YouTuber : Suraj Patel Education
ADVANCED
COST ACCOUNTING
M.COM [PART 1]
Part 2 Link Click Here
https://www.surajpateleducation.com/2020/11/advanced-cost-accounting-mcom-paer-1.html
1)
Equivalent units are
a)
Notional quantity of
completed
b)
Units equal to output
c)
Units equal to input
d)
None of the above
ANS: A
2) The balance of factory
overhead control account represents ______
a)
Under absorption of overhead
b)
Over absorption of overhead
c)
Either of the above
d)
None of the above.
ANS: A
3) A cost that cannot be
change by any decision made known as ______
a)
Sunk cost
b)
Opportunity cost
c)
Indirect cost
d)
Mixed cost
ANS: A
4) Fixed cost per unit
_______ with increase in production.
a)
Increases
b)
Remains constant
c)
Decreases
d)
None of the above
ANS: C
5) Operating costing is
applicable to ______.
a)
Transport companies
b)
Electricity companies
c)
Cinemas
d)
All of the above
ANS: D
6) Fixed overhead
efficiency variance is a difference between _______
a)
Standard cost and actual cost
b)
Standard hours and actual hours
c)
Recovered overheads and standard overhead
d)
None of the above
ANS: C
7) Cost audit is
compulsory for companies _______
a)
Which ordered by the state government
b)
Which ordered by the central government
c)
Which ordered by ICAI.
d)
None of the above
ANS: B
8) Product cost budget
shows _______
a)
Budgeted cost of production
b)
Budgeted cost of sales
c)
Budgeted purchases
d)
Budgeted capacity
ANS: A
9) The unit of cost for
cinema theatres is ________
a)
Per man show
b)
Per man day
c)
Per visitor
d)
All of the above
ANS: D
10) A Budget is expressed
in _______
a)
Financial terms only
b)
Quantitative terms only
c)
Both financial and quantitative terms only
d)
financial and/or quantitative terms
ANS: A
11) Under FIFO method in
process costing the opening stocks are _____
a)
kept separated from costs of the current period
b)
added to the costs of the current period
c)
subtracted from the cost of the current period
d)
divided with the cost of the current period
ANS: A
12) Cost and financial
accounts are required to be reconciled under _______
a)
cost control accounts system
b)
integrated system
c)
both of the above
d)
none of the above
ANS: A
13) An increase in the
sales price _____
a)
Does not effect the break
even point
b)
Lowers the net profit
c)
Increases the break even point
d)
Lower the break even point
ANS: D
14) Fixed overhead calendar
variance arises due to ______
a)
Change in the No. of working days
b)
Change in output
c)
Change In the labour hours
d)
Change in input
ANS: D
15) The cost auditor must
be familiar with provision of ______
a)
Labour law
b)
Negotiable instrument act.
c)
Companies act,1956
d)
Sales of goods act.
ANS: C
16) Contribution margin in
also known as ______
a)
Gross margin
b)
Net profit
c)
Marginal income
d)
Earning after tax
ANS: A
17) Process cost can is
based on the concept of______
a)
Job cost
b)
Incremental cost
c)
Average cost
d)
Sunk cost
ANS: A
18) Method of costing used
by service provider is known as________
a)
Job costing
b)
Operating costing
c)
Operation costing
d)
Process costing
ANS: B
19) When materials are
transferred from job A to job B ,an entry must be passed in________
a)
Financial books
b)
Cost books
c)
Both set of book
d)
None of above
ANS: B
20) An increase in physical
volume of sales will___________
a)
Change in break even point
b)
Change volume ratio
c)
Changes in marginal of safety
d)
Not changes anything
ANS: A
21) In marginal costing
,all costs are classified into____________
a)
Variable and semi- variable
b)
Fixed and semi- fixed
c)
Semi-variable and semi-fixed
d)
Variable and fixed
ANS: D
22) Sales variance can be
calculated by___________
a)
Profit method and selling price
method
b)
Standard cost method and profit method
c)
Material variance plus labour variance plus overhead variance
d)
All the above
ANS: D
23) The cost audit report
must be signed by___________
a)
Board of director
b)
The cost auditor
c)
Chairman on behalf of the board of director
d)
The cost auditor and Board of director
ANS: D
24) The budget committee
normally decide ________
a)
Fixing budget center
b)
Budget period
c)
Key factor
d)
All the above
ANS: D
25) A cost auditor is
appointed at____________
a)
Annual general meeting
b)
Board of director meeting
c)
Extra – ordinary general meeting
d)
Statutory meeting
ANS: B
26) The cost audit report
must be circulated to _______
a)
Employees of the company
b)
Members of the company when ordered by the central govt.
c)
Secured and unsecured loan creditors of the company
d)
Such persons as decided by the board of directors
ANS: B
Amazon Big Deal
Up to 60% off | Festive wear from Indian manufacturers
27) In process costing,
abnormal gain arises when_______
a)
Actual loss and normal loss are equal
b)
Actual loss is more than normal loss
c)
Actual loss is less than normal loss
ANS: C
28) Which of the following
is a variable cost for a hotel.
a)
Depreciation
b)
Salaries to staff
c)
Electricity
d)
Insurance
ANS: C
29) Fixed cost per unit
increases when _______
a)
Production increases
b)
Production decreases
c)
Variable cost decreases
d)
P/V ration increases
ANS: B
30) One of the limitations
of standard costing is _________
a)
Cost control/reduction in possible
b)
It helps in fixation of responsibility
c)
It is difficult to establish standards
d)
It supports planning
ANS: C
31) The first budget
prepared is _________
a)
Production budget
b)
Cash budget
c)
Labour hours budget
d)
Sales budget
ANS: D
32) The cost audit report
must be submitted ________
a)
Within 280 days from the days of cost auditor appointment
b)
Within 30 days of the notice for A.G.M
c)
Within 180 days from the end of the financial year.
d)
As per the time fixed by the members
ANS: C
33) Period cost means
__________
a)
Variable cost
b)
Prime cost
c)
Fixed cost
d)
Factory cost
ANS: C
34) Costing method used to
ascertain the cost of providing a service such as transport, hotel, hospital,
gas or electricity-
a)
Operation
b)
Process
c)
Operating
d)
Job
ANS: A
35) Which of the following
does not use process costing _______
a)
Oil refining
b)
Distilleries
c)
Sugar
d)
Aircraft manufacturing
ANS: D
36) The standard which can
be attained under the most favourable condition possible _________
a)
Ideal standard
b)
Expected standard
c)
Current standard
d)
Normal standard
ANS: A
37) A master budget
comprises of ___________
a)
Budgeted income statement and budgeted cash flow only
b)
Budgeted income statement and balance sheet only
c)
Budgeted income statement, and capital expenditure only
d)
Budgeted income statement balance sheet and cash flow only
ANS: D
38) Materials requisition
note ________
a)
Authorizes and records the issue of materials for use
b)
Records the return of unused materials
c)
Records the transfer of materials from one store to anther
d)
A classified record of materials issues, return and transfer
ANS: A
39) In process costing what
are equivalent unit __________
a)
Production output expressed as expected performance
b)
Production of homogenous product
c)
Notional whole units representing incomplete units
d)
Units produced in more than one process
ANS: C
40) If sales are Rs. 90,000
and P/V ratio is 33.33% variable cost is _________
a)
Rs. 60,000
b)
Rs.2,70,000
c)
Rs.30,000
d)
None of the above
ANS: A
41) Generally
administration overhead are changed to ________
a)
Finished goods control A/C
b)
WIP control A/C
c)
Cost of sales A/C
ANS: A
42) Insurance is _______
cost under obertating costing
a)
Fixed cost
b)
Variable cost
ANS: A
43) The …………………the
provisions of ___________
a)
Labour law
b)
Companies act 2013
c)
Sales of goods act
ANS: B
44) Product cost budget
shows ___________
a)
Budgeted cost of production
b)
Budgeted purchases
c)
Budgeted cost of sales
ANS: A
45) When fixed cost
increases the breakeven point ________ sales.
a)
Increases
b)
Decreases
c)
No effect
ANS: A
46) Application for
appointment of cost auditor should be sent to department of company affairs
within __________ days of commencement of financial year.
a)
30
b)
45
c)
50
d)
60
ANS: A
47) If prescribed form of
cost audit report is not following by the cost auditor then the fine will be
Rs.
a)
500
b)
1000
c)
5000
ANS: C
48) The cost of product as
determined under standard cost system is __________
a)
Fixed cost
b)
Historical cost
c)
Direct cost
d)
Pre-determined cost
ANS: D
49) Process cost is based
on the concept of __________
a)
Average cost
b)
Marginal cost
c)
Standard cost
ANS: A
50) Period cost means
___________
a)
Variable cost
b)
Fixed cost
c)
Prime cost
ANS: B
If You Need Most Importance MCQ PDF ADVANCED COST ACCOUNTING Question Bank Than Pay Rs 100 Only
Contact 8652719712 / 8779537141