Costing MCQs

Question 1

Operating costing is more suitable for ________ industries

Accepted Answer

Services

Answer

profit

Answer

Profit and service

Answer

government organisation

Question 2

Which of these is not an objective of Cost Accounting?

Accepted Answer

Assisting Shareholders in decision making

Answer

Ascertainment of Cost

Answer

Determination of Selling Price

Answer

Cost Control and Cost reduction

Question 3

A profit centre is a centre ____________.

Accepted Answer

Where the manager has the responsibility of generating and maximising profits

Answer

Which is concerned with earning an adequate Return on Investment

Answer

Both of the above

Answer

Which manages cost

Question 4

Responsibility Centre can be categorised into:

Accepted Answer

Cost Centres, Profit Centres and Investment Centres

Answer

Cost Centres only

Answer

Profit Centres only

Answer

Investment Centres only

Question 5

Cost Unit is defined as:

Accepted Answer

Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed

Answer

A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control

Answer

Centres having the responsibility of generating and maximising profits

Answer

Centres concerned with earning an adequate return on investment

Question 6

Fixed cost is a cost:

Accepted Answer

Which do not change in total during a given period despite changes in output

Answer

Which changes in total in proportion to changes in output

Answer

which is partly fixed and partly variable in relation to output

Answer

which remains same for each unit of output

Question 7

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking.

Accepted Answer

can not

Answer

can

Answer

may or may not

Answer

must

Question 8

Element/s of Cost of a product are:

Accepted Answer

Material, Labour and expenses

Answer

Material only

Answer

Labour only

Answer

Expenses only

Question 9

Abnormal cost is the cost:

Accepted Answer

Cost not normally incurred at a given level of output

Answer

Cost normally incurred at a given level of output

Answer

Cost which is charged to customer

Answer

Cost which is included in the cost of the product