Sample MCQ of Advance Cost & Management Accounting.pdf

Sample MCQ of Advance Cost & Management Accounting for Pratice 1 What term can be defined as a means of assessing the Master budgeting Activity based costing Variance analysis Investment appraisal difference between a predetermined amount and...

Sample MCQ of Advance Cost & Management Accounting for Pratice 1 What term can be defined as a means of assessing the Master budgeting Activity based costing Variance analysis Investment appraisal difference between a predetermined amount and the actual amount? 2 The formula for the materials price variance is ………. Standard materials Standard price less Standard hours less Standard price less quantity less actual actual price multiplied actual hours actual price multiplied quantity multiplied by by standard quantity multiplied by actual by actual quantity standard price quantity 3 When analyzing sales variances, which of the following Mix variances Selling price variances Recover rate Volume variances would not be an important factor? variances 4 A favourable labour efficiency variance is likely to have been Trade union conflicts Higher wages Lower skilled Inferior materials caused by producing labour being used being used motivational benefits 5 When calculating cost variances under a standard costing Compare actual costs Compare standard Compare actual Compare actual system we must….. with those that were costs with actual costs costs with standard outputs against budgeted at the standard level costs at the actual budgeted outputs of activity level of output 6 A favourable variance occurs when…….. Actual costs are less Standard costs are Standard costs are Actual costs are less than static costs less than actual costs less than static than standard cost costs 7 Standard costs may be used for ……. Product costing Planning Controlling All of the above 8 A standard cost is….. A cost which is paid for The average cost in A pre determined Historical cost of group of similar items the industry cost producing a product last year 9 Difference between budget and standard is that … A budget express what A budget express A budget express Standards are cost were, while a management plan, total amount excluded from cost standard express what while standard standard express a accounting system cost should be reflects what actually unit amount whereas budget are happened included in cost accounting system 10 Idle time variance is……. Idle time x actual labour Idle time x standard Idle time x Idle time x historical rate budgeted labour cost rate 11 An unfavourable material usage arises because of : Price increase in raw Price decrease in raw Less than More than anticipated materials materials anticipated normal normal wastage in the wastage in the manufacturing process manufacturing process 12 Which of the following departments is most likely Warehousing Receiving Purchasing Production responsible for a price variance in direct materials? 13 Standard costing can be used for External reporting Internal reporting Internal and Stakeholders reporting external reporting 14 Standard costing is …… Costing method Costing technique Costing Costing absorption classification 15 Standard is determined for……. A specified period Specified level of Each element of Monetary terms only activity only cost 16 Which of the following is not a reason for an idle time Wage rate increase Machine breakdown Illness or injury to Non availability of variance? worker material 17 If the standard cost is higher than the actual cost then the Positive Favourable Adverse Negative difference would be known as ………. 18 Which of the following would not explain a Favourable wage Higher unemployment Reduction in power of New technology Introduction of rate variance? in industrial sector trade unions minimum wage legislation 19 A benefit of having a standard costing system would not Eventual reduction of Better system for Allows creative Faster reporting include …….. administrative work checking efficiencies input into budgeting decisions 20 Workers being paid a rate in excess of their wage rate for Overtime Price rate Commission Fees working additional hours are paid ….. 21 Which of the following would not account for an adverse General inflation Rising exchange rates Scarcity in supply Poorly trained materials variance? for imported materials of materials production staff 22 Which of the following normally associated with an adverse Higher sales volume Higher selling prices A slight upwards A slight downwards sales variance? change in demand change in demand following a major following a major price reduction price increase 23 A standard that represents the most likely scenario can be Average standard Basic standard Ideal standard Attainable standard referred to as the 24 Labour rate variance can be calculated by the following (standard wage rate – (standard hours – (standard wage Budgeted labour costs equation ……. actual wage rate ) x actual hours) x actual rate – actual wage – actual labour costs actual hours worked wage rate rate) x standard hours works 25 The standard cost card contains quantities and costs for…… Direct material only Direct labour only Direct material and Direct material, direct direct labour only labour and overhead 26 Standard cost may be used by ……. Universities Government agencies Charitable All of the above organisation 27 Idle standard …….. Are rigorous but Are the standard Reflect optimal Will always motivate attainable generally used in performance under the employees to master budget perfect operating achieve maximum conditions output 28 A total variance is best defined as the difference between Actual cost and total Standard cost and Actual cost and Actual cost and total total…….. cost applied for the total cost applied to total standard cost cost applied for the standard output of the production of the actual input actual output of the period of the period period 29 Which of the following would accompany an Unfavourable Favourable direct Unfavourable direct Unfavourable Unfavourable fixed direct labour efficiency variance? materials usage variance materials price variable overhead overhead spending variance efficiency variance variance 30 Material usage variance = material mix variance + …….. Material yield variance Material cost variance Material price Material quantity variance variance 31 Which of the following can be used to calculate the materials (AQ-SQ) X SP (AP-SP) X AQ (AP-SP) X SQ (AQ-SQ) X AP price variance? 32 Standard may be expressed both in….. Quantitative measures Monetary measures Quantitative and Quantitative or monetary monetary measures measures 33 Which of the following departments is most likely Warehousing Receiving Purchasing Production responsible for a price variance in direct materials? 34 The difference between the actual price and the standard Direct materials Direct materials Direct materials Direct materials price, multiplied by the actual quantity of materials spending variance volume variance price variance quantity variance purchased is the ……. 35 In interior decoration, method of costing to be applied is ….. Service costing Job costing Marginal costing Single output costing 36 In goods transport service industries most used cost unit Per passenger per tonne Per tonne Per tonne km Per visitor is……. 37 Operating costing is suitable for …….. Job order business Contractors Sugar industries Service industries 38 ……method of costing is used when it is desired to ascertain Operating costing Operation costing Composite costing Process costing the cost of carrying out an operation in a department. 39 Service costing is also known as………… Operation costing Operating costing Direct costing Uniform costing 40 Which of the following is not method of costing? Uniform costing Operating costing Operation costing Contract costing 41 Service costing is used by ……. Power generation Hospitals Transport All of the above companies 42 Which o the following ‘cost unit’ is not used by the Tonne km Passenger km Kilowatt km Per meter organisation engaged in providing services? 43 Describe the method of costing to be applied in case of Operating costing Process costing Contract costing Job costing nursing home…… 44 ……..method of costing is used when it is desired to ascertain Operating costing Operation costing Composite costing Process costing the cost of carrying out an operation in a department. 45 Which of the following method of costing is suitable for Job costing Operating costing Multiple costing Batch costing ‘airline company’? 46 Which of the following organisation should not be advised to Distribution service Hospital Maintenance A light engineering use service costing? division of a company manufacturing company 47 In service costing cost are classified as ….. Standing charges, Fixed costs, normal Variable cost, fixed Variable cost, fixed running charges and cost and standard cost cost and marginal cost and marginal cost maintenance costs cost 48 If a business delivers its own products by its own transport, Standard load Actual load Estimated load Budgeted load the cost per tonne, kilometers may be most misleading, for an article may have a bulk which is twice that of the other, though of the same weight. In such a case……is selected as the unit. 49 Service costing helps an organization in ascertaining Inter-departmental Benchmarking Tracking and All of the above service prices processes / operations controlling the excess cost 50 In service costing profit / loss is ascertained by preparing Profit and loss A/c Production A/c Memorandum Operating cost sheet …….. Account 51 Service costing is …….. Costing technique Costing classification Costing method Cost absorption method 52 A lorry capable of carrying 5 tonnes of goods normally carries 2,70,000 tonnes km 3,00,000 tonnes km 3,30,000 tonnes 3,40,000 tonnes km 80% of the load on the outward journey and 40% of the load km on inward journey. The journey is 300 km. for one side. It takes two days to complete the return trip. In a year of 300 days compute the tonnes km. 53 In relation to operating costing which of the following cannot Depreciation Manager’s salary Diesel and oil All of the above be classified as standing charges? 54 Operating costing is applicable to Transport companies Banking companies Manufacturing Marketing companies companie s 55 The unit of cost for hospitals is per bed per km per toon per unit 56 The unit of cost for Goods transport companies is per unit per Ton km per pa ssenger km per ton 57 Garage Rent is Fixed cost variable cost semivariable cost Flexible Cost 58 Cost of petrol is Fixed cost running cost semi variable cost Flexible Cost 59 Overhauling is classified as fixed cost semifixed cost maint enance cost marginal cost 60 The object of hotel costing is to find out cost per visitor per room per bed per table 61 Petrol consumption is 12 kms per liter of petrol costing Rs. 400 Rs. 10,000 Rs. 3 ,000 Rs. 10,400 Rs.30 per liter. A taxi runs 4,000 kms per month. The cost of petrol is _________