Top 150+ Solved Applied Cost Accounting MCQ Questions Answer
Q. Marginal costing is the aggregate of …………plus variable overheads
a. Work cost
b. Variable cost
c. Prime Cost
d. Cost of production
Q. ………… is the aggregate of fixed cost and profit
a. Prime cost
b. Contribution
c. Work cost
d. Cost of sale
Q. In marginal costing stock of finished goods is valued at
a. Fixed cost
b. Market price
c. Cost price
d. Variable cost
Q. In marginal costing only…………is charged to products
a. Fixed cost
b. Variable cost
c. Semi variable cost
d. Semi fixed cost
Q. …………helps the management in cost control
a. Marginal costing
b. Operation costing
c. Unit costing
d. Absorption costing
Q. …………is the system most useful for making make or buy decision
a. Operation costing
b. Marginal costing
c. Unit costing
d. Service costing
Q. Marginal costing and …………analysis helps in decision making
a. Service costing
b. Unit costing
c. Differential costing
d. Absorption costing
Q. An increase in physical sales volume…………P/V ratio
a. Increase
b. Decreases
c. Either increase or decrease
d. Do not affect
Q. In marginal costing managerial decisions are guided by…………than by profit
a. Marginal cost
b. Variable cost
c. Incremental cost
d. Contribution margin
Q. There will be…………in marginal costing when there is production but no sales
a. Profit
b. Loss
c. Cost
d. Income
Q. Marginal costing is a technique of
a. Cost reduction
b. Cost control
c. Profit planning
d. Profit maximization
Q. In differential cost analysis decisions are taken by comparing the………… with differential cost
a. Marginal cost
b. Marginal revenue
c. Incremental revenue
d. Either (b) or (c)
Q. A………… is useful only when the actual level of activity corresponds to the budgeted level of activity
a. Flexible budget
b. Master budget
c. Fixed budget
d. Sales budget