Accounting for Business Decisions | Chapter 1 | Part 3 | MBA MCQs | ABD

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1. The main object of cost accounting is:
   1.   To record day to day transactions of the business
   2.   To reveal managerial efficiency
   3.   To ascertain true cost of products and services
   4.   To determine tender price
2. Cost accounting emerged mainly on account of:
   1.   Statutory requirements
   2.   Competition in the market
   3.   Labour unrest
   4.   Limitations of financial accounting
3. Advantages of cost accounting accrue :
   1.   Only to workers
   2.   Only to government
   3.   Only to consumers
   4.   To management, workers, consumers and government
4. Cost accounting is applied to :
   1.   Public undertakings only
   2.   Large business enterprise only
   3.   Small business concerns only
   4.   Manufacturing and service concern
5. Marginal costing is concerned with:
   1.   Fixed cost
   2.   Variable cost
   3.   Semi variable cost
   4.   None of the above
6. ………………..is a person or item for which cost may be ascertained.
   1.   Cost unit
   2.   Cost centre
   3.   Cost object
   4.   Cost estimation
7. Salary paid to factory manager is an item of:
   1.   Prime cost
   2.   Factory overhead
   3.   Selling overhead
   4.   Office overhead
8. ………………cost refers to those cost which have already been incurred and cannot be altered by any decision in the future.
   1.   Opportunity cost
   2.   Sunk Cost
   3.   Incremental cost
   4.   Decremental cost
9. Amortization of intangible Asset Such as Goodwill which has indefinite life is an example of accounting concept
   1.   Conservatism Concept
   2.   Continuity Concept
   3.   Realisation Concept
   4.   Measurement Concept
10. If loan have been guaranteed by managers and directors is called as
    1.   Loan
    2.   Unsecured Loan
    3.   Secured Loan
    4.   Advance by Manager & director
11. Debit the receiver, credit the giver is the rule of ______________.
    1.   Personal Account
    2.   Real Account
    3.   Nominal Account
    4.   Individual Account
12. Debit what comes in, credit what goes out is the rule of ______________.
    1.   Personal Account
    2.   Real Account
    3.   Nominal Account
    4.   Individual Account
13. Debit all expenses and losses, credit all incomes and gains is the rule of ______________.
    1.   Personal Account
    2.   Real Account
    3.   Nominal Account
    4.   Individual Account
14. ______________ is a record of transaction in the books of Accounts.
    1.   Entry
    2.   Recording
    3.   Monetary Transaction
    4.   Ledger
15. ______________ is an exchange of money or money’s worth.
    1.   Entry
    2.   Recording
    3.   Monetary Transaction
    4.   Ledger
16. ______________ is a book of original entry.
    1.   Journal
    2.   Ledger
    3.   Cash Book
    4.   Subsidiary Book
17. ______________ is a bound book of different accounts.
    1.   Journal
    2.   Ledger
    3.   Cash Book
    4.   Subsidiary Book
18. ______________ is a summarized record of transactions related to one person, one asset, one head of expense/loss and one head of income/gain.
    1.   Journal
    2.   Ledger
    3.   Cash Book
    4.   Account
19. ______________ means totaling of sums in the books of accounts.
    1.   Casting
    2.   Summarizing
    3.   Journalizing
    4.   Ledger Posting
20. ______________ are obligations or debts that the enterprise must pay in money or services at some time in the future.
    1.   Assets
    2.   Liabilities
    3.   Responsibilities
    4.   Salaries