Cost Accounting MCQs with answers Page - 7

You will find multiple-choice questions (MCQs) related to #Cost Accounting here. Go through these questions to prepare effectively for your upcoming exams and interviews.

To view the correct answer for any question, simply click the "Show Answer" button.

Have a question to share? Click on "Add Question" to contribute!

A

Admin • 802.91K Points
Coach

Q. Which of the following is included in indirect material cost?

  • (A) Raw materials used in production
  • (B) Lubricants used for machines
  • (C) Wages paid to laborers
  • (D) Packing material for dispatch

A

Admin • 802.91K Points
Coach

Q. What is the main objective of marginal costing?

  • (A) To calculate profit
  • (B) To control cost
  • (C) To determine break-even point
  • (D) To calculate inventory

A

Admin • 802.91K Points
Coach

Q. What is the classification of rent of office building in cost accounting?

  • (A) Selling overhead
  • (B) Administrative overhead
  • (C) Factory overhead
  • (D) Direct expense

A

Admin • 802.91K Points
Coach

Q. Scrap value is considered in calculation of:

  • (A) Profit margin
  • (B) Selling price
  • (C) Depreciation
  • (D) Prime cost

A

Admin • 802.91K Points
Coach

Q. In cost accounting, a 'batch' refers to:

  • (A) Each individual item produced
  • (B) A large contract
  • (C) A group of identical items
  • (D) Process division

A

Admin • 802.91K Points
Coach

Q. A flexible budget is useful when:

  • (A) Costs are fixed
  • (B) There is no variation in activity level
  • (C) Activity level changes frequently
  • (D) Sales are declining

A

Admin • 802.91K Points
Coach

Q. Which of the following costs is NOT considered for decision making?

  • (A) Relevant cost
  • (B) Sunk cost
  • (C) Opportunity cost
  • (D) Differential cost

A

Admin • 802.91K Points
Coach

Q. What is a 'cost unit'?

  • (A) A division of a company
  • (B) A product or service for which cost is measured
  • (C) A standard budget
  • (D) A fixed expense

A

Admin • 802.91K Points
Coach

Q. Which of the following best describes 'absorption costing'?

  • (A) Only variable costs are considered
  • (B) Only direct costs are considered
  • (C) All costs are absorbed by units produced
  • (D) Only fixed costs are absorbed

A

Admin • 802.91K Points
Coach

Q. What is the cost of idle time due to machine breakdown?

  • (A) Direct cost
  • (B) Controllable cost
  • (C) Indirect cost
  • (D) Opportunity cost

Browse More Tags

Click on tag to learn MCQs of that tag.
What's Tag

As you may know, questions are organized under broad categories. Each category can include various types of questions. For example, the "History" category might contain questions about the Revolt of 1857, Shivaji Maharaj, Ancient History, Buddhism, and more.

To further refine this organization, we've introduced tags, which act as sub-categories to group questions more specifically.

Verified users can add tags to any question. If you have any suggestions regarding this system, we'd love to hear from you. Contact Us

Learn More