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Commerce
Cost Accounting
Quiz 1
Solution
Q.1.
A bill of material serves the purpose of…………………
Material requisition
stores ledger
material issue analysis sheet
none of these
Q.2.
Which one of the following items would NOT be included in a cash budget?
dividend payments
capital repayments of loans
depreciation charges
proceeds of sale of fixed assets
Q.3.
Direct expenses are also called ________.
major expenses
chargeable expenses
overhead expenses
sundry expenses
Q.4.
The cost which is to be incurred even when a business unit is closed is a _____.
imputed cost
historical cost
sunk cost
shutdown cost
Q.5.
Cost classification can be done in ________.
two ways
three ways
four ways
several ways
Q.6.
Process costing is suitable for ________.
hospitals
oil refing firms
transport firms
brick laying firms
Q.7.
Basic objective of cost accounting is ________
tax compliance.
financial audit.
cost ascertainment.
profit analysis.
Q.8.
……………..is an example of short-term budget
Cash budget
Capital expenditure budget
Material budget
Both a & c
Q.9.
……………..is an example of long-term budget
Cash budget
Capital expenditure budget
Research and development budget
Both b & c
Q.10.
Labour rate variance is computed by multiplying the
Standard labour rate with the difference between standard labour hours and actual labour hours
Actual labour hours with the difference between standard labour hours and actual labour hours
Actual labour rate with the difference between standard labour rate and actual labour hours.
None of the above
Q.11.
Volume variance arises because of :
Increase in overhead rate per hour
Decrease in overhead rate per hour
Increase or decrease in actual output as compared to the budgeted output.
Difference in budgeted overheads and actual overheads.
Q.12.
An unfavourable material usage arises because of:
Price increase in raw materials
Price decrease in raw mateials
Less than anticipated normal wastage in the manufacturing process
More than anticipated normal wastage in the manufacturing process
Q.13.
The type of standard best suitable for cost control purpose is
Basic standard
Ideal standard
Normal standard
Expected standard
Q.14.
An unfavourable material price variance occurs because of:
Price increase in raw materials
Price decrease in raw materials
Less than anticipated normal wastage in the manufacturing process
More than anticipated normal wastage in the manufacturing process
Q.15.
A favourable variance will arise when capital revenues are………..thanexpected.
More
Less
Lesser
None of the above
Q.16.
Volume Variance =
Standard rate (Actual output-budgeted output)
Actual output x standard rate-budgeted fixed overheads
Standard rate per hour(standard hours produced-actual hours)
All of the above
Q.17.
Total Labour cost variance =
Standard cost of labour - actual cost of labour
Standard rate(standard time for actual output-actual time worked)
Standard rate (standard time for actual output- actual time paid for)
Actual time taken (standard rate-actual rate)
Q.18.
Material mix variance = standard cost of standard mix - ………………..
Actual cost of actual mix
Actual cost of standard mix
Standard cost of actual mix
Standard cost of budgeted mix
Q.19.
Material usage variance = standard price(……………….)
Standard usage-actual usage
Standard unit price-actual unit price
Standard quantity
Actual quantity
Q.20.
Material Price Variance = Actual Usage (……………)
Standard price
Standard unit price-actual unit price
Actual price
Standard usage
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