undertaken to Customers’ special requirements and
each order is of comparatively short-duration, it is called…………..costing.
Correct : A. Job
96. Economic Batch Quantity is an important point to be determined in
industries where …………… costing is employed.
Correct : B. batch
97. Economic Batch Quantity depends on ……………….and
……………..costs.
Correct : B. set-up costs, carrying
98. The ……………costing is applied when a quantity of similar and
identical products are manufactured together as one Job.
Correct : B. Batch
99. The loss incurred on an incomplete contract is transferred to
…………….account.
Correct : B. profit and loss account
100. When the completion stage of the contract is more than half, the profit
to be credited to Profit and Loss account will be equal to…………..
Correct : C. 2/3rd of Notional profit x cash received Work certified