Accounting Practice MCQ Page 4

Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1086   One of the most important tools in cost planning is
  1. direct cost
  2. budget
  3. cost sheet
  4. marginal costing
Question: 1088   The purpose of cost accounting is to provide information for
  1. preparing costing P& L A/c
  2. cost control
  3. locating factors leading to wastages and losses
  4. assessing the profitability and financial position of the firm
Question: 1089   Fixed cost per unit increases when
  1. variable cost per unit increases
  2. variable cost per unit decreases
  3. Production volume increases
  4. production volume decreases
Question: 1091   Variable cost per unit
  1. varies when output varies
  2. remains constant
  3. increases when output increases
  4. decreases when output decreases
Question: 1093   Increase in total variable cost is due to
  1. increase in fixed cost
  2. increase in sales
  3. increase in production
  4. increase in total cost
Question: 1095   An example of variable cost is
  1. property taxes
  2. interest on capital
  3. direct material cost
  4. depreciation of machinery
Question: 1100   An example of fixed cost is
  1. direct material cost
  2. works manager,s salary
  3. depreciation of machinery
  4. chargeable expenses
Question: 1102   Cost accounting concepts include all of following except
  1. Planning
  2. controlling
  3. profit sharing
  4. product costing
Question: 1104   The three major elements of product costs are all but
  1. direct materials
  2. Factory overhead
  3. direct labour
  4. indirect labour
Question: 1111   Cost of goods produced includes
  1. production cost and finished goods inventory
  2. production cost and work-in-progress
  3. production cost, work-in-progress and finished goods inventory
Question: 1117   Cost of goods sold includes
  1. cost of production and work-in-progress
  2. cost of production and finished goods inventory
  3. cost production, work-in-progress and finished goods invetory
Question: 1123   An overstatement of work-in-progress at the end of a period will
  1. overstate cost of goods produced
  2. understate current assets
  3. understate gross profit
  4. overstate net profit