Cost Accounting Important MCQs with Answers

 Cost Accounting Important MCQs with Answers

1.         Direct expenses are such expenses?

A) Which are directly paid to the
employee                 

(B) Which are directly associated with the purchase

C) 
Which are directly associated with the sale            

(D)
All of above

2.         Which of the following expressions is incorrect?

A) 
Gross profit – operating expenses = operating income                                                                               (B) Sales – cost of goods
sold – operating expenses = operating income

C) Operating income +
operating expenses = gross profit                                                         

 (D) Operating expenses – cost of goods sold = gross profit

3.         When too
much overhead cost is charged to products as they are made, the result is?

            A) Over-applied overhead                                        

              (B)
Under applied overhead

C) Understatement of Cost of Goods
Sold                   

(D) Inventory cost is too low

4.         Under the
Halsey wage plan, a worker is paid?

A) At a time rate higher than the
usual rate                  

(B) According
to his efficiency

C) At a double rate for
overtime                                   

(D) Normal wages plus bonus            

G Ads:

5.         When a standard output is 10 units per hour and actual output is 12 units per hour,
the efficiency is?

A) 
80%                                                                       

(B) 100%

C) 110%                                                                      

(D)
120%

6.         Which of the following is a time-based incentive wage
plan?

A) Halsey Premium Plan                                              

(B) Halsey
Weir Premium Plan

C) 
Rowan Premium Plan                                            

(D) All of the given options

7.         Which of
the following cost is used in the calculation of cost per unit?

A) Total production cost                                               

B) Cost of goods available
for sales

C) Cost of goods manufactured                               

(D) Cost of goods Sold

8.         Which of the following is not included under the head of
FOH cost?: 

A) Indirect Labor                                                          

(B) Indirect Expense

C) 
Indirect Material                                                      

(D)
Direct labor

G Ads:  

9.       Direct Labor is an element of?

A) Prime cost                                                               

(B)
Conversion cost              

C) Total production cost                                               

(D) All of these

10.      The
predetermined overhead rate is calculated as?

(A) Budgeted
total manufacturing overhead divided by the budgeted activity level of application
base

(B) Budgeted total manufacturing
overhead divided by the actual activity level of the application base

(C) Actual total manufacturing
overhead divided by the budgeted activity level of application base

           (D) Actual total manufacturing overhead divided by the actual activity level of application base