0% found this document useful (0 votes)

225 views7 pages

MCQ's - Cost Sheet

Uploaded by

aryavaratsharma

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

0% found this document useful (0 votes)

225 views7 pages

MCQ's - Cost Sheet

Uploaded by

aryavaratsharma

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

You are on page 1/ 7

2 Cost Sheet

CHAPTER

MULTIPLE CHOICE QUESTIONS

1. An item of cost that is direct for one business may be ________ for another business.
(a) Important (b) Indirect
(c) Direct (d) none of the above

2. The total of all direct expenses is known as _________ cost.

(a) Prime (b) Works
(c) Production (d) both (a) & (b)

3. Generally, for the purpose of cost sheet preparation, costs are classified on the basis of:
(a) Functions (b) Variability
(c) Relevance (d) Nature

4. Depreciation based on the number of units produced would be classified as what type of cost?
(a) Semi-variable (b) Fixed
(c) Variable (d) None of the above

5. Provident Fund & ESI paid by the employer for production workers are preferably accounted for as:
(a) Direct Labour (b) Indirect Labour
(c) Factory overheads (d) Administrative overheads

6. The cost of goods sold under a periodic cost accumulation system is equal to the:
(a) Cost of goods available for sale less ending finished goods inventory
(b) Cost of goods available for sale plus beginning finished goods inventory
(c) Cost of goods manufactured plus beginning finished goods inventory
(d) Cost of goods manufactured less beginning finished goods inventory

7. The cost of goods manufactured, under a periodic cost accumulation system, is equal to the:
(a) Beginning finished goods inventory plus purchases
(b) Beginning work-in-process plus cost of goods in process during the year
(c) Cost of goods put into production plus beginning work in process less ending work in process
(d) Cost of goods sold less beginning work-in-process
8. The term “conversion costs” refer to:
(a) Manufacturing costs incurred to produce unit of output
(b) All costs associated with manufacturing other than direct labour costs and raw material cost
(c) Costs which are associated with marketing, shipping, warehousing, and billing activates
(d) The sum of direct labour cost and all factory overhead costs

9. The “Prime costs” refers to:

(a) Manufacturing costs incurred to produce unit of output
(b) All costs associated with manufacturing other than direct labour costs and raw material cost
(c) The sum of direct labour cost and all factory overhead costs
(d) The sum of direct labour cost and direct labour costs

10. Costs which are inventorial are:

(a) Manufacturing costs incurred to produce units of output
(b) All costs associated with manufacturing other than direct labour costs and raw material costs
(c) Costs which are associated with marketing, shipping ware housing, and billing activates
(d) The sum of direct labour costs and all factory overhead costs

11. The term ‘cost’ refers to:

(a) An asset that has given benefit and is now expired
(b) The price of products sold or serves rendered
(c) The value of the sacrifice made to acquire goods or services
(d) None of the above

12. Cost sheet includes:

(a) Only direct costs (b) Only indirect costs
(c) Both direct and indirect costs (d) Profit & its appropriations

13. According to elements of cost, cost is classified into:

(a) Material (b) Labour
(c) Expenses (d) All of the above

14. Total of prime cost and work overheads are known as:
(a) Work cost (b) Cost of production
(c) Cost of sales (d) Total cost

15. Which of the following does not form part of prime cost?
(a) Cost of packing
(b) Cost of transportation paid to bring materials to factory
(c) GST paid on raw materials (input credit cannot be claimed)
(d) Overtime premium paid to workers

Cost Sheet 7
16. SK Ltd. received an order, for which it purchased a special frame for manufacturing, it is a
part of:
(a) Direct Materials (b) Direct Expenses
(c) Factory Overheads (d) Administration Overheads

17. The other name of Prime Cost is:

(a) Direct cost (b) Flat cost
(c) Total cost (d) All of the above

18. Work cost is also known as:

(a) Prime cost (b) Manufacturing cost
(c) Cost of production (d) All of the above

19. Wages of delivery van driver is included in:

(a) Factory overheads (b) Office overheads
(c) Selling and distribution overheads (d) None of the above

20. In cost sheet realizable value of scrap is deducted from:

(a) Factory overheads (b) Direct cost
(c) Work cost (d) Direct material

21. Salary paid to plant supervisor is a part of:

(a) Direct expenses (b) Factory overheads
(c) Quality control cost (d) Administration cost

22. Depreciation of director’s laptop is treated as a part of:

(a) Administration overheads (b) Factory overheads
(c) Direct expenses (d) Research & Development cost

23. A manufacture has set-up a lab for testing of products for compliance with standards, salary of
this lab staffs are part of:
(a) Work overheads (b) Quality control cost
(c) Direct expenses (d) Research & development costs

24. Salary paid to factory store staff is part of:

(a) Factory overheads (b) Production cost
(c) Direct employee cost (d) Direct material cost

25. Canteen expenses for factory workers are part of:

(a) Factory overheads (b) Administration cost
(c) Marketing cost (d) None of the above

26. A company pays royalty to State Government on the basis of production, it is treated as:
(a) Direct material cost (b) Factory overheads
(c) Direct expenses (d) Administration cost
8 Cost & Management Accounting
27. Drawing office expenses are included in ________ overheads.
(a) Factory overheads (b) Office overheads
(c) Selling and distribution overheads (d) None of the above

28. Haulage expenses are included in ________ overheads.

(a) Factory overheads (b) Office overheads
(c) Selling and distribution overheads (d) None of the above