mcq solve

1. The primary objective of cost accounting is A. Ascertain the cost of goods and services B. Ascertain the profit C. Presentation of all data D. All of these. E. None of the above, 2. Cost of asset should always be equal to the cost of the liabilities. This concept is A. Double Entry Bookkeeping B. Matching Concept C. Consistency D. Money measurement Concept E. None of the given options 3. Marginal costing is concerned with: A. Fixed cost B. Variable cost C. Semi variable cost D. All of the above. E. None of the above, 4. Management Accounting relates to A. Recording of accounting data B. Recording of cost data C. Presentation of account data D. All of the above E. None of the above, 5. Management accounting is applicable to A. Service entities B. Manufacturing entities C. Non profit entities D. All of these.E. None of the given options. 6. Cost accounting information can be used for: A. Budget control and evaluation. B. Determining standard costs and variances. C. Pricing and inventory valuation decisions. D. All of these E. None of the given options 7.Aggregate of all direct costs is known as: A. Direct material costs B. Direct Wages C. Direct Expenses D. Prime Cost E. None of the given options 8.Sunk costs are: A. relevant for decision making B. Not relevant for decision making C. cost to be incurred in future D.future costs E. None of the given options 9. The primary objective of management accounting is A. Prepare final a/c B. Provide management complete and true information C. Cost determination D. All of these. E. None of the above, 10. Cost of goods sold= opening stock+ net purchases+ expenses on Purchases - sales Which part of formula is wrong?A. opening stock B. net purchases C. expenses on Purchases D. sales. E. None of the given options 11. Sales are equal to: A. Cost of goods sold + gross profit B. Cost of goods sold - gross profit C. Gross profit- Cost of goods sold D.Net income E. None of the above, 12. The work of factory employees that can be physically associated with converting raw material into finished goods is classified as- A. Manufacturing overhead B. Indirect materials C. Indirect labour D. Direct labour E. None of the given options 13. Variable cost per unit A. Remains fixed B. Fluctuates with volume of production C. Varies in consideration with the volume of sales D. All of the above E. None of the above, 14. Which of the following functions is managerial accounting intended to facilitate? A. Planning B. Decision making C. Control D. All of these E. None of the given options 15. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a: A. Variable cost B. Committed fixed cost C. Direct cost D. Semi variable cost E. None of the given options 16.In manufacturing a product, prime costs are: A.Raw materials and manufacturing overhead B. Indirect materials and manufacturing overhead C. Indirect labour and manufacturing overhead D. Direct materials and direct labour E. None of the given options 17. Because of automation, which component of product cost is declining? A. Direct labour B. Direct materials C. Manufacturing overhead D. Advertising E. None of the given options 18. Salary paid to factory manager is an item of: A. Prime Cost B. Factory Overhead C. Selling overhead D. Office overhead E. None of the given options 19.Calculate the prime cost from the following information: Direct material purchased: $1,00,000; Direct material consumed: $ 90,000; Direct labour: $60,000; Direct expenses: $20,000; Manufacturing overheads: $30,000.A. $1,80,000 B.$2,00,000 C. $1,70,000 D. $2,10,000 E. None of the given options 20. Aggregate of cost of goods sold and selling and distribution overheads is known as: A. Total Cost B. Office Cost C. Cost of sales D. Selling overhead E. None of the above, 21.A manufacturing process requires small amounts of glue. The glue used in the process is classified as A. A prime cost B. An indirect material C. A direct material D. Miscellaneous expense E. None of the given options 22. Lubricants, used regularly in a production process, are classified as A. Miscellaneous expense B. Direct materials C. Indirect materials D. Immaterial items. E. None of the given options 23. Manufacturing costs are also known as product costs. Which of the following best describes those costs which are considered to be manufacturing costs? A. Direct materials direct labor, and factory overhead. B. Direct materials and direct labor only. 29. Break even analysis is also called A. Contribution Margin B. Unit sales C. Cost-Volume- Profit analysis D. Fixed cost E. None of the above, 30. Carrying cost always calculate on A. Inventory cost B. Ordering cost C. Purchase cost D. EOQ E. None of the above, 31.Fixed cost per unit decreases when A. Production volume increases. B. Production volume decreases. C. Variable cost per unit decreases. D. Variable cost per unit increases. E. None of the given options 32. Cost of production report is a A. Financial statement B. Production Process report C. Order Sheet D. Cost Sheet E. None of the above, 33. The difference between total revenues and total variable costs is known as A. Contribution margin B. Gross margin C. Operating income D. Fixed costs E. None of the given options 34. The cost expended in the past that cannot be retrieved on product or service A. Relevant Cost B. Sunk Cost C. Product Cost D. Irrelevant Cost E. None of the given options 35. Cost of abnormal wastage is: A. Charged to the product cost B. Charged to the profit & loss account C. charged partly to the product and partly profit & loss account D. not charged at all. E. None of the given options 36. In each job is a cost unit to which all costs are assigned. A. Batch costing B. Job costing C. process costing D. operation costing. E. None of the given options. 37. Cost unit is defined as: A. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed B. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. C. Centres having the responsibility of generating and maximising profits D. Centres concerned with earning an adequate return on investment E. None of the above. 38. Fixed cost is a cost: A. Which changes in total in proportion to changes in output B. which is partly fixed and partly variable in relation to output C. Which do not change in total during a given period despise changes in output D. which remains same for each unit of output E. None of the above.! 39.The following is the Corporation's Income Statement for last month:Sales $4,000,000 Less: variable expenses $2,800,000 Contribution margin $1,200,000 Liss: fixed expenses $720,000 Net income $480,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. What is the company's contribution margin ratio? A. 30% B. 70% C. 150% D. None of given options. 40. Direct materials cost is $80,000. Direct labor cost is $60,000. Factory overhead is $90,000. Beginning goods in process were $15,000. The cost of goods manufactured is $245,000. What is the cost assigned to the ending goods in process? A. $45,000 B. 15,000 C. $30,000 D. There will be no ending Inventory