# MBA/MBA Cost and Managerial Accounting Mcq Set 10 Sample Test,Sample questions

## Question: ` Normal stores losses are:`

1.Part of prime cost

3.Part of selling and distribution overheads

4.Written-off to costing and profit and loss account

## Question: `A variable cost is?`

1.One which varies in proportion to the level of fixed cost incurred.

2.One which tends to vary with the level of activity.

3.One which changes over time.

4.One which cannot be estimated with any great degree of accuracy.

1.1,200 items

2.1,400 items

3.1,600 items

4.1,800 items

1.395 units

2.300 units

3.250 units

4.150 units

1.5.13%

2.9.23%

3.9.32%

4.9.28%

## Question: `Cost unit in a college may be`

1.teacher

2.Non teacher staff

3.Student

4.Number of departments

## Question: `Depreciation is a:`

1.Measure of consumption of assets

2.Process of allocation and not of valuation

3.Wear and tear due to use and/or lapse of time

4.All of the above

## Question: `Favorable conditions for the operation of piece rates include:`

1.Homogeneous products

2.Long, uninterrupted run of production

3.Inspection

4.High proportion of indirect labour

## Question: `Group bonus schemes are generally suitable where:`

1.Output depends on individual efforts

2.Output of individual workers can be measured easily

3.It is necessary to create a collective interest in the work

4.Normal loss rate is high

## Question: `How many units would the company have to sell to attain target profits of 600,000?`

1.48,000 units

2.88,000 units

3.106,668 units

4.None of given options

1.32,000

2.48,000

3.8,000

4.10,000

## Question: `If time allowed for a job is 10 hours, time taken for the job is 8 hours and rate of pay is 2 per hour, the bonus to the worker is:`

1.1.20

2.2.00

3.3.20

4.None of the above

## Question: `If, COGS = 50,000 GP Margin = 25% of sales what will be the value of Sales?`

1.200,000

2.66,667

3.62,500

4.None of the given options

## Question: `In automobile industry cost unit is`

1.Number

2.Automobile quality

3.Number of automobile industry

4.Either (a) or (c)

## Question: `Interest on own capital is a:`

1.Cash cost

2.Notional cost

3.Sunk cost

4.Part of prime cost

## Question: `Labour cost control embraces the following activities except:`

1.Recruitment and promotion

2.Formulation of wage policy and payment and accounting for wages

3.Allocation of cost

4.Preparation of financial statement

1.Marketing

2.Production

3.Organization

4.Material

1.Managers

2.Promoters

3.Directors

4.Outsiders

## Question: `Percentage of Margin of Safety can be calculated in which one of the following ways?`

1.Based on budgeted Sales

2.Using budget profit

3.Using profit & Contribution ratio

4.All of the given options

## Question: `Productive causes of idle time include the following except:`

1.Power failure

2.Fall in demand

3.Machine breakdown

4.Waiting for materials, tools, instructions, etc.

1.5.75 per unit

2.6.65 per unit

3.6.0 per unit

4.1 per unit

## Question: `Regular maintenance expenses are:`

1.Capitalized

3.Written-off to costing profit and loss account

4.Part of prime cost

## Question: `Sales commissions are classified as`

1.Prime costs

2.Period costs

3.Product costs

4.Indirect labour

## Question: `Stores ledger is maintained in the ______________ department.`

1.Cost accounting

2.Stores

3.Purchase

4.Production

## Question: `The authorized heads of deduction from wages payable include the following except:`

1.Car allowance

2.Income tax

3.Provident fund

4.Employees'state insurance

## Question: `The contribution margin ratio is calculated by using which one of the given formula?`

1.(Sales - Fixed Expenses)/Sales

2.(Sales - Variable Expenses)/Sales

3.(Sales - Total Expenses)/Sales

4.None of the given options

## Question: `The cost of goods sold is equal to`

1.Total Purchases - Total Sales.

2.Opening stock + Total Purchase.

3.Opening stock - Total Purchases +Closing Stock+ Direct Costs.

4.Opening stock + Total Purchases - Closing Stock + Direct Costs.

## Question: `The difference between gate time and time booked for jobs in respect of a worker in due to the following reasons except:`

1.Change-over time

2.Illness

3.Waiting for materials, instructions, etc.

4.Breakdown of machine

## Question: `The Economic order quantity can be calculated by`

1.Formula Method

2.Table Method

3.Graph Method

4.All of the given

## Question: `The inventory method where the cost per unit is recomputed after every addition in the inventory is known as.`

1.Specific identification method.

2.Moving average method.

3.Last-in- First - Out method.

4.First-in-First-Out method.

## Question: `The purposes served by preparation of payroll or wages sheet include:`

1.Spreading the volume of work to be done

2.Computation of labour rate for each department

3.Comparing actual wages with budgeted wages for control

4.All of the above

## Question: `The purposes served by preparation of payroll or wages sheet include:`

1.Spreading the volume of work to be done

2.Computation of labour rate for each department

3.Comparing actual wages with budgeted wages for control

4.All of the above

## Question: `The short run is a time period in which:`

1.All resources are fixed.

2.The level of output is fixed.

3.The size of the production plant is variable.

4.Some resources are fixed and others are variable

## Question: `The unavoidable causes of labour turnover include the following except:`

1.Personal betterment

2.Dissatisfaction with the job

3.Illness

4.Retirement

## Question: `Time study serves the following purposes except:`

1.Standardizing jobs, operation etc.

2.Assessing labour time

4.Fixation of wage rates and introduction of incentive schemes

## Question: `What is the company's break-even in units?`

1.48,000 units

2.72,000 units

3.80,000 units

4.None of the given options

## Question: `When prices are rising over time, which of the following inventory costing methods will result in the lowest gross margin/profits?`

1.FIFO

2.LIFO

3.Weighted Average

4.Cannot be determined

## Question: `Which of the following inventory valuation methods shows higher profits during the period of rising prices?`

1.FIFO method.

2.LIFO method.

3.Weighted average method.

4.Simple average method.

## Question: `Which of the following is / are time based incentive wage plan?`

4.All of the given options

## Question: `Which of the following is a mechanical device to record the exact time of the workers?`

1.Clock Card

2.Store Card

3.Token System

4.Attendance Register

## Question: `Which of the following is not a production cause of idle capacity?`

1.Set-up and change-over time

2.Lack of supervision and instruction

3.Lack of materials and tools

4.Strike

## Question: `Which of the following is NOT an assumption of the basic economic-order quantity model?`

1.Annual demand is known

2.Ordering cost is known

3.Carrying cost is known

4.Quantity discounts are available

## Question: `Which of the following is/are the basic object/s of job analysis?`

1.Determination of wage rates

2.Ascertain the relative worth of each job

3.Breaking up job into its basic elements

4.All of the given options

## Question: `Which of the following represents a CVP equation?`

1.Sales = Contribution margin (Rs.) + Fixed expenses + Profits

2.Sales = Contribution margin ratio + Fixed expenses + Profits

3.Sales = Variable expenses + Fixed expenses + profits

4.Sales = Variable expenses -Fixed expenses + profits

## Question: `While preparing the Cost of Goods Sold and Income Statement, the over applied FOH is;`

4.Subtracted, subtracted

## Question: `Work cost is the total of`

1.Direct cost

2.Indirect cost

3.Variable cost

4.Controllable cost

## Question: `______ method assumes that the goods received most recently in the stores or produced recently are the first ones to be delivered to the requisitioning department.`

1.FIFO

2.Weighted average method

3.Most recent price method

4.LIFO

## Question: `_______ represents that quantity of material which is normally ordered when a particular material reaches the ordering level.`

1.EOQ

2.BOQ

3.EBQ

4.Re-order period

## More MCQS

##### Olete Team
Online Exam TestTop Tutorials are Core Java,Hibernate ,Spring,Sturts.The content on Online Exam Testwebsite is done by expert team not only with the help of books but along with the strong professional knowledge in all context like coding,designing, marketing,etc!