Top 150+ Solved Cost Management MCQ Questions Answer
Q. ------------ is regarded as ‘Price-led costing’.
a. Activity based costing
b. Target costing
c. Kaizen costing
d. Back flush costing
Q. Upstream cost, Down stream cost etc., are the concepts in---------------.
a. Target costing
b. Kaizen costing
c. Life cycle costing
d. Activity based costing
Q. When output in relation to the input is expressed mathematically it is called as----------
a. Outcome index
b. Efficiency index
c. Productivity index
d. All the above.
Q. If Profit divided by the capital employed, it reveals--------------
a. Labour productivity
b. Machine productivity
c. Material productivity
d. None of these
Q. The type of spoilage that should not affect the cost of inventories is
a. Abnormal spoilage
b. Seasonal spoilage
c. Normal spoilage
d. Indirect spoilage
Q. Materials may not be put into process
a. At the beginning of an operation
b. Continuously
c. At the end of the operation
d. In the shipping department.
Q. Process cost method is especially suitable for
a. Custom production
b. FIFO
c. Standard costs
d. LIFO
Q. In process costing, costs follow
a. Price rise
b. Product flow
c. Price declines
d. Finished goods
Q. When average costing is used, the opening inventory costs are
a. Kept separate from the costs for the new period
b. Added to the costs of the new period
c. Subtracted from the new costs
d. Averaged with other costs to arrive at total cost.
Q. A disadvantage of FIFO costing is that
a. The first units produced cannot be distinguished from later production.
b. Several units’ costs are used at the same time.
c. The units have to be kept separate
d. The shipping costs are higher
Q. Which of the following method of costing can be used in a large oil refinery?
a. Process costing
b. Unit costing
c. Operating costing
d. Job costing
Q. Which of the following pair is odd one?
a. Construction-Contract costing
b. Ship-building-Job costing
c. Brick manufacturing – Process costing
d. Transport undertaking – Operating costing
Q. A product which has practically no sales or utility value is--------
a. Waste
b. Spoilage
c. Scrap
d. Defectives
Q. Trimmings in timber industry should be treated as a---------
a. Waste
b. Spoilage
c. Scrap
d. Defectives
Q. The type of process loss that should not affect the cost of inventory is
a. Abnormal loss
b. Seasonal loss
c. normal loss
d. standard loss