Q.1) Cost accounting concepts include all of the following except
A. Planning
B. Controlling
C. Sharing (correct answer)
D. Costing
Un-Answered 65% answered this correctly. 35% answered wrong
Q.2) the applied factory overhead cost is less than the actual cost is
called
A. unfavorable variance (correct answer)
B. favorable variance
Un-Answered 56% answered this correctly. 44% answered wrong
Q.3) Difference between the actual cost and applied cost is called
A. Variance (correct answer)
B. Normal cost
C. overhead absorption
D. Variable Cost
Explanation
Variance
Difference between the actual cost and applied cost is calculated by
subtracting actual cost from
the applied cost. Where the applied cost is greater than the actual
cost it is favorable variance,
but where the applied cost is lesser than the actual cost it is
unfavorable variance
Un-Answered 89% answered this correctly. 11% answered wrong
Q.4) Fixed Cost and Variable Cost
are Division of cost by its behavior
A. True (correct answer)
B. False
Explanation
Division of cost by its behavior
Basically the cost of production has two behaviors:
1. Fixed Cost
2. Variable Cost
Un-Answered 36% answered this correctly. 64% answered wrong
Q.5) Fixed cost per unit increases when
A. Variable cost per unit increase
B. Variable cost per unit decreases
C. Production volume increases
D. Production volume decreases (correct answer)
Un-Answered 76% answered this correctly. 24% answered wrong
Q.6) Prime cost is also known as Direct cost
A. True (correct answer)
B. False
Un-Answered 56% answered this correctly. 44% answered wrong
Q.7) Variable cost per unit
A. Varies when output varies
B. Remains constant (correct answer)
C. Increases when output increases
D. Decrease when output decreases
Un-Answered 65% answered this correctly. 35% answered wrong
Q.8) Variable cost, Fixed cost which changes with in an alternatives
and Opportunity cost are examples of
A. Irrelevant Cost
B. Product Cost
C. Relevant Cost (correct answer)
D. Period Cost
Un-Answered 74% answered this correctly. 26% answered wrong
Q.9) Total Manufacturing cost is also known as Factory cost.
A. True (correct answer)
B. False
Un-Answered 63% answered this correctly. 37% answered wrong
Q.10) The variable cost per unit is the same amount for each unit
produced
A. True (correct answer)
B. false
Explanation
Variable Costs
A variable cost is a cost which tends to very directly with the change
in activity level. The variable
cost per unit is the same amount for each unit produced whereas total
variable cost increases as
volume of output increases.
Graph
Un-Answered 83% answered this correctly. 17% answered wrong
Q.11) All are product cost Except
A. Direct material cost
B. Factory overhead cost
C. administrative expenses (correct answer)
D. Direct labor cost
Un-Answered 69% answered this correctly. 31% answered wrong
Q.12) The main purpose of cost accounting is to
A. to reduce uncertainty
B. Maximize profits
C. Provide information to management for decision making (correct
answer)
D. Aid in the fixation of selling price;
Un-Answered 52% answered this correctly. 48% answered wrong
Q.13) Which of the followings is the reason of increase in total
variable cost
A. Increase in fixed cost
B. Rise in interest on capital
C. Increase in direct material cost (correct answer)
D. Depreciation of machinery
Un-Answered 60% answered this correctly. 40% answered wrong
Q.14) Conversion cost = _________
A. Prime cost + Factory overhead
B. Indirect labor + Factory overhead
C. Direct labor + factory overhead (correct answer)
D. indirect cost + factory overhead
Un-Answered 60% answered this correctly. 40% answered wrong
Q.15) Under/Over applied FOH cost can be adjusted in
A. Entire Production
B. Cost of Goods Sold
C. Net profit
D. All of the above (correct answer)
Un-Answered 83% answered this correctly. 17% answered wrong
Q.16) Differential Cost or Incremental cost is difference of the costs
of two or more alternatives.
A. True (correct answer)
B. False
Explanation
Differential Cost or Incremental cost
It is the difference of the costs of two or more alternatives.
Example
Difference between costs of raw material of two categories or quality.
Incorrect 67% answered this correctly. 33% answered wrong
Q.17) Packaging department is example of __________
A. investment centre
B. Profit Centre
C. Cost centre (correct answer)
D. Revenue Centre (your answer)
Explanation
Cost Center
Cost centre is a location where costs are incurred and may or may not
be attributed to cost
units.
Examples
Workshop in a manufacturing concern
Auto service department
Electrical service department
Packaging department
Janitorial service department
Un-Answered 34% answered this correctly. 66% answered wrong
Q.18) Mark all correct statements.
A. applied cost is greater than the actual cost is called favorable
variance (missed)
B. applied cost is greater than the actual cost is called
unfavorable variance
C. Over applied FOH cost is one when applied FOH is more then actual
(missed)
D. Over applied FOH cost is one when applied FOH is less then actual
Un-Answered 56% answered this correctly. 44% answered wrong
Q.19) Prime Cost + Factory overhead = Factory cost
A. True (correct answer)
B. False
Un-Answered 69% answered this correctly. 31% answered wrong
Q.20) Semi Variable Cost also know as
A. variable cost
B. mixed cost (correct answer)
C. Step fixed cost
Explanation
Semi Variable Cost
It is also known as mixed cost. It is the cost which is part fixed and
par variable. It is in fact the
mixture of both behaviors.
Examples include: Utility bills – there is a fixed line rent plus
charges for units consumed.
Salesman’s salary – there is a fixed monthly salary plus commission
per units sold.
Un-Answered 45% answered this correctly. 55% answered wrong
Q.21) Which of the followings is an example of fixed cost
A. Direct material cost
B. Works manager’s salary
C. Depreciation of machinery (correct answer)
D. Chargeable expenses
Un-Answered 69% answered this correctly. 31% answered wrong
Q.22) _______ is a section of an organization that is responsible for
producing profit
A. Revenue Centre
B. Investment Centre
C. Profit Centre (correct answer)
A. Planning
B. Controlling
C. Sharing (correct answer)
D. Costing
Un-Answered 65% answered this correctly. 35% answered wrong
Q.2) the applied factory overhead cost is less than the actual cost is
called
A. unfavorable variance (correct answer)
B. favorable variance
Un-Answered 56% answered this correctly. 44% answered wrong
Q.3) Difference between the actual cost and applied cost is called
A. Variance (correct answer)
B. Normal cost
C. overhead absorption
D. Variable Cost
Explanation
Variance
Difference between the actual cost and applied cost is calculated by
subtracting actual cost from
the applied cost. Where the applied cost is greater than the actual
cost it is favorable variance,
but where the applied cost is lesser than the actual cost it is
unfavorable variance
Un-Answered 89% answered this correctly. 11% answered wrong
Q.4) Fixed Cost and Variable Cost
are Division of cost by its behavior
A. True (correct answer)
B. False
Explanation
Division of cost by its behavior
Basically the cost of production has two behaviors:
1. Fixed Cost
2. Variable Cost
Un-Answered 36% answered this correctly. 64% answered wrong
Q.5) Fixed cost per unit increases when
A. Variable cost per unit increase
B. Variable cost per unit decreases
C. Production volume increases
D. Production volume decreases (correct answer)
Un-Answered 76% answered this correctly. 24% answered wrong
Q.6) Prime cost is also known as Direct cost
A. True (correct answer)
B. False
Un-Answered 56% answered this correctly. 44% answered wrong
Q.7) Variable cost per unit
A. Varies when output varies
B. Remains constant (correct answer)
C. Increases when output increases
D. Decrease when output decreases
Un-Answered 65% answered this correctly. 35% answered wrong
Q.8) Variable cost, Fixed cost which changes with in an alternatives
and Opportunity cost are examples of
A. Irrelevant Cost
B. Product Cost
C. Relevant Cost (correct answer)
D. Period Cost
Un-Answered 74% answered this correctly. 26% answered wrong
Q.9) Total Manufacturing cost is also known as Factory cost.
A. True (correct answer)
B. False
Un-Answered 63% answered this correctly. 37% answered wrong
Q.10) The variable cost per unit is the same amount for each unit
produced
A. True (correct answer)
B. false
Explanation
Variable Costs
A variable cost is a cost which tends to very directly with the change
in activity level. The variable
cost per unit is the same amount for each unit produced whereas total
variable cost increases as
volume of output increases.
Graph
Un-Answered 83% answered this correctly. 17% answered wrong
Q.11) All are product cost Except
A. Direct material cost
B. Factory overhead cost
C. administrative expenses (correct answer)
D. Direct labor cost
Un-Answered 69% answered this correctly. 31% answered wrong
Q.12) The main purpose of cost accounting is to
A. to reduce uncertainty
B. Maximize profits
C. Provide information to management for decision making (correct
answer)
D. Aid in the fixation of selling price;
Un-Answered 52% answered this correctly. 48% answered wrong
Q.13) Which of the followings is the reason of increase in total
variable cost
A. Increase in fixed cost
B. Rise in interest on capital
C. Increase in direct material cost (correct answer)
D. Depreciation of machinery
Un-Answered 60% answered this correctly. 40% answered wrong
Q.14) Conversion cost = _________
A. Prime cost + Factory overhead
B. Indirect labor + Factory overhead
C. Direct labor + factory overhead (correct answer)
D. indirect cost + factory overhead
Un-Answered 60% answered this correctly. 40% answered wrong
Q.15) Under/Over applied FOH cost can be adjusted in
A. Entire Production
B. Cost of Goods Sold
C. Net profit
D. All of the above (correct answer)
Un-Answered 83% answered this correctly. 17% answered wrong
Q.16) Differential Cost or Incremental cost is difference of the costs
of two or more alternatives.
A. True (correct answer)
B. False
Explanation
Differential Cost or Incremental cost
It is the difference of the costs of two or more alternatives.
Example
Difference between costs of raw material of two categories or quality.
Incorrect 67% answered this correctly. 33% answered wrong
Q.17) Packaging department is example of __________
A. investment centre
B. Profit Centre
C. Cost centre (correct answer)
D. Revenue Centre (your answer)
Explanation
Cost Center
Cost centre is a location where costs are incurred and may or may not
be attributed to cost
units.
Examples
Workshop in a manufacturing concern
Auto service department
Electrical service department
Packaging department
Janitorial service department
Un-Answered 34% answered this correctly. 66% answered wrong
Q.18) Mark all correct statements.
A. applied cost is greater than the actual cost is called favorable
variance (missed)
B. applied cost is greater than the actual cost is called
unfavorable variance
C. Over applied FOH cost is one when applied FOH is more then actual
(missed)
D. Over applied FOH cost is one when applied FOH is less then actual
Un-Answered 56% answered this correctly. 44% answered wrong
Q.19) Prime Cost + Factory overhead = Factory cost
A. True (correct answer)
B. False
Un-Answered 69% answered this correctly. 31% answered wrong
Q.20) Semi Variable Cost also know as
A. variable cost
B. mixed cost (correct answer)
C. Step fixed cost
Explanation
Semi Variable Cost
It is also known as mixed cost. It is the cost which is part fixed and
par variable. It is in fact the
mixture of both behaviors.
Examples include: Utility bills – there is a fixed line rent plus
charges for units consumed.
Salesman’s salary – there is a fixed monthly salary plus commission
per units sold.
Un-Answered 45% answered this correctly. 55% answered wrong
Q.21) Which of the followings is an example of fixed cost
A. Direct material cost
B. Works manager’s salary
C. Depreciation of machinery (correct answer)
D. Chargeable expenses
Un-Answered 69% answered this correctly. 31% answered wrong
Q.22) _______ is a section of an organization that is responsible for
producing profit
A. Revenue Centre
B. Investment Centre
C. Profit Centre (correct answer)
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