Accounting, Banking and Finance MCQs

Cost & Management Accounting

Quiz # 4, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

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  1. 1)

    A forecast set of final accounts is also known as:

    • A) Cash budget
    • B) Capital budget
    • C) Master budget
    • D) Sales budget

  2. 2)

    Increased cost of production due to high labor turnover is a result of which of the following factor?

    • A) Interruption of production
    • B) Coordination between new and old employee to produce more
    • C) Increased production due to newly motivated employees
    • D) Decrease losses as new employees will be more concerned towards output

  3. 3)

    Net Income before Interest and tax is also called:

    • A) Operating Income/Profit
    • B) Gross Profit
    • C) Marginal Income
    • D) Other Income

  4. 4)

    _______ is future cost that effects the current management decision.

    • A) Sunk Cost
    • B) Standard Cost
    • C) Relevant Cost
    • D) Irrelevant Cost

  5. 5)

    “Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of:

    • A) Overstocking
    • B) Under stocking
    • C) Replenishment of stock
    • D) Acquisition of stock

  6. 6)

    Which of the following would be considered to be an investment centre?

    • A) Managers have control over marketing
    • B) Management have a sales team
    • C) Management have a sales team and are given a credit control function
    • D) Managers can purchase capital assets and are given a credit control function

  7. 7)

    In cost Accounting, abnormal loss is charged to:

    • A) Factory overhead control account
    • B) Work in process account
    • C) Income Statement
    • D) Entire production

  8. 8)

    Direct material opening inventory plus net purchases is called

    • A) Material consumed
    • B) Material available for use
    • C) Total material purchsed
    • D) Material ending inventory

  9. 9)

    Opportunity cost is an example of which of the following?

    • A) Sunk Cost
    • B) Irrelevant Cost
    • C) Relevant Cost
    • D) Period Cost

  10. 10)

    __________ system applies when standardized goods are produced under a series of inter-connected operations.

    • A) Process costing
    • B) Job order costing
    • C) Standard costing
    • D) Indirect costing