Cost Accounting Multiple Choice Question MCQ
Categories: Bussiness Accountancy
Q.1 What’s the primary basis of the concept of cost? A) Financial audit B) Tax compliance C) Cost estimation D) Analysis of profit Answer: (C) Cost estimation Q.2 What kind of firm is costing the most A) Bricklaying companies B) Oil refining companies C) Hospitals D) Transport firms Answer: (B) Oil refining companies Q.3 How many ways is cost classification possible? A) There are many ways to use it. B) Two ways C) Three ways D) Four ways. Answer: (A) There are many ways to use it. Q.4 What cost will be payable even if the company is closed? A) Cost of shut-down B) Cost of the historical record C) Cost of sunk D) Imputed cost Answer: (A) Cost of shut-down Q.5 How do you define direct costs, also referred to as? A) Chargeable expenses B) Other expenses C) Overhead expenses D) Major expense Answer: (A) Chargeable expenses Q.6 Rent for warehouses is a component of what cost? A) Production cost B) Cost of factory C) Prime cost D) Distribution cost Answer: (D) Distribution cost Q.7 Which tender is it? A) Estimation of the cost B) Estimation of the price at which it will be sold. C) Estimation of units D) Estimation of profits Answer: (B) Estimation of the price at which it will be sold. Q.8 How do you calculate the sum of all direct costs referred to? (A) Prime cost B) Cost of sales C) Production costs D) Cost of the work Answer: (A) Prime cost Q.9 What items aren’t part of cost accounting? A) Cost of the product B) Controlling C) Planning D) Profit sharing Answer: (D) Profit sharing Q.10 What kind of costing do toy manufacturing companies make use of? (A) Multiple costing B) Batch costing C) Costing of the unit D) Costing for the process Answer: (B) Batch costing Q.11 Salary paid to permanent employees is an example of what cost? a) implicit cost B) variable cost C) fixed cost D) explicit cost Answer: (C) fixed cost Q12. AC is equivalent to MC, where (A) Both are equal B) Minimum MC C) AC is minimum D) None of the above Answer: (3) AC is minimum Q.13 Someone who uses his capital for the business is, e.g., of A) fixed cost B) explicit cost C) implicit cost D) variable cost Answer: (c) implicit cost Q.14 The form of Marginal cost A) M-shaped B) S-shaped C) U-shaped D) L-shaped Answer: (C) U-shaped Q.15 It is the MC curve is cut AC at its A) All of the listed B) Minimum point C)the highest point D) None of the above Answer: (B) Minimum point