On This Page
This set of Cost Management Multiple Choice Questions & Answers (MCQs) focuses on Cost Management Set 4
Q1 | If Profit divided by the capital employed, it reveals--------------
- Labour productivity
- Machine productivity
- Material productivity
- None of these
Q2 | The type of spoilage that should not affect the cost of inventories is
- Abnormal spoilage
- Seasonal spoilage
- Normal spoilage
- Indirect spoilage
Q3 | Materials may not be put into process
- At the beginning of an operation
- Continuously
- At the end of the operation
- In the shipping department.
Q4 | Process cost method is especially suitable for
- Custom production
- FIFO
- Standard costs
- LIFO
Q5 | In process costing, costs follow
- Price rise
- Product flow
- Price declines
- Finished goods
Q6 | When average costing is used, the opening inventory costs are
- Kept separate from the costs for the new period
- Added to the costs of the new period
- Subtracted from the new costs
- Averaged with other costs to arrive at total cost.
Q7 | A disadvantage of FIFO costing is that
- The first units produced cannot be distinguished from later production.
- Several units’ costs are used at the same time.
- The units have to be kept separate
- The shipping costs are higher
Q8 | Which of the following method of costing can be used in a large oil refinery?
- Process costing
- Unit costing
- Operating costing
- Job costing
Q9 | Which of the following pair is odd one?
- Construction-Contract costing
- Ship-building-Job costing
- Brick manufacturing – Process costing
- Transport undertaking – Operating costing
Q10 | A product which has practically no sales or utility value is--------
- Waste
- Spoilage
- Scrap
- Defectives
Q11 | Trimmings in timber industry should be treated as a---------
- Waste
- Spoilage
- Scrap
- Defectives
Q12 | The type of process loss that should not affect the cost of inventory is
- Abnormal loss
- Seasonal loss
- normal loss
- standard loss
Q13 | The stage where joint products are separated from each other is known as--------
- break-even point
- angle of incidence
- split-off point
- Point of indifference
Q14 | Fifty units are put in a process at a total cost of Rs. 90. Wastage is normally 10% without any scrapvalue. If output is 40 units the amount of abnormal loss would be-----------
- Rs. 80
- Rs. 10
- Rs. 8
- Rs. 9
Q15 | Abnormal loss is charged to--------------
- process account
- costing profit and loss account
- Normal loss account
- None of these.
Q16 | Classification and accumulation of costs by fixed and variable costs is a distinctive feature of-----------
- Process costing
- Unit costing
- Operating costing
- Batch costing
Q17 | Composite unit is distinctive feature of-------
- Single or output costing
- Process costing
- Job costing
- Operating costing
Q18 | Electricity generating company should employ----------
- Unit costing
- Process costing
- Operating costing
- Multiple costing
Q19 | Cinema houses must adopt-------
- Operating costing
- Job costing
- Batch costing
- Contract costing
Q20 | For a library the best method of costing suitable is-----------
- Output costing
- Operating costing
- Process costing
- Multiple costing
Q21 | For an educational institute the right method of costing is------------
- Output costing
- Job costing
- Operating costing
- Process costing
Q22 | Hospitals must make use of-----------
- Operating costing
- Batch costing
- Process costing
- Multiple costing
Q23 | For hotels the best method of costing is----------
- Single or output
- Contract costing
- Process costing
- Operating costing
Q24 | Flight/Air services must make use of-----------
- Job costing
- Operating costing
- Batch costing
- Process costing
Q25 | Indian Railways must adopt----------
- Operating costing
- Unit costing
- Batch costing
- Multiple costing