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    (C) Present Value of Future Benefits: Multiple Choice Questions (MCQS)

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    Z the officer
    This document contains multiple choice and short answer questions about cost accounting concepts. Some key points covered include: - The basic objective of cost accounting is cost ascertainment. Cost can be classified in multiple ways including by elements, types, behavior, etc. - Direct expenses are also called chargeable expenses. Cost accounting differs from financial accounting in how it records, reports, and controls costs. - Cost centers are created for control and fixing responsibility. Variable costs change proportionally with changes in output. - Target price is calculated as cost price plus gross margin. Process costing applies when standardized goods are produced through interconnected operations. - Absorption costing relates overhead costs to products. Job

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    (C) Present Value of Future Benefits: Multiple Choice Questions (MCQS)

    Uploaded by

    Z the officer
    112 views8 pages
    This document contains multiple choice and short answer questions about cost accounting concepts. Some key points covered include: - The basic objective of cost accounting is cost ascertainment. Cost can be classified in multiple ways including by elements, types, behavior, etc. - Direct expenses are also called chargeable expenses. Cost accounting differs from financial accounting in how it records, reports, and controls costs. - Cost centers are created for control and fixing responsibility. Variable costs change proportionally with changes in output. - Target price is calculated as cost price plus gross margin. Process costing applies when standardized goods are produced through interconnected operations. - Absorption costing relates overhead costs to products. Job

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    GROUP 3 ASSIGNMENT

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    This document contains multiple choice and short answer questions about cost accounting concepts. Some key points covered include: - The basic objective of cost accounting is cost ascertainment. Cost can be classified in multiple ways including by elements, types, behavior, etc. - Direct expenses are also called chargeable expenses. Cost accounting differs from financial accounting in how it records, reports, and controls costs. - Cost centers are created for control and fixing responsibility. Variable costs change proportionally with changes in output. - Target price is calculated as cost price plus gross margin. Process costing applies when standardized goods are produced through interconnected operations. - Absorption costing relates overhead costs to products. Job

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    112 views8 pages

    (C) Present Value of Future Benefits: Multiple Choice Questions (MCQS)

    Uploaded by

    Z the officer
    This document contains multiple choice and short answer questions about cost accounting concepts. Some key points covered include: - The basic objective of cost accounting is cost ascertainment. Cost can be classified in multiple ways including by elements, types, behavior, etc. - Direct expenses are also called chargeable expenses. Cost accounting differs from financial accounting in how it records, reports, and controls costs. - Cost centers are created for control and fixing responsibility. Variable costs change proportionally with changes in output. - Target price is calculated as cost price plus gross margin. Process costing applies when standardized goods are produced through interconnected operations. - Absorption costing relates overhead costs to products. Job

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 8

    MULTIPLE CHOICE QUESTIONS (MCQS)

    The term “Cost” is the measurement in ____ terms.


    A. Monetary
    B. Non-monetary
    C. Both
    D. None of above
    The term ‘cost’ refers to
    (A)An asset that has given benefit and is now expired
    (B)The value of the sacrifice made to acquire goods or services
    (C)Present value of future benefits
    (D)The price of products sold or services rendered

    Basic objective of cost accounting is ________


    A. tax compliance.
    B. Financial audit.
    C. Cost ascertainment.
    D. profit analysis.
    Cost unit is the unit of________in terms which are ascertained or expressed.
    (A) Product
    (B) Service
    (C) Time
    (D) All of above
    Cost can be classified in ____ ways.
    (A)two ways
    (B)three ways
    (C)four ways
    (D)several
    Direct expenses are also called ______
    (A)major expenses
    (B)chargeable expenses
    (C)overhead expenses
    (D)sundry expenses
    Cost accounting differs from financial accounting in respect of
    (A)Ascertain cost
    (B)Recording of cost
    (C)Reporting of cost
    (D)Control of cost
    Cost centres are created for
    (A)Segregating costs into fixed and variable
    (B)Control and fixing responsibility
    (C)Making decisions
    (D)Ascertaining profit
    Variable cost change ___ with change in output.
    (A)Proportionality
    (B)Industry
    (C)Inversely
    (D)Indirect
    Which of the following statements regarding techniques of inventory control are correct?
    (A)Fixation of selling price with good profit  
    (B)Establishment of inventory budgets
    (C)Establishment of inventory sales
    (D)Fixation of profit with high return
    Target price = ______ - gross margin
    (A)Selling price
    (B)Fixed cost
    (C)Cost price
    (D)Variable cost
    During costing process, to arrive at the gross profit of a trading business, which one of the
    following formula is applied?

    (A) Sales - (Opening Stock - Purchases - Closing Stock)

    (B) Sales - (Opening Stock + Purchases + Closing Stock)

    (C) Sales - (Opening Stock + Purchases - Closing Stock)


    (D) Sales - (Opening Stock - Purchases + Closing Stock)
    By elements/types cost are classified as:
    a) Material
    b) Labor
    c) Overhead
    d) All of the above
    Which cost is incurred even if the company is closed?
    a) Sunk cost
    b) Historical cost
    c) Shutdown cost
    d) Imputed cost
    Direct expenses are also known as
    a) Overhead expenses
    b) Sundry expenses
    c) Chargeable expenses
    d) Major expenses

    A total of all the direct costs is known as

    a. Cost of production

    b. Cost of sales

    c. Prime cost
    d. Works cost
    By nature, cost are classified as:

    a) Direct cost
    b) Indirect cost
    c) Both A&B
    d) None
    The cost having the materials bought to the organization is known as

    a) Carriage inward
    b) Carriage outward
    c) Purchases
    d) None
    Which of the following System applies when standardized goods are produced under a series of
    inter-connected operations?

    a) Job Order Costing


    b) Process Costing
    c) Standard Costing
    d) All of the given options

    The statement prepared under process costing is called?

    a) Cost of goods sold statement


    b) Income statement
    c) Cost of production report
    d) Variance statement

    A Company had no beginning work in process. During the period, 5,000 units were completed,
    and there were 500 units of ending work in process. How many units were started in
    production?

    a) 5,500
    b) 5,000
    c) 4,500
    d) 500

    Which of the following costs is recorded on the job cost sheet?

    a) Direct materials cost


    b) Direct labor cost
    c) Manufacturing overhead cost
    d) All of the above

    Which of the following would be classified as direct material for a furniture manufacturer?

    a) Wood
    b) Glue
    c) Screws
    d) Wood cleaner

    Absorption costing is closely related to which of the following cost elements?

    a) Total costs
    b) Overheads
    c) Prime costs
    d) Direct labor

    When too much overhead cost is charged to products as they are made, the result is?

    a) Over applied overhead


    b) Under applied overhead
    c) Understatement of Cost of Goods Sold
    d) Inventory cost is too low

    The cost objective is the?

    a) Reason for allocating the cost


    b) Calculation based on budgeted amounts
    c) Product, service, or department that is to receive the allocation
    d) Maximum amount to be allocated to any single department

    Which of the following journal entries is correct for the issuance of direct materials to
    production?

    a) Materials & Work in process


    b) Work in process & Materials
    c) Work in process & Accounts payable
    d) Materials & Accounts payable

    Under job order costing system, which of the following costs would be recorded as debit to
    manufacturing overhead account?

    a) Direct Materials cost


    b) Indirect Materials cost
    c) Direct labor cost
    d) None of the above

    The term which describes the assigning the indirect cost, to any cost object is classified as:

    a) Cost allocation
    b) Sales tracing
    c) Sales allocation
    d) Cost tracing

    Which of the following companies is most likely to use a process costing system?

    a) A law office
    b) A custom home builder
    c) A car repair business
    d) A food manufacturer

    A cost incurred in one processing department that is transferred to the next processing
    department is called a?

    a) Transferred-in cost
    b) Split cost
    c) Carry-over cost
    d) Conversion cost

    Overheads can be as:

    a) Fixed overheads
    b) Variables overheads
    c) Both A&B
    d) None

    How many manufacturing overhead account adjusted?

    A. One
    B. two
    C. Three
    D. non
    when under allocated overhead occurs the actual manufacturing overhead cost
    is……………
    A. Less
    B. more
    C. both of these
    D. none of these

    when over allocated overhead occurs the actual manufacturing overhead cost
    is……………...
    A. Less
    B. More
    C. A&B
    service companies do not have ……….
    A. Inventory cost
    B. Manufacturing cost
    C. Direct material cost
    D. A & B
    Trace______ labor to job.
    A. Direct labor
    B. Indirect labor
    C. Both A&B
    The mass production through a sequence of several process.
    A. Process costing
    B. Job order costing
    C. Both
    D. None of these
    Job-order and process costing assign………..
    A. Material, labor
    B. Overhead cost
    C. Only material cost
    D. BOTH A&B
    both job order and process order costing system use the---------- manufacturing account.
    A. Same
    B. Different
    C. A & B
    Any unit in an organization where -------- are added to the product.
    A. Material
    B. Labor
    C. Material, labor, overhead
    The output of a processing department must be ------------
    A. Homogeneous
    B. Heterogeneous
    C. Both A &B
    Equivalent units can be calculated in ------------- ways.
    A. One
    B. Two
    C. Three
    D. Four
    Direct labor costs may be------------ in comparison to other product.
    A. Large
    B. Medium
    C. small
    Direct labor and manufacturing overhead may be combined into---------- classification.
    A. One
    B. Two
    C. Five
    D. Six
    The weight average method will be covered in the--------- portion.
    A. Last
    B. End
    C. Main
    D. None of these
    The EUP computation ignores the work performed on the-------- work in process.
    A. Opening
    B. Closing
    C. A &B
    D. None of these

    SHORT QUESTIONS

    1. Define Cost?

    2. What is Unit Cost?

    3. Define Cost estimation?

    4. What is Cost Accounting ?


    5. What is Costing?

    6. Define Cost Control?

    7. What is Determination of selling price ?

    8. Write 5 advantages of Cost Accounting?

    9. Write difference between financial and cost accounting.


    10. Write difference between Managerial and cost accounting.?
    11. Define element of cost?
    12. Define direct material cost?
    13. Define overhead classification under
    production/manufacturing/factory?
    14. Define indirect expenses
    15. Define prime cost?
    16. Define job order costing. Explain with the help of examples?
    17. Explain processing costing with example?
    18. Define Manufacturing Overhead?
    19. Define over and under applied overhead cost?
    20. Define Labor cost?
    21. Causes / Reasons of under applied or over applied overhead?
    22. Write predetermined overhead rate formula?
    23. Write formula of total job cost?
    24. Define under allocated and over allocated?
    25. Differentiate between job order costing and process costing.
    26. define income statement?
    27. define the use of job order costing system in companies?
    28. what is process costing? With example
    29. define similarities
    between job order costing and process order costing.
    30. comparing job order costing and process costing in work process?
    31. comparing job order costing and process costing in processing
    department?
    32. What is equivalent units of production. Enlist its types.
    33. Differentiate between weighted averaged method and FIFO Method?

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