Cost Accounting MCQs
UKPSC Assistant Accountant Exam
Total Marks in this Section: 6 Marks
In this Post You will get Cost Accounting MCQS for UKPSC Assistant Accountant Exam. This UKPSC Assistant Accountant exam is conducted every year by Uttarakhand Government.
This Exam is conducted into two medium – Hindi Medium and English Medium.
Hindi Medium exam is known as UKPSC Sahayak Accountant Exam and English Medium Exam is know as UKPSC Assistant Accountant Exam.
Question Paper Consists of Two Parts – Section A (Commerce and Management) and Section B – Hindi. Section A Consists of 80 Questions and Section B Consists of 20 Questions.
Cost Accounting MCQs is the First Part of Section which covers 06 Marks. We preparing UKPSC Assistant Accountant Exam Notes. We keep our posts updated, so visit our webiste frequently.
Choose the correct answer to the following questions from the given alternatives:
1. Cost accounting is useful for:
a) Ascertaining cost.
b) Controlling cost.
c) Presenting cost information to the management.
d) All of the above.
Ans: d) All of the above.
2. Financial Accounting is useful for:
a) Ascertaining cost.
b) Controlling cost.
c) Presenting cost information to the management.
d) Ascertaining profit or loss and financial position of a firm.
Ans: d) Ascertaining profit or loss and financial position of a firm.
3. The main purpose of Cost Accounting is
a) to maximise profit.
b) to help in inventory valuation.
c) to help in the fixation of selling price.
d)Â to provide information to management for decision making.
Ans: d)Â to provide information to management for decision making.
4. Cost Accounting provides information primarily for:
a) Shareholders.
b) Management.
c) Investors.
d) Government.
Ans: b) Management.
5. The main purpose of Cost Accounting is
a) to maximise profit.
b) to help in inventory valuation.
c) to help in the fixation of selling price.
d)Â to provide information to management for decision making.
Ans: d)Â to provide information to management for decision making.
6. Cost Accounting provides information primarily for:
a) Shareholders.
b) Management.
c) Investors.
d) Government.
Ans: b) Management.
7. Direct expenses are:
a) Directly charged to production.
b) Added while calculating prime cost.
c) Not included in overheads.
d) All of the above.
Ans: d) All of the above.
8. Which of the following is not a method of costing?
a) Contract Costing.
b) Operating Costing.
c) Batch Costing.
d) Marginal Costing.
Ans: d) Marginal Costing.
9. Which of the following is not a technique of costing?
a) Uniform costing.
b) Standard costing.
c) Absorption costing.
d) Unit costing.
Ans: d) Unit costing.
10. Specify the expenses which are excluded from costs?
a) Direct expenses.
b) Factory overheads.
c) Expenses on issue of shares.
d) Depreciation.
Ans: c) Expenses on issue of shares.
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11. Specify the cost unit and method of costing suitable for below mentioned industries and enterprises:
|
Industries |
Cost unit |
Method of costing |
|
Textiles Sugar Steel and Cement Oil refining Hospital Transport Toy making Automobile Industry Toy Making |
Meters Tonne Tonne Per tonne or per quintal Bed occupied per day/No of patient visits Passenger or Tonne per kilometer Number Number of vehicle A Batch |
Process Costing Process Costing Process Costing Process costing Operating or Service costing Operating or Service costing Batch Costing Job costing Batch Costing |
12. Prime cost includes
a) Direct material + Direct labour + Works expenses.
b) Direct material + Direct labour + Chargeable expenses.
c) Direct material + Direct labour + Office expenses.
d) Sum of all Indirect Expenses.
Ans: b) Direct material + Direct labour + Chargeable expenses.
13. Which of the following items is not included in preparation of cost sheet?
a) Purchase returns.
b) Carriage inwards.
c) Sales commission.
d)Â Interest paid.
Ans: d)Â Interest paid.
14. Direct expenses are:
a) Directly charged to production.
b) Added while calculating prime cost.
c) Not included in overheads.
d) All of the above.
Ans: d) All of the above.
15. In job costing to record the issue of direct materials to a job which of the following document is used?
a) Purchase order.
b) Goods receipt note.
c)Â Material requisition.
d) Purchase requisition.
Ans: c)Â Material requisition.
16. The classification of items in ABC analysis is made on the basis of:
a) Investment value of materials.
b) Consumption value of materials.
c) Quantity of materials consumed.
d) All of these.
Ans: d) All of these.
17. In which of the following methods, issues of materials are priced at a pre-determined rate?
a) Inflated price method.
b) Standard price method.
c) Replacement price method.
d) Specific price method.
Ans: b) Standard price method.
18. In which of the following methods, materials are issued at the price prevailing at the time of issue?
a) Inflated price method.
b) Standard price method.
c) Replacement price method.
d) Specific price method.
Ans: c) Replacement price method.
19. The storekeeper should initiate a purchase requisition when stock reaches.
a) Minimum level.
b) Maximum level.
c) Re-order level.
d) Average level.
Ans: c) Re-order level.
20. Which of the following material losses should be transferred to Costing Profit and Loss Account?
a) Loss by evaporation.
b) Loss due to improper storage of materials.
c) Loss due to breaking the bulk.
d) All of these.
Ans: b) Loss due to improper storage of materials.
21. When material prices fluctuate widely, the method of pricing that gives absurd results is:
a) Simple average price.
b) Weighted average price.
c) Moving average price.
d) Inflated price.
Ans: a) Simple average price.
22. When price fluctuate widely, the method that will smooth out the effect of fluctuations is
a) Simple average.
b) Weight average.
c) FIFO.
d) LIFO.
Ans: b) Weight average.
23. In which of the following methods, the charge to production is not at actual cost?
a) Weighted average price.
b) Standard price.
c) Replacement price.
d) All of these.
Ans: d) All of these.
24. Which method is suitable in case of rising prices?
a) Simple average.
b) Weight average.
c) FIFO.
d) LIFO.
Ans: d) LIFO.
[Hint: In case of rising prices, LIFO method is suitable and in case of falling prices FIFO is suitable.]
25. Which method is suitable in case of falling prices?
a) Simple average.
b) Weight average.
c) FIFO.
d) LIFO.
Ans: c) FIFO.
26. Which cost accounting standard deals with labour cost?
a) CAS – 5.
b) CAS – 6.
c) CAS – 7.
d) CAS – 8.
Ans: c) CAS – 7.
27. Cost accounting standard 7 deals with:
a) Material cost.
b) Labour cost.
c) Overheads.
d) None of the above.
Ans: b) Labour cost.
28. Direct labour cost includes:
a) Labour Cost of regular working hours.
b) Labour cost of overtime hours.
c) Both a & b.
d) None of the above.
Ans: c) Both a & b.
29. Which of the following is not direct labour?
a) Assembly-line workers.
b) Machine operators.
c) Manual workers.
d) Time-keeper.
Ans: d) Time-keeper.
30. The payment to direct labour form part of which of the following heads?
a) Prime cost.
b) Works overheads.
c) Office and administrative overheads.
d) Selling and distribution overheads.
Ans: a) Prime cost.
31. Which of the following is indirect labour?
a) Mechanics.
b) Supervisors.
c) Foremen.
d) All of the above.
Ans: d) All of the above.
[Hint: Indirect labour includes chowkidars, sweepers, foremen, watchmen, time-keeper, cleaners, repairers, supervisors, mechanics etc.]
32. The payment to indirect labour form part of which of the following heads?
a) Works overheads.
b) Office and administrative overheads.
c) Selling and distribution overheads.
d) All of the above.
Ans: d) All of the above.
33. Labour turnover is measured by
a) Number of workers replaced/average number of workers [Replacement method].
b) Number of workers left / average number of workers [Separations method].
c) Number of workers jointing plus Number of workers left / average number of workers [Flux method].
d) All of the above.
Ans: d) All of the above.
34. Unavoidable cause of labour turnover:
a) Discharge of inefficient workers.
b) Discharge of workers due to long absence.
c) Retrenchment of workers due to shortage of work.
d) All of the above.
Ans: d) All of the above.
35. High labour turnover can reduced by:
a) Fair monetary and non-monetary benefits.
b) Suitable working conditions.
c) Participation in management.
d) All of the above.
Ans: d) All of the above.
36. Which of the following is a not preventive cost of labour turnover?
a) Cost of providing good working conditions.
b) Cost of providing educational facilities.
c) Cost of providing subsidized meals.
d) Cost of recruitment of new workers.
Ans: d) Cost of recruitment of new workers.
37. Which of the following is not a replacement cost of labour turnover?
a) Cost of training of new workers.
b) Loss of profit due to loss of production.
c) Loss of production due to inefficiency of workers.
d) Cost of providing safety measures against working conditions.
Ans: d) Cost of providing safety measures against working conditions.
38. In Reconciliation Statement expenses shown only in financial accounts are
a)Â added to financial profit.
b) added to costing profit.
c) ignored.
d) deducted from financial profit.
Ans: a)Â added to financial profit.
39. Which of the following is a service department?
a) Refining department.
b) Machining department.
c)Â Receiving department.
d) Finishing department.
Ans: c)Â Receiving department.
40. In Reconciliation Statement expenses shown only in cost accounts are
a) Added to financial profit.
b) Deducted from financial profit.
c) Ignored.
d) Deducted from costing profit.
Ans: c) Ignored.
41. In a job cost system, costs are accumulated
a) On a monthly basis.
b) By specific job.
c) By department or process.
d) By kind of material used.
Ans: b) By specific job.
42. In Reconciliation Statement income shown only in financial accounts is:
a) Added to financial profit.
b) Deducted from financial profit.
c) Ignored.
d) Deducted from costing profit.
Ans: b) Deducted from financial profit.
43. When you attempt a reconciliation of profits as per Financial Accounts and Cost Accounts, the following is done:
a) Add the under absorption of overheads in Cost Accounts if you start from the profits as per Financial Accounts.
b) Add the under absorption of overheads in Cost Accounts if you start from the profits as per Cost Accounts.
c) Add the over absorption of overheads in Cost Accounts if you start from the profits as per Financial Accounts.
d) Add the over absorption of overheads in Cost Accounts if you start from the profits as per Cost Accounts.
Ans: a) Add the under absorption of overheads in Cost Accounts if you start from the profits as per Financial Accounts.
44. Batch Costing is applied effectively in the following situation:
a) Paper manufacturing.
b)Drug manufacturing.
c) Designer clothes manufacturing.
d) Oil refining.
Ans: b) Drug manufacturing.
45. Which of the following best describes a fixed cost?
a)Â It may change in total where such change is unrelated to changes in production.
b) It may change in total where such change is related to changes in production.
c) It is constant per unit of change in production.
d) It may change in total where such change depends on production within the relevant range.
Ans: a)Â It may change in total where such change is unrelated to changes in production.
46. Wages for abnormal idle time is:
a) Included in prime cost.
b) Charged to costing profit and loss account.
c) To be treated as overheads expenses.
d) None of the above.
Ans: b) Charged to costing profit and loss account.
47. Idle Time arises only when workers are paid on:
a) Time Basis.
b) Piece Basis.
c) Both of the above.
d) None of the above.
Ans: a) Time Basis.
48. In which of the following incentive plans of wage payment, wage on time basis are NOT guaranteed?
a) Halsey plan.
b) Rowan plan.
c) Taylor’s differential piece rate system.
d) Merrick’s multiple piece rate system.
Ans: c) Taylor’s differential piece rate system.
49. Which method of wage payment proves to be injurious to worker’s health?
a) Time rate method
b) Piece rate method.
c) Halsey premium plan.
d) Rowan premium plan.
Ans: b) Piece rate method.
50. Wages under rowan and Halsey plan are exactly when time saved is:
a) nil.
d) 50% of the standard time.
c) both (a) and (b).
d) None of the above.
Ans: c) both (a) and (b).
51. When the time saved is less than 50% of the time saved:
a) Rowan plan allows more wages to a worker than Halsey plan.
b) Rowan plan allows less wages to a worker than Halsey plan.
c) Rowan and Halsey plan allow equal wages to a worker.
d) All statements are incorrect.
Ans: a) Rowan plan allows more wages to a worker than Halsey plan.
52. When time saved is more than 40% of the standard time, Halsey plan allows
a) more wages than Rowan plan.
b) less wages than Rowan plan.
c) equal wages as compared to Rowan plan.
d) All statements are incorrect.
Ans: a) more wages than Rowan plan.
53. In Halsey plan, bonus on wages of time saved may vary from:
a) ¼ to ½.
b) ¼ to 1/3.
c) 1/3 to 2/3.
d) 0 to ½.
Ans:Â c) 1/3 to 2/3.
54. Taylor’s differential piece rate system provides for higher rate to:
a) Every worker.
b) Efficient workers.
c) Inefficient workers.
d) None of the above.
Ans: b) Efficient workers.
55. Which of the following incentive methods of wage payment should be used for indirect workers?
a) Rowan plan.
b) Taylor’s differential piece rate system.
c) Gantt’s task and bonus plan.
d) None of the above.
Ans: d) None of the above.
56. Which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance?
a) Piece rate system.
b) Time rate system.
c) Differential piece work system.
d) Halsey premium system.
Ans: b) Time rate system.
57. Which of the following method of wage payment does not guarantee wages on time basis?
a) Halsey Premium Plan.
b) Rowan Premium Plan.
c) Time rate method.
d) Piece rate method.
Ans: d) Piece rate method.
58. Overheads is included in:
a) Prime cost.
b) Total Cost.
c) In costing profit and loss account.
d) Labour cost.
Ans: b) Total Cost.
59. Machine hour rate method is applied where:
a) The use of machine is predominant.
b) The use of labour is predominant.
c) The use of material is predominant.
d) All of the above.
Ans: a) The use of machine is predominant.
60. Fixed overheads varies in different levels:
a) Per unit.
b) In total.
c) In both per unit and total.
d) Fixed overheads remain constant in every case.
Ans: a) Per unit.