Applied Cost Accounting Set 5

Bachelor of Commerce (B Com)

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This set of Applied Cost Accounting Multiple Choice Questions & Answers (MCQs) focuses on Applied Cost Accounting Set 5

Q1 | In marginal costing managerial decisions are guided by…………than by profit
  • Marginal cost
  • Variable cost
  • Incremental cost
  • Contribution margin
Answer: Contribution margin
Q2 | There will be…………in marginal costing when there is production but no sales
  • Profit
  • Loss
  • Cost
  • Income
Answer: Loss
Q3 | Marginal costing is a technique of
  • Cost reduction
  • Cost control
  • Profit planning
  • Profit maximization
Answer: Cost control
Q4 | In differential cost analysis decisions are taken by comparing the………… with differential cost
  • Marginal cost
  • Marginal revenue
  • Incremental revenue
  • Either (b) or (c)
Answer: Incremental revenue
Q5 | A………… is useful only when the actual level of activity corresponds to the budgeted level of activity
  • Flexible budget
  • Master budget
  • Fixed budget
  • Sales budget
Answer: Fixed budget
Q6 | ………… is the act of building budgets
  • Budgeting
  • Estimating
  • Forecasting
  • ZBB
Answer: Budgeting
Q7 | Budgeting system……………. key managerial functions
  • Co-ordinate
  • Integrates
  • Controls
  • Organize
Answer: Integrates
Q8 | ……………. is a budget starts from zero
  • ZBB
  • PB
  • PPB
  • All of these
Answer: ZBB
Q9 | ……………. is the budget incorporating all the components functional budgets
  • Sales budget
  • Production budget
  • Capital budget
  • Master budget
Answer: Master budget
Q10 | ……………. is the most important budget
  • Master budget
  • Cash budget
  • Sales budget
  • Production budget
Answer: Sales budget
Q11 | ……………. forms the basis on which all other budgets are built up
  • Master budget
  • Cash budget
  • Sales budget
  • Summary budget
Answer: Sales budget
Q12 | The job costing each job is a ……………. to which all costs are assigned
  • Profit unit
  • Cost unit
  • Expenses
  • Variable
Answer: Cost unit
Q13 | Job costing can be used in industries using
  • Farm costing
  • Multiple costing
  • Standard costing
  • One-operation costing
Answer: Standard costing
Q14 | The loss incurred on an incomplete contract is transferred to
  • Profit and Loss Account
  • Contract account
  • Work certified
  • Work in progress account
Answer: Profit and Loss Account
Q15 | Contract costing is a basic method of
  • Specific costing
  • Specific order costing
  • Economic batch costing
  • Economic order costing
Answer: Specific order costing
Q16 | In cost-plus contract, the contractor will get costplus
  • Accumulated profit
  • Stipulated profit
  • Earned profit
  • Budgeted profit
Answer: Stipulated profit
Q17 | In marginal costing valuation of stock of work in progress is done on the basis of
  • Market cost
  • Marginal cost
  • Product cost
  • Cost price
Answer: Marginal cost
Q18 | In marginal costing selling price is based on
  • Contribution
  • Marginal cost
  • Market cost
  • Marginal cost plus contribution
Answer: Marginal cost plus contribution
Q19 | The difference between selling price and marginal cost is
  • Profit
  • Marginal cost
  • Contribution
  • Loss
Answer: Contribution
Q20 | Fixed expenses + profit=?
  • Contribution
  • Marginal cost
  • Prime cost
  • Variable cost
Answer: Contribution
Q21 | Stock of work in progress and finished goods are valued at marginal costing not include
  • Fixed cost
  • Semi-fixed
  • Semi-variable
  • Variable
Answer: Fixed cost
Q22 | In the marginal costing method, the actual amount of fixed overheads is wholly charged to
  • Cost sheet
  • Profit and loss
  • Balance sheet
  • Cost account
Answer: Profit and loss
Q23 | ……………..is a financial plan
  • Budget
  • Budgetary control
  • P/V ratio
  • BEP
Answer: Budget
Q24 | Budget control is exercised by
  • Budget officer
  • Budget director
  • Budget controller
  • All the above
Answer: All the above
Q25 | Period for which budget is prepared is called
  • Budget period
  • Financial period
  • Fiscal period
  • Accounting period
Answer: Budget period
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