Accounting for Business Decisions | Chapter 3 | Part 2 | MBA MCQs | ABD

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1. Cost of Sales is also called as ______________.
   1.   Total Cost
   2.   Cost of Production
   3.   Works Cost
   4.   Factory Cost
2. Telephone bill, Electricity bill is an example of ______________.
   1.   a) Total Cost
   2.   Fixed Overheads
   3.   Variable Overheads
   4.   Semi-variable Overheads
3. Fixed Cost is also called as ______________.
   1.   Total Cost
   2.   Direct Cost
   3.   Works Cost
   4.   Period Cost
4. Material and Labour is an example of ______________.
   1.   Fixed Cost
   2.   Controllable Cost
   3.   Non-controllable Cost
   4.   Period Cost
5. Repairs and Maintenance is an example of ______________.
   1.   Fixed Cost
   2.   Avoidable Cost
   3.   Non-controllable Cost
   4.   Normal Cost
6. Cost incurred because of lock outs is an example of ______________.
   1.   Fixed Cost
   2.   Unavoidable Cost
   3.   Abnormal Cost
   4.   Normal Cost
7. One-time set-up cost of a plant or project is called as ______________.
   1.   Fixed Cost
   2.   Direct Cost
   3.   Capital Cost
   4.   Normal Cost
8. Standard Cost is also called as ______________.
   1.   Predetermined Cost
   2.   Direct Cost
   3.   Capital Cost
   4.   Fixed Cost
9. Variable Cost is also called as ______________
   1.   Predetermined Cost
   2.   Direct Cost
   3.   Marginal Cost
   4.   Fixed Cost
10. Rent is an example of ______________.
    1.   Predetermined Cost
    2.   Direct Cost
    3.   Unavoidable Cost
    4.   Standard Cost
11. What comes in is to be debited, what goes out is to be credited
    1.   Rules of Personal
    2.   Rules of Real
    3.   Rules of Nominal
    4.   All of these
12. Which of the following account balance will be shown on debit side of Trial Balance?
    1.   Outstanding expenses
    2.   Cash a/c
    3.   Short term loan
    4.   creditors
13. The reduction in the value of the fixed assets which can arise due to time factor is
    1.   Discount
    2.   Depreciation
    3.   Reduction
    4.   None of the above
14. If closing stock appears in the trial balance, it should be
    1.   Credited to the trading account
    2.   Credited to the profit and loss account
    3.   Deducted from the purchases in the trading account
    4.   Shown on the liability side of the Balance sheet
15. Outstanding expenses are charged to
    1.   Asset side of balance sheet
    2.   Liability side of balance sheet
    3.   Not charged to balance sheet
    4.   None of these
16. liabilities in balance sheet include the following items
    1.   Long term loan
    2.   Short term loan
    3.   Owner’s fund
    4.   All of these
17. prepaid expense is treated as
    1.   Current asset
    2.   Current liability
    3.   Short term liability
    4.   None of these
18. Cost accounting aims at ascertain ………………. of product
    1.   Cost
    2.   Net profit
    3.   Gross profit
    4.   Selling price
19. The purpose of financial accounts is reporting to
    1.   Management only
    2.   Government only
    3.   Investor only
    4.   All of these
20. Accounting does not record non-financial transactions because of:
    1.   Accrual concept
    2.   Cost concept
    3.   Continuity concept
    4.   Money measurement concept