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This set of Cost Management Multiple Choice Questions & Answers (MCQs) focuses on Cost Management Set 5
Q1 | Public utility undertakings must invariably adopt---------
- Operating costing
- Output costing
- Contract costing
- Multiple costing
Q2 | Kerala Electricity Board must make use of-----------
- Single or unit costing
- Job costing
- Process costing
- Operating cost
Q3 | The method of costing used in case of a gas company is termed as---------
- Job costing
- Process costing
- Operating costing
- Contract costing
Q4 | Mines `A’ and `B’ are at a distance of 10 kms and 15 kms from the factory. The cost per tonne-km incase of mine A is Rs. 3 while it is R. 2.5 in case of mine B. The factory should procure coal from------------
- Mine A only
- Mine B only
- Both from mines A and B in the ration of 3: 2
- Can’t decide.
Q5 | In case of steam company, the cost per unit is calculated on the basis of---------
- Total quantity of lbs. produced
- Total quantity of kwh generated
- Total quantity of tones produced
- Any of the above.
Q6 | Calendar variance is the sub variance of ---------------
- Labour variances
- Sales variances
- Fixed Overhead variances
- Variable Overhead variances
Q7 | Which of the following is /are support activity in Value Chain Analysis?
- Procurement
- Firms’ infrastructure
- HRM
- All of these.
Q8 | Which of the following is /are primary activity in Value Chain Analysis?
- Procurement
- Firms’ infrastructure
- HRM
- Service
Q9 | ----------- variance is always adverse.
- Material yield variance
- Labour rate variance
- Idle time variance
- None of these
Q10 | ----------- are those products which are manufactured in different varieties by the same industry.
- Joint products
- By products
- Co-products
- All of these
Q11 | ---------- means ‘Change for better’.
- Kanban
- Kaizen
- Sigma
- Seitan
Q12 | Lean manufacturing can be achieved by using-----------
- Activity based costing
- Target costing
- Just in Time
- Life cycle costing
Q13 | ----------is the cost attribution to the cost unit on the basis of benefits received from indirect activities.
- Activity based costing
- Target costing
- Backflush costing
- Life cycle costing
Q14 | Traditional absorption costing is ----------
- Activity based
- Volume based
- Transaction based
- All the above
Q15 | In Activity based costing, importance given to-----------
- Direct Cost
- Relevant cost
- Overhead
- Opportunity cost
Q16 | ------------ is the item of product. Job, process or customer for which cost are to be determined.
- Cost Driver
- Cost object
- Cost pool
- Cost concept
Q17 | ‘Cost of Procurement’ is an example of---------------
- Cost Driver
- Cost object
- Cost pool
- Cost Centre
Q18 | ----------- in Activity Based Costing is like ‘cost centre’ in traditional costing.
- Activity Cost Driver
- Cost object
- Cost pool
- Resource Cost driver.
Q19 | ---------- cost is also known as hypothetical or notional cost.
- Opportunity cost
- Out of pocket cost
- Imputed cost
- Relevant cost