Top 150+ Solved Cost and Management Accounting (CMA) MCQ Questions Answer
Q. When actual loss is..........................than the estimated loss, the differencebetween the two is considered to be abnormal loss.
a. more
b. less
c. both a & b)
d. none of these
Q. When 1000 units are 60% complete in a process, it is equivalent to…………….completed units.
a. 60
b. 600
c. 6000
d. 1000
Q. Equivalent units represent the production of a process in terms of…..units.
a. completed
b. total production
c. semi-finished
d. both a& c
Q. .............……….process loss should be transferred to costing profit & lossaccount.
a. abnormal
b. normal
c. both a& b
d. none of these
Q. The cost of......................process loss is absorbed in the cost of production ofgood units.
a. abnormal
b. normal
c. both a & b
d. none of these
Q. In inter process profits, the output of one process is transferred fromone process to another not at …………….but at ……………….
a. market price, actual cost
b. actual cost, market price
c. both a& b
d. none of these
Q. Where actual loss in a process is less than the anticipated loss, thedifference between the two is considered to be ………………..
a. abnormal loss
b. normal loss
c. abnormal gain
d. normal gain
Q. In process costing, the abnormal loss is treated as .............. cost and writtenoff to profit & loss account.
a. unit
b. period
c. future
d. process
Q. The process costing is not used in one of the following.
a. chemical
b. textiles
c. cement
d. oil refining
Q. …..arises where the actual process loss is less than the normal predeterminedprocess loss.
a. normal loss
b. abnormal loss
c. abnormal gain
d. none of these
Q. Budgeting system…................ key managerial functions. School of Distance EducationCost Accounting Page 20
a. dismisses
b. integrates
c. discharges
d. none of these
Q. …….is a budget which is updated continuously by adding a further period (amonth/quarter) and deducting a corresponding earlierperiod.
a. rolling budget
b. continuous budget
c. annual budget
d. both a & b
Q. The budget relating to.................... must be prepared first and the other budgetsshould be prepared in the light of that factor.
a. limiting factor
b. materials
c. labour
d. production
Q. …………………budget is the most important budget and it forms thebasis on which all the other budgets are built up.
a. production
b. material
c. cash budget
d. sales