T Com. Semester Cost Account Sample MCQs

J.B.Sawant Education Society’sTikambhai Metha Commerce College Mangaon - RaigadT.Y.B.Com. Semester – VCost AccountSample MCQs1. Cost accountancy is considered an art because it a. Has systematic body of knowledgeb. requires necessary ability and skillsc. involves continuous efforts of cost accountantd. not involves continuous efforts of cost accountant2. “The amount of expenditure (actual or notional) incurred or attributable to a giventhing” is a. Expenseb. Revenue expenditurec. Costd. Value3. Cost accountancy is considered a science because a. It has a systematic body of knowledgeb. It requires necessary ability and skillsc. Involves continuous efforts of a cost accountantd. not involves continuous efforts of cost accountant4. Cost accounting mainly helps the management in .a. Earning profitb. Providing information to managementc. Fixing prices of the productsd. Cost of price5. . is that portion of expired cost resulting from a productive usage ofan asset.a. Costb. Expensec. Lossd. profit

6. Expired cost is recorded in a. Balance Sheetb. Profit & Loss A/cc. Cash flow statementd. Fund flow statement7. Unexpired cost is recorded in a. Balance Sheetb. Profit & Loss A/cc. Cash flow statementd. fund flow statement8. . is that portion of expired cost resulting from the decline in the servicepotential of an asset that generated no benefit to the firm.a. Costb. Expensec. Lossd. profit9. is a location, person or item of equipment (or group of these) for whichcosts may be ascertained and used for the purpose of control.a. Cost centreb. Revenue centrec. Profit centred. Responsibility centrea. Cost centre b. Revenue centrec. Profit centred. Responsibility centre10. A cost Centre which is engaged in production activity is called .a) production cost Centreb) process cost Centrec) impersonal cost Centred) production unit11. Cost which can be identified with the output is called as .a) product costb) direct costc)fixed cost12. Cost of designing is a) production costb) indirect costc) direct materiald) direct charges .13. Cost which is relevant for decision-making is .a) relevant costb) past costc) opportunity costd) imputed costd) variable cost

14. Overheads which are incurred in connection with factory are .a) factory overheadb) office overheadc) selling overheadd) Prime cost.15. Variable cost is also known as .a) product costb) period costc) indirect costd) semi fixed cost16. EOQ is .a) most economical size orderb) most minimum size orderc) quantity to be orderd) all of the above17. Minimum Inventory level shows a) maximum inventoryb) minimum inventoryc) both a&bd) only b18. Minimum inventory is to ensure .a) minimum working capitalb) safety of production processc) maximum profitabilityd) maximization profit.19. ABC analysis is a technique developed for a) inventory managementb) inventory controlc) WIP controld) finished stock control20. EOQ is the size of the order at that point ordering and carrying costsare minimized.a) optimumb) minimumc) maximumd) medium

21. The objective of inventory management is to .a) optimum investment in current assetsb) optimum investment in inventoryc) reduce inventory leveld) increase inventory level22. Idle time isa) Paid by Employerb) Not Paid by employerc) Time saved by the employerd) Time wasted by the employer23. Tea & Lunch break isa) Normal idle timeb) Abnormal idle timec) Standard timed) Time saved24. Strikes & Lockouts isa) Normal idle timeb) Abnormal idle timec) Standard timed) Wasted time25. Which of the following statement is true?a) Factory overheads are recovered as a % of costb) Factory overheads are recovered as a % of Direct wagesc) Salary to salesman is a factory overheadd) Direct expenses are a factory overheads26. Charging overheads to individual unit is known asa) Allocationb) Apportionmentc) Absorptiond) Collection27. Proprietary ratio is a .A. Short term solvency ratioC. Profability ratioB. Long term solvency ratioD. Turnover ratio28 . Prime cost is 10,00,000 Works overheads is 6,63,400, Factory costis .A. 16,63,400B. 12,40,000C. 14,50,000D. 10,25,000

29 . Cost of production is 20,64,070 opening stock of finished good is 45,280 and closingstock of finished good is 50,240 cost of good sold is .A. 20,59,110B. 25,00,000C. 23,00,000D. 22,00,00030. Prime cost is equal .A. Direct costB. Factory costC. Direct cost Factory overheadD. Cost of production31. The ratios which reflect managerial effiency in handing the asset is .A.Turnover ratioC.Short term solvency ratioB.Profability ratioD.Long term solvency ratio32. Total cost 23,07,930 profit is 10% on cast the sale is A. 25,000B. 25,3/8,723C. 23,80,000D. 20,25,00033. Under valuation of closing stock in cost A/c.a) Decreases costing profitc) Decreases financial A/c profitb) Increases cost profitd) Increases financial A/c profit34. Re-Conciliation is usually done between :- .a) gross profit and net profitb) previous year’s profit and current year’s profitc) costing profit and financial A/c profitd) current year profit with next year provisions35. Fines and Penalties . financial profit.a) Reducingc) bothb) Increasingd) loss36. In Reconciliation Statement, Closing Stock Overvalued in Financial Account(a) Added to financial profit(b) Deducted from costing profit(c) Deducted from financial loss(d) Added to costing profit

37. In Reconciliation Statement, Opening Stock Overvalued in FinancialAccount(a) added to costing profit(b) deducted from financial profit(c) added to financial loss(d) deducted from costing profit38. In Reconciliation Statement, Depreciation Undercharged in Financial Accounts(a) added to financial profit(b) deducted from costing profit(c) deducted from financial loss(d) added to costing profit39. Profit as per Financial Accounts 57,240Over recovery of works overheads 240Under recovery of office expenses 240 Reconciliation statement will show . (a) Profit as per Cost Accounts - 57.240(b) Profit as per Cost Accounts - 57 7201(c) Profit as per Cost Accounts - 56,760(d) Loss as per Cost Accounts - 57.24040.Profit as per Financial Books3,28,750Factory overheads in cost accounts2,00,000Factory expenses in financial accounts1,93,750Office overheads under-absorbed in cost accounts2,500Reconciliation statement will show(a) Profit as per Cost Accounts - 3,37,500(b) Profit as per Cost Accounts - 3,32,500(c) Profit as per Cost Accounts - 3,25,000(d) Profit as per Cost Accounts - 5,20,00041. Variable costs increase in total due to a. Increase in salesb. Increase in volume of productionc. Increase in profitd. increase in loss42. EOQ is .a) Economical Sizeb) Economical order of Productionc) Economical Order of Productiond) None of the above.

43. ABC Analysis is a technique developed for a) Inventory Managementb) Inventory controlc) WIP Controld) Finished stock Control44. Bin card is .a) a inspection noteb) a continue of stock storedc) a statement of delivery of materiald)a statement of issue of material.45. Power is allocated on the basis of .a) HP of machineb) Cost of machinesc) machine hours of machined) Labour hours46. Electricity charges are allocated on the basis of .a) number of light pointsb) cost of machinesc) Labour hoursd) Factory cost47. Factory overheads are recovered as a .a) % of direct wagesb) % of cost productionc) % of salesd) None of the above48. Office overheads are recovered as a % of .a) direct Materialsb) Direct wages.c) Factory costd) None of the above49. The purpose of inventory control is a) To control flow of raw materialb) To control inventionc) To maintain optimum level of inventoryd) to control cost50 . Calculate EOQ from the details: Annual usage – Rs. 120000, Cost of placing one order– Rs. 60, Annual carrying cost – 10% of inventory value .a. 6000b. 10000c. 12000d. 17000

(a) added to costing profit (b) deducted from financial profit (c) added to financial loss (d) deducted from costing profit 38. In Reconciliation Statement, Depreciation Undercharged in Financial Accounts _ (a) added to financial profit (b) deducted from costing profit (c) deducted from financ