Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Cost Accounting -15

1. ………………..is maintained to know how the worker’s time shown by the time card is spent on various jobs.

(A) Daily time sheets
(B) weekly time sheets
(C) job cards
(D) none of the above



2. In time wage system, wages are paid according to the……………….

(A) Production
(B) time
(C) both a & b
(D) none of these



3. Under piece rate system of wage payment, payment is made according to the…………………

(A) Quantity of work done
(B) time
(C) both a&b
(D) none of these



4. For a work order, standard time and time taken are 20 hours and 15 hours respectively. Time rate being Rs. 2 per hour, total wages payable under Rowan Premium Plan will be……………….

(A) 40
(B) 37.50
(C) 35
(D) none of these



5. Taylors differential piece rate system provides for higher rate to …….workers.

(A) Inefficient
(B) efficient
(C) both a & b
(D) lazy



6. …………………..is most suitable when quality of work is of prime importance.

(A) Piece rate system
(B) time wage system
(C) both a & b
(D) none of these



7. Formula of calculation of wages under Halsey Premium System is……

(A) R + %(S-T)R
(B) R x S x T
(C) S-T x T x R
(D) T x R+ % (S-T) R 


8. Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between……. of the standard output.

(A) 83% and 100%
(B) 100% and 120%
(C) 0% and 83%
(D) none of these



9. Under Merrick’s multiple piece rate system, 120% of the ordinary piece rate is given to workers whose level of performance is between……………….of the standard output.

(A) 83% and 100%
(B) 100% and 120%
(C) 0% and 83%
(D) none of these



10. Under Merrick’s multiple piece rate system, ordinary piece rate is given to workers whose level of performance is between……………….of the standard output.

(A) 0% and 100%
(B) 0% and 120%
(C) 0% and 83%
(D) none of these




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MCQs on Cost Accounting -14

1. ……………costs are partly fixed and partly variable in relation to output.

(A) Variable
(B) fixed
(C) Semi-variable
(D) both a & b



2. An opportunity cost is …………………..

(A) the advantage foregone
(B) the cost
(C) the income
(D) none of the above.



3. Works cost is a total of………………

(A) Indirect material, Indirect labour
(B) Direct material, direct labour, direct or chargeable expenses and works expenses
(C) Direct material, direct labour
(D) Indirect material, Indirect labour, Indirect expenses




4. An opportunity cost does not involve…………

(A) Cash outlays
(B) direct cost
(C) indirect cost
(D) none of the above



5. Variable costs change ……………………with change in output.

(A) Proportionately
(B) Inversely
(C) Disproportionately
(D) Sometimes



6. Fixed cost per unit …………………….with increase in output.

(A) decreases
(B) increases
(C) changes
(D) sometimes



7. Depreciation is…………………expenditure.

(A) fixed
(B) variable
(C) adjustable
(D) Semi-variable



8. Out of pocket costs involve payment to …………………

(A) Outsiders
(B) self
(C) employees
(D) none of the above



9. Added value is the change in…………………

(A) Market value
(B) cost
(C) income
(D) none of the above.



10. …………………. Accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

(A) Financial
(B) Cost
(C) both a & b
(D) none of these




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MCQs on Cost Accounting -13

1. Volume Variance =

(A) Standard rate (Actual output-budgeted output)
(B) Actual output x standard rate-budgeted fixed overheads
(C) Standard rate per hour(standard hours produced-actual hours)
(D) All of the above



2. A favourable variance will arise when capital revenues are………..than expected.

(A) Less
(B) More 
(C) Lesser
(D) None of the above



3. An unfavourable material price variance occurs because of:

(A) Price increase in raw materials
(B) Price decrease in raw materials
(C) Less than anticipated normal wastage in the manufacturing process
(D) More than anticipated normal wastage in the manufacturing process



4. The type of standard best suitable for cost control purpose is

(A) Basic standard
(B) Ideal standard
(C) Normal standard
(D) Expected standard



5. An unfavourable material usage arises because of:

(A) Price increase in raw materials
(B) Price decrease in raw mateials
(C) Less than anticipated normal wastage in the manufacturing process
(D) More than anticipated normal wastage in the manufacturing process



6. Volume variance arises because of :

(A) Increase in overhead rate per hour
(B) Decrease in overhead rate per hour
(C) Increase or decrease in actual output as compared to the budgeted output.
(D) Difference in budgeted overheads and actual overheads.



7. Labour rate variance is computed by multiplying the

(A) Standard labour rate with the difference between standard labour hours and actual labour hours
(B) Actual labour hours with the difference between standard labour hours and actual labour hours
(C) Actual labour rate with the difference between standard labour rate and actual labour hours.
(D) None of the above



8. ……………..is an example of long-term budget

(A) Cash budget
(B) Capital expenditure budget
(C) Research and development budget
(D) Both b & c



9. ……………..is an example of short-term budget

(A) Cash budget
(B) Capital expenditure budget
(C) Material budget
(D) Both a & c



10. The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are………………

(A) Capacity ratio, activity ratio
(B) Efficiency ratio, calendar ratio
(C) Both a & b
(D) None of the above




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MCQs on Cost Accounting -12

1. Efficiency Ratio=

(A) Number of actual working days in a period x 100
         Number of working days in the budget period
(B) Actual hours worked x 100
           Budgeted hours
(C) Standard hours for actual production x 100
                 Actual hours worked
(D) Standard hours for actual production x 100
               Budgeted standard hours


2. Activity Ratio =

(A) Number of actual working days in a period x 100
        Number of working days in the budget period
(B) Actual hours worked x 100
           Budgeted hours
(C) Standard hours for actual production x 100
            Actual hours worked
(D) Standard hours for actual production x 100
                Budgeted standard hours



3. ……………….is a summary of all function budgets in a Capsule form.

(A) Sales budget 
(B) Master Budget
(C) Performance budget
(D) Cash Budget



4. ……………..determines the priorities of functional budget.

(A) Principal Budget Factor
(B) Limiting Factor
(C) both a & b
(D) none of the above.



5. Cash Budget is a ……………….budget.

(A) Long term
(B) short term 
(C) very long term
(D) very short term



6. The primary difference between a fixed budget and a variable(flexible) budget is that a fixed budget:

(A) Includes only fixed costs, while a variable budget includes only variable costs.
(B) Is concerned only with future acquisitions of fixed assets, while a variable budget is concerned with expenses which vary with sales.
(C) Cannot be changed after the period begins, while a variable budget can be changed after the period begins.
(D) Is a plan for a single level of sales(or other measure of activity), while a variable budget consists of several plans, one for each of several levels of sales (or other measure of activity)



7. Sales budget is a

(A) Functional budget
(B) Master budget
(C) Expenditure budget
(D) none of these



8. In the case of plant, the limiting factor may be:

(A) Insufficient capacity
(B) shortage of experienced salesmen
(C) general shortage of power
(D) shortage of materials



9. The difference between fixed and variable cost has a special significance in the preparation of

(A) Flexible budget
(B) master budget
(C) cash budget
(D) sales budget



10. The budget that is prepared first of all is…………..

(A) Cash budget
(B) master budget
(C) budget for the key factor
(D) sales budget




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MCQs on Cost Accounting -11

1. The budget relating to ………….must be prepared first and the other budgets should be prepared in the light of that factor.

(A) Limiting factor
(B) materials
(C) labour
(D) production



2. …………………budget is the most important budget and it forms the basis on which all the other budgets are built up.

(A) Production
(B) material
(C) cash budget
(D) sales



3. ………………….budget may be classified into material cost budget, labour cost budget and overhead budget.

(A) Cost of Production
(B) purchase
(C) sales
(D) Cash



4. ……………….budget gives an estimate of the anticipated receipts and payment of cash during the budget period.

(A) Sales
(B) Production
(C) Cash
(D) Master



5. ……………….is the consolidated summary of the various functional budgets.

(A) Master Budget
(B) Sales budget
(C) Performance budget
(D) Cash Budget



6. …………………budget is designed to remain unchanged irrespective of the volume of output or turnover attained.

(A) Master
(B) Fixed
(C) Flexible
(D) all of these



7. …………………budget gives different budgeted costs for different levels of activity.

(A) Master
(B) Fixed
(C) Flexible
(D) all of these



8. …………………budget is the preparation of budget starting from a clean state.

(A) Performance
(B) Zero Base
(C) Cash
(D) none of these



9. Calendar Ratio =

(A) Number of actual working days in a period x 100
        Number of working days in the budget period
(B) Actual hours worked x 100
          Budgeted hours
(C) Standard hours for actual production x 100
            Actual hours worked
(D) Standard hours for actual production x 100
        Budgeted standard hours


10. Capacity Ratio =

(A) Number of actual working days in a period x 100
       Number of working days in the budget period
(B) Actual hours worked x 100
          Budgeted hours
(C) Standard hours for actual production x 100
          Actual hours worked
(D) Standard hours for actual production x 100
           Budgeted standard hours




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MCQs on Cost Accounting -10

1. Fixed cost …………………… in the same proportion in which output changes.

(A) does not change
(B) changes
(C) increases
(D) none of these.



2. Administration expenses are mostly……………….

(A) semi-variable
(B) variable
(C) fixed
(D) none of these.



3. Abnormal cost is …………………..

(A) Uncontrollable
(B) controllable
(C) fixed
(D) none of these



4. Cost of production is equal to ……………………

(A) works overhead plus administration overheads
(B) Prime cost plus Works cost
(C) prime cost plus works overhead
(D) Works cost plus Administration Overheads 



5. Variable cost increases with ………….in output.

(A) Increase
(B) decrease
(C) increase or decrease
(D) none of these.



6. ……………………….Accounting provides information for cost control.

(A) Financial
(B) Cost
(C) Human Resource
(D) none of these.



7. ………………………. 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



8. Cost centre and cost unit are……………………

(A) not the same
(B) the same
(C) not related
(D) none of these



9. Fixed cost per unit …………………… with rise in output and …………… with fall in output.

(A) Decreases, increases
(B) increases, decreases
(C) is constant, remains same
(D) none of the above



10. Period costs charged to……………….

(A) cost of production
(B) Products
(C) Period
(D) none of these




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