Accounting for Business Decisions | Chapter 3 | Part 1 | MBA MCQs | ABD
- Which of these is not an objective of Cost Accounting?
- Ascertainment of Cost
- Determination of Selling Price
- Cost Control and Cost reduction
- Assisting Shareholders in decision making
- Fixed cost is a cost:
- Which changes in total in proportion to changes in output
- Which is partly fixed and partly variable in relation to output
- Which do not change in total during a given period despise changes in output
- Which remains same for each unit of output
- Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.
- can not
- can
- may or may not
- must
- Element/s of Cost of a product are:
- Material only
- Labour only
- Expenses only
- Material, Labour and expenses
- Abnormal cost is the cost:
- Cost normally incurred at a given level of output
- Cost not normally incurred at a given level of output
- Cost which is charged to customer
- Cost which is included in the cost of the product
- Conversion cost includes cost of converting..........into........
- Raw material, WIP
- Raw material, Finished goods
- WIP, Finished goods
- Finished goods, Saleable goods
- Sunk costs are:
- relevant for decision making
- Not relevant for decision making
- cost to be incurred in future
- Future costs
- Calculate the prime cost from the following information:
Direct material purchased: Rs. 1,00,000
Direct material consumed: Rs. 90,000
DIMR
Direct labour: Rs. 60,000
Direct expenses: Rs. 20,000
Manufacturing overheads: Rs. 30,000- Rs. 1,80,000
- Rs. 2,00,000
- Rs. 1, 70,000
- Rs. 2,10,000
- Total cost of a product: Rs. 10,000
Profit: 25% on Selling Price Profit is:- Rs. 2,500
- Rs. 3,000
- Rs. 3,333
- Rs. 2,000
- Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000
Office & Administration Overheads: Rs. 1,00,000
Opening stock of WIP: Rs. 10,000
Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. 30,000
There was no opening stock of finished goods.
Selling overheads: Rs. 10,000- Rs. 2,70,000
- Rs. 3,00,000
- Rs. 2,80,000
- Rs. 3,20,000
- ______________ provides a specialized technique, which provides prompt and accurate information regarding the cost of producing and selling an article.
- Cost Accounting
- Financial Accounting
- Management Accounting
- Cost & Financial Accounting
- The amount of expenditure incurred on, or attributable to a given thing is called as ______________.
- Cost
- Price
- Expense
- Fixed Cost
- The techniques and process of ascertaining cost is called as ______________.
- Costing
- Accounting
- Financing
- Management Accounting
- With the help of ______________, we can control the cost.
- Costing Methods
- Cost Accounting
- Management Accounting
- Costing Techniques
- With the help of ______________, we can find out the cost.
- Costing Methods
- Cost Accounting
- Management Accounting
- Costing Techniques
- The total of Direct Material + Direct Labour + Direct Expenses is called as ______________.
- Total Cost
- Factory Cost
- Prime Cost
- Main Cost
- Direct Expenses are also called as ______________.
- Chargeable Expenses
- Factory Expenses
- Works Expenses
- General Expenses
- Depreciation is an example of ______________.
- Direct Expenses
- Factory Expenses
- General Expenses
- Indirect Expenses
- The aggregate of all indirect expenses is ______________.
- Total Cost
- Total Expense
- Overheads
- Factory Overheads
- Factory Cost is also called as ______________.
- Total Cost
- Cost of Production
- Works Cost
- Factory Overheads