Top 80+ Solved Strategic Cost Accounting MCQ Questions Answer
Q. Where the normal loss in a department is identified at the end of process, its cost is :-
a. Ignored
b. Charged to work in progress ending inventory only
c. Charged to units completed and transferred out only
d. Charged to work in process ending inventory as well as to units completed and transferred out
Q. While preparing the cost of production report of a processing department, use per unit costfrom producing department needs to be adjusted when the
a. Normal loss is identified during the process.
b. Normal loss is identified at the end of the process
c. Abnormal loss is identified during the process
d. Abnormal loss is identified at the end of the process.
Q. The normal or standard loss in processing department is generally considered
a. An avoidable loss
b. Un avoidable loss
c. An additional loss
d. A basic loss
Q. A loss in processing departments which can be avoided under normal and efficient working conditions is generally known as
a. Normal loss
b. Extra loss
c. Abnormal loss
d. Department loss
Q. In process costing the abnormal loss occurred in a production department is
a. Charged to finished goods
b. Charged to unfinished goods
c. Charged to factory overhead
d. Ignored
Q. Which of the following characteristics is relevant to process costing but not to job order costing?
a. Averaging process
b. Identifiable batches of production
c. Equivalent units
d. Use of standard cost
Q. Which of the following types of spoilage should not affect the recorded cost of inventories
a. Normal spoilage
b. Standard spoilage
c. Abnormal spoilage
d. Seasonal spoilage
Q. A section of the cost of production report which shows the physical flow of units through various producing departments is usually labeled as
a. Schedule of physical flow
b. Quantity schedule
c. Equivalent units of production
d. Cost to be accounted for
Q. What does FIFO mean?
a. Finished stock In Finished stock out
b. Fabrications Inward Fabrications Outward
c. Final Input Final Output
d. First In First Out
Q. Regardless of how long it takes to produce and sell inventory, inventory is alwaysconsidered to be a?
a. Current asset
b. Current liability
c. Long-term asset
d. Stockholder's equity
Q. The latest cost of inventories is changed to production but the old prices are changed to inventories on hand?
a. Average
b. LIFO
c. FIFO
d. Perpetual
Q. An increase in inventories indicates that?
a. More merchandise was purchased then the amount sold to customer
b. Less merchandise was purchased then sold to the customer
c. Not all purchases were cash
d. Cash payments were more than purchases on account
Q. Which type of inventory system is updated inventory system?
a. Periodic inventory system
b. Contingency inventory system
c. LIFO
d. Perpetual inventory system
Q. What is the principal criterion used to distinguish between tangible assets andinventories?
a. The physical substance of the asset
b. The acquisition cost of the asset
c. The nature of the company’s activity, which determines the purpose for which the asset is held
d. The moment in the accounting period when the asset is acquired
Q. Which of the following method is suitable for calculating the cost of inventorywhen actual costs of individual units of merchandise can be determined from the accounting records?
a. FIFO Method
b. LIFO Method
c. Specific Identification Method
d. Average Method