Cost and Managerial Accounting Questions and Answers Part-8

1. Costing and cost accounting are ______________
a) Not the same
b) one and the same
c) not related at all
d) none of these

Answer: a

2. ______________ is one which can be conveniently identified with and charged to a particular unit of cost.
a) Direct cost
b) Indirect cost
c) Overhead
d) none of these

Answer: a

3. The primary emphasis of ______________ cost is on the planning function of management.
a) Budgeted
b) standard
c) period
d) none of these

Answer: a

4. An opportunity cost is ______________
a) the advantage foregone
b) the cost
c) the income
d) none of the above.

Answer: a

5. Depreciation is ______________ expenditure.
a) fixed
b) variable
c) adjustable
d) Semi-variable

Answer: d

6. Stores Ledger is maintained in the ______________
a) Store
b) finance department
c) cost accounting department
d) Both a & b

Answer: c

7. Material abstract is also known as ______________
a) Material issue analysis sheet
b) bill of materials
c) stores ledger
d) none of the above

Answer: a

8. Specific price method of valuing material issue is used when ______________
a) Materials are purchased for specific job or work order
b) materials are subject to natural wastage
c) prices fluctuate
d) none of these

Answer: a

9. The principle types of inventories are raw materials and , ______________ and finished goods
a) Processed materials
b) Goods-in-progress
c) stored goods
d) goods for dispatch

Answer: b

10. ______________ is a technique of stock control which leads to saving of time of the management because attention is required to be paid only to some of the items rather than on all the items.
a) ABC Analysis
b) JIT Inventory System
c) VED Analysis
d) Perpetual Inventory System

Answer: a