Deck 1: Exploring the World of Cost Accounting

Question 1

……….costing is applicable to printers.

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

Answer 1

job

Question 2

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

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

Answer 2

continuous

Question 3

costing is a type or technique of costing.

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

Answer 3

marginal

Question 4

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

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

Question 5

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

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

Question 6

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

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

Question 7

………costing is used in transport undertakings.

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

Question 8

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

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

Question 9

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

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

Question 10

Administration expenses are mostly……………….

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

Question 11

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

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

Question 12

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

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

Question 13

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

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

Question 14

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

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 15

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

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