Question 1

Process costing is also known as…......................costing.

Accepted Answer

A)  continuous
B)  batch
C)  multiple
D)  job A

Question 2

costing is a type or technique of costing.

Accepted Answer

A)  marginal
B)  batch
C)  multiple
D)  job A

Question 3

Cost accounting provides data for managerial…………….

Accepted Answer

A)  decision making
B)  recruitment
C)  retrenchment
D)  none of the above. A

Question 4

Average cost method of valuing material issues is suitable when………….

Accepted Answer

A)  prices rise
B)  prices fall
C)  prices fluctuate considerably
D)  none of these

Question 5

Material abstract is also known as ………………

Accepted Answer

A)  material issue analysis sheet
B)  bill of materials
C)  stores ledger
D)  none of the above

Question 6

………costing is used in transport undertakings.

Accepted Answer

A)  process
B)  service
C)  multiple
D)  job

Question 7

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

Accepted Answer

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

Question 8

Specific price method of valuing material issue is used when………….

Accepted Answer

A)  materials are purchased for specific job or work order
B)  materials are subject to natural wastage
C)  prices fluctuate
D)  none of these

Question 9

Administration expenses are mostly……………….

Accepted Answer

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

Question 10

Sunk costs are.............................for decision-making

Accepted Answer

A)  irrelevant
B)  relevant
C)  useful
D)  none of these.

Question 11

The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….

Accepted Answer

A)  key
B)  lock
C)  house
D)  none of these

Question 12

.....................…………is the smallest segment of activity or area or responsibility for which costs are accumulated.

Accepted Answer

A)  cost object
B)  cost centre
C)  cost driver
D)  none of the above

Question 13

Cost Accountancy is the science, art and ……………….of a costaccountant.

Accepted Answer

A)  practice
B)  exercise
C)  hard work
D)  effort

Question 14

……….costing is applicable to printers.

Accepted Answer

A)  process
B)  batch
C)  multiple
D)  job

Question 15

Market price method is considered to be the best method when…………..

Accepted Answer

A)  quotations have to be sent
B)  prices fluctuate
C)  materials are subject to natural wastage
D)  none of these

Exam 1: Exploring the World of Cost Accounting

Process costing is also known as…......................costing.