Top 150+ Solved Cost Management MCQ Questions Answer
Q. The method of costing used in case of a gas company is termed as---------
a. Job costing
b. Process costing
c. Operating costing
d. Contract costing
Q. Mines `A’ and `B’ are at a distance of 10 kms and 15 kms from the factory. The cost per tonne-km incase of mine A is Rs. 3 while it is R. 2.5 in case of mine B. The factory should procure coal from------------
a. Mine A only
b. Mine B only
c. Both from mines A and B in the ration of 3: 2
d. Can’t decide.
Q. In case of steam company, the cost per unit is calculated on the basis of---------
a. Total quantity of lbs. produced
b. Total quantity of kwh generated
c. Total quantity of tones produced
d. Any of the above.
Q. Calendar variance is the sub variance of ---------------
a. Labour variances
b. Sales variances
c. Fixed Overhead variances
d. Variable Overhead variances
Q. Which of the following is /are support activity in Value Chain Analysis?
a. Procurement
b. Firms’ infrastructure
c. HRM
d. All of these.
Q. Which of the following is /are primary activity in Value Chain Analysis?
a. Procurement
b. Firms’ infrastructure
c. HRM
d. Service
Q. ----------- variance is always adverse.
a. Material yield variance
b. Labour rate variance
c. Idle time variance
d. None of these
Q. ----------- are those products which are manufactured in different varieties by the same industry.
a. Joint products
b. By products
c. Co-products
d. All of these
Q. Lean manufacturing can be achieved by using-----------
a. Activity based costing
b. Target costing
c. Just in Time
d. Life cycle costing
Q. ----------is the cost attribution to the cost unit on the basis of benefits received from indirect activities.
a. Activity based costing
b. Target costing
c. Backflush costing
d. Life cycle costing
Q. Traditional absorption costing is ----------
a. Activity based
b. Volume based
c. Transaction based
d. All the above
Q. In Activity based costing, importance given to-----------
a. Direct Cost
b. Relevant cost
c. Overhead
d. Opportunity cost
Q. ------------ is the item of product. Job, process or customer for which cost are to be determined.
a. Cost Driver
b. Cost object
c. Cost pool
d. Cost concept
Q. ‘Cost of Procurement’ is an example of---------------
a. Cost Driver
b. Cost object
c. Cost pool
d. Cost Centre