Top 150+ Solved Cost Management MCQ Questions Answer
Q. ----------- is maximum permissible cost in a competitive business environment.
a. Activity cost
b. Target cost
c. Kaizen cost
d. None of these
Q. Promoters of Activity based Costing was /were----------
a. Kaplan and Cooper
b. Galloway
c. Goldratt
d. Ouchy
Q. In innovative cost management terminologies ‘BPR’ stands for?
a. Business Process Reconstruction
b. Business Production Reschedule
c. Business Process Re-engineering
d. None of these
Q. A cost centre is:
a. The part of the business where all costs are paid to suppliers
b. A production department where all production costs are aggregated
c. An area for which costs are accumulated
d. An area of the business accountable for both costs and revenues
Q. An investment centre is a responsibility centre where the manager has control of:
a. Costs
b. Costs, profits and product quality
c. Costs, profits and assets
d. Costs and profits
Q. Responsibility accounting aims to:
a. Ensure that costs become the responsibility of a specific manager
b. Ensure that a manager is punished if things go wrong
c. Reduce the costs that a department incurs
d. Allocate costs to all areas of a business
Q. Prime cost can be defined as:
a. The total costs of manufacturing a product
b. The total direct costs of manufacturing a product
c. The total costs of operating the production department where the product is made
d. The cost of the first stage of the manufacture of a product
Q. Which of the following best describes a fixed cost?
a. Has a direct relationship with output
b. Increases proportionately with output
c. Represents a fixed proportion of total costs
d. Remains constant irrespective of the level of activity
Q. Direct labour costs will include:
a. Direct labour costs plus any bonuses and overtime premiums
b. Direct labour costs plus any bonuses
c. Total direct labour hours at the normal hourly rate of pay
d. All labour costs attributable to a product
Q. The company which applied first ‘Just in Time’ in its manufacturing is---------
a. GE Electricals
b. Motorola
c. Toyota
d. Suzuki
Q. ----------- is developed on the concept ‘inventory is evil’.
a. Quality circle
b. JIT
c. Kaizen
d. All of these
Q. “Kanban’ system is similar to ---------- philosophy
a. Kaizen
b. Cost driver
c. Just in Time
d. None of these
Q. Which of the following is / are the method of establishing ‘target cost’?
a. Addition method
b. Subtraction method
c. Integration method
d. All of these
Q. Accumulated cost of an activity called------------ in Activity based costing.
a. Cost driver
b. Cost object
c. Cost centre
d. Cost Pool