COST ACCOUNTING (MCQS) - Study For Buddies

Sunday, December 27, 2020

COST ACCOUNTING (MCQS)

S.Y B.COM
SEMESTER - 3

MID SEMESTER EXAMINATION
COST ACCOUNTING (CA)
MCQS (MATERIAL COST)

(1) Direct material is a

(A) Fixed cost
(B) Variable cost 
(C) Semi variable cost

(2) Direct material is a

(A) Manufacturing cost
(B) Selling and distribution cost
(C) Administration cost
(D) Any of the above

(3) In manufacturing industries, the most important element of cost is

(A) Material
(B) Labor 
(C) Overheads

(4) Which of Use relieving is an accounting record? 

(A) Bill of Material 
(B) Bin card 
(C) Stores ledger 
(D) All of these

(5) Which of the following documents is used for issuing materials to productions departments?

(A) Purchase Requisition Note 
(B) Goods Received Note
(C) Stores Requisition Note 
(D) Stores Crodit Note

(6) Which of following is considered to be a normal loss of materials? 

(A) Loss due to accidents 
(B) Pilferage 
(C) Loss due to careless handling of materials
(D) Loss due to breaking the bulk 
(E) All of these

(7) According to which of the following methods of pricing, issues are close to current economic values? 

(A) First-in-first-out price 
(B) Weighted average price 
(C) Last-in-first-out price
(D) Highest-in-first-out price

(8) In which of the following methods of pricing, costs lag behind the current economic values?

(A) First-in-first-out price
(B) Last-in-first-out price 
(C) Replacement price
(D) Weighted Average Price

(9) Which of the following methods of stock control aims at concentrating efforts on selected items of materials?

(A) Perpetual inventory system 
(B) Materials turnover 
(C) Maximum, minimum and re-order level setting 
(D) ABC analysis

(10) In base stock method of pricing the material issues, the tem 'base stock' represents the 

(A) Quantity of stock being issued 
(B) Minimum stock
(C) Stock in balance 
(D) Maximum stock 

(11) Which of the following items of cost should NOT be treated as direct matenal ?

(A) Electricity representing 90% of the total cost 
(B) Thread used in stitching garments
(C) Sand paper used in production 
(D)  All of the above

(12) Continuous stock-taking is a part of

(A) Annual stock-taking 
(B) Perpetual inventory system 
(C) Periodic inventory system 
(D) ABC analysis

(13) The classification of items in ABC analysis is made on the basis of 

(A) Investment value of materials 
(B) Quantity of materials consumed
(C) Consumption value of materials 
(D) All of these

(14) In which of the following methods, issues of materials are priced at pre-determined rate?

(A)  Inflated price method
(B) Replacement price method
(C) Standard price method 
(D) specific price method 

(15) In which of the following methods, materials are issued at the price prevailing at the time of issue? 

(A) Standard price method 
(B) Specific price method 
(C) Inflated price method 
(D) Replacement price method 

(16) The storekeeper should initiate a purchase requisition when stock reaches

(A) Minimum level 
(B) maximum level
(C) re-order level 
(D) average level

(17)  Which of the following material losses should be trarisferred to Costing Profit and Loss Account? 

(A) Loss by evaporation 
(B) Loss due to b
(C) Loss due to improper storage of materials 
(D) All of these

(18) When material prices fluctuate widely, the method of pricing that given absurd results is 

(A) Simple average price
(B) Weighted average price 
(C) Average price 
(D) Inflated price

(19) When prices fluctuate widely, the method that will smooth out the effect of fluctuations Is 

(A) LIFO
(B) FIFO 
(C) Simple average 
(D) Weighted average

(20) In which of the following methods, the charge to production is at actual cost? 

(A) Weighted average price 
(B) Standard price 
(C) Replacement price
(D) FIFO

(21) Expected annual usage of a particular raw material is 2,00,000 units and the economic order quantity is 10,000 units. The invoice cost of each unit is Rs. 500 and the cost to place one order is Rs. 80. The average inventory is. 

(A) 1, 00,000 units
(B) 5,000 units 
(C) 10,000 units 
(D) 7,500 units
 
(22) Taking the data in Q.21 above, the estimated annual ordering cost is

(A)  Rs. 1,600
(B) Rs. 10,000 
(C) Rs. 3,200
(D) Rs. 5,000 

(23) On the basis of data given in Q.21, number of order to be placed in each year are 

(A) 10
(B) 50 
(C) 20 
(D) 100

(24) When material prices are showing a rising trend, which method of pricing will show lower cost of production.

(A) FIFO
(B) LIFO
(C) Weighted average
(D) Replacement price

(25) ln periods of rising prices, which method of pricing shows higher stock values 

(A) FIFO
(B) LIFO 
(C) Weighted average 
(D) Replacement price

(26) In which method, prices charged to production are at the current prices prevailing in the market

(A) FIFO
(B) LIFO 
(C) Weighted average 
(D) Replacement price

(27) When prices are showing a falling tendency, which method of pricing of material issues will show higher closing stock value 

(A) FIFO
(B) LIFO 
(C) Weighted average 
(D) Specific price method

(28) When production is below standard specification or quality and cannot be rectified by incurring additional cost, it is called 

(A) Defective
(B) Spoilage 
(C) Waste 
(D) Scrap

(29) Materials losses are due to some of the following reasons:

(i) Fire accident
(ii) Evaporation
(iii) Theft
(iv) Pilferage
(v) Breaking the bulk
(vi) Defective workmanship 

Which of these may be classified as normal losses?

(A) (iv), (v), (vi)
(B) (ii), (iv), (v), (vi)
(C) (i), (iii), (vi)
(D) (iii), (iv)
(E) All of these

(30) Documents used in a material control system include the following

(i) Purchase Requisition Note
(ii) Bill of Materials
(iii) Purchase Order
(iv) Stores Requisition Note 
(v) Good? Received Note
(vi) Materials abstract

Which of these documents relate to purchase of material in a centralized purchase Organization?

(A) (i), (ii), (iv)
(B) (ii), (iii), (v)
(C) (iii), (iv), (v) 
(D) (i), (iv), (v) 

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