Top 150+ Solved Cost and Works Accounting 2 MCQ Questions Answer
Q. An example of a production overhead would be:
a. Material.
b. Rent
c. Labour cost.
d. Supervisory cost
Q. All such expenses which are incurred for creating and enhancing the demands for theproducts are
a. Selling expenses
b. Administrative expenses
c. Distribution expenses
d. All of the above
Q. To control costs it is essential to keep control on
a. Prime cost
b. Overheads
c. Indirect materials and tools cost.
d. All of the above
Q. A cost that is easily traceable to a cost object is known as:
a. Direct cost
b. Indirect cost
c. Variable cost
d. Fixed cost
Q. Which of the following best describes a fixed cost? A cost which:
a. Represents a fixed proportion of total costs
b. Remains at the same level up to a particular level of output
c. Has a direct relationship with output.
d. Remains at the same level when output increases.
Q. Which of the following is a valid classification of the salary paid to the foreman incharge of the packing department?
a. Indirect departmental cost
b. Direct product cost
c. Direct departmental cost
d. Service department cost.
Q. A cost that changes in total dollar amount with the change in the level of activity isknown as:
a. Direct cost
b. Indirect cost
c. Variable cost
d. Fixed cost
Q. Which of the following costs is treated as indirect labour?
a. Idle time
b. Overtime premium
c. Fringe benefits
d. All of the above
Q. Economic Batch Quantity depends on ……………….and ……………..costs.
a. Material, labour
b. set-up costs, carrying
c. transportation, carrying
d. warehousing, labour
Q. The wages paid to maintenance department workers who do repair work principally for production departments but also on the vehicles in the distribution department should be charged as
a. Service cost
b. Distribution cost
c. General cost
d. Production cost
Q. Which of the following costs of management is likely to have least control?
a. Machine breakdown cost
b. Wages cost
c. Advertising cost.
d. Buildings insurance cost
Q. Which of the following best describes a fixed cost? A cost which:
a. Represents a fixed proportion of total costs.
b. Remains at the same level up to a particular level of output.
c. Remains at the same level when output increases
d. Has a direct relationship with output
Q. Which of the following would not be considered as a component of 'cost'of stock?
a. Transportation inward cot
b. Import duties
c. Purchase price
d. Salaries of selling staff
Q. . Cost apportionment involves:
a. The sharing out of overheads to service departments
b. The sharing out of common costs to departments
c. The allocation of direct costs to departments
d. The sharing out of costs to products
Q. . What would be the most appropriate way of apportioning depreciation costs acrossdifferent manufacturing departments in a business?
a. Floor space
b. Numbers of personnel
c. Value of buildings and equipment
d. Value of lan