Cost Accounting Important MCQs with Answers
1. Direct expenses are such expenses?
A) Which are directly paid to the
(B) Which are directly associated with the purchase
Which are directly associated with the sale
All of above
2. Which of the following expressions is incorrect?
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
Under applied overhead
C) Understatement of Cost of Goods
(D) Inventory cost is too low
4. Under the
Halsey wage plan, a worker is paid?
A) At a time rate higher than the
to his efficiency
C) At a double rate for
(D) Normal wages plus bonus
5. When a standard output is 10 units per hour and actual output is 12 units per hour,
the efficiency is?
6. Which of the following is a time-based incentive wage
A) Halsey Premium Plan
Weir Premium Plan
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
C) Cost of goods manufactured
(D) Cost of goods Sold
8. Which of the following is not included under the head of
A) Indirect Labor
(B) Indirect Expense
9. Direct Labor is an element of?
A) Prime cost
C) Total production cost
(D) All of these
predetermined overhead rate is calculated as?
total manufacturing overhead divided by the budgeted activity level of application
(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