Top 80+ Solved Strategic Cost Accounting MCQ Questions Answer
Q. Which is not a similarity between job order costing and process costing?
a. Methods of assigned costs
b. Tracking of direct materials, direct labor and manufacturing overhead
c. Accumulating journal entries
d. Flow of costs
Q. The journal entry that assigns raw materials costs in a process costing system includes
a. Debit to raw materials
b. Credit to raw materials
c. Debit to Accounts Payable
d. Credit to Work in Process
Q. Calculating equivalent units in a weighted average method:
a. The beginning inventory percentage complete is used only for conversion costs
b. The beginning inventory percentage complete is used for both material and conversion costs
c. The beginning inventory amount is not accounted for
d. The beginning inventory amount is used in total
Q. in a process costing system, manufacturing overhead is assigned to work in process by
a. Department based on actual overhead costs incurred
b. Department based on predetermined overhead rates
c. Job based on actual overhead costs incurred
d. Job based on predetermined overhead rates
Q. Which of the following system applies when standard goods are produced under a series ofinter connected operations?
a. Job order costing
b. Process costing
c. Standard costing
d. All of the above
Q. The process costing system is best suited for
a. Industries where different types of products are manufactured
b. Industries where homogenous products are manufactured on continuous basis
c. Service industry only
d. All of the above
Q. Which of the following business is likely to adopt a process costing system?
a. Plan manufactures
b. Construction companies
c. Sugar refining
d. Printing press
Q. Materials labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for
a. A job order costing system
b. An activity based costing system
c. A process costing system
d. A variable costing system
Q. In process costing system, the materials can be added in
a. First department only
b. Last department only
c. First and last department only
d. Any department
Q. Which of the following is not relevant to a process costing system?
a. Heterogeneous products
b. Recitative production
c. High production volume
d. Low production flexibility
Q. Which of the following is not correct about process costing and job order costing?
a. Both the system classify materials as direct material and or indirect materials.
b. Both the system classify labor ans direct labor and or indirect labor
c. Direct materials under job order costing might be indirect under process costing and vice versa.
d. Both the systems assigns costs by process.
Q. In process costing system, when partially completed units are expressed in terms of fullycompleted units they are known as
a. Completed units
b. Equivalent units
c. Unfinished units
d. Transferred units
Q. The direct material costing Rs. 4000 has been used in mixing department. The correct journalentry would be
a. Direct materials Dr. and work in process-mixing department CR
b. Work-in –process-mixing department Dr and Direct materials Cr
c. Finished goods DR and Direct materials Cr
d. Mixing department Dr and Direct material Cr
Q. In a process costing system, the manufacturing overhead (or factory OH) is usually appliedusing
a. Predetermined overhead rate
b. An actual overhead rate
c. A conversion overhead rate
d. An indirect labor rate
Q. In process costing system, the predetermined overhead rate is computed.
a. Only once and used for all the processing department
b. Separately for each processing department
c. Only for the first processing department where units are started
d. Only for the last department where units are completed and transferred to finished goods area.