MCQ Cost Sheet

Cost Sheet MCQ
1. Cost accounting differs from financial accounting in respect of
a. Ascertain cost
b. Recording of cost
c. Reporting of cost
d. Control of cost
2. Cost centres are created for

a. Segregating costs into fixed and variable
b. Control and fixing responsibility
c. Making decisions
d. Ascertaining profit
3. Variable cost change ___ with change in output.

a. Proportionality
b. Industry
c. Inversely
d. Indirect
4. A product cost estimate derived from a competitive market price is called as

a. Target cost
b. Periodic cost
c. Sunk cost
d. Multiple cost
5. Imputed cost is a
a. Notional cost
b. Real cost
c. Abnormal cost
d. Variable cost
6. Warehouse rent is a part of
a. Prime cost
b. Distribution overhead
c. Selling overhead
d. Factory overhead
7. LIFO stands for

a. Loss in first out
b. Last in first out
c. Last in fast out
d. Last in first output
8. Replacement price method is

a. The current purchase price of material is charged on the issues
b. The current market price of material is charged on the issues
c. The old market price of material is charged on the issues
d. The cost price of the material is charged on the issues
9. Small tools purchased are

a. Charged to overhead expenses at the time of purchase
b. Charged to machinery account
c. Charged to jobs during the period of purchase
d. Charged to costing Profit and Loss account
10. Which of the following statements regarding techniques of inventory

control are correct?
a. Fixation of selling price with good profit
b. Establishment of inventory budgets
c. Establishment of inventory sales
d. Fixation of profit with high return
11. Which of the following cost is also known as overhead cost or on cost:
a. Cost of direct labour
b. Cost of indirect labour
c. Direct expenses
d. Indirect expenses
12. Which of the following calculate the actual cost of product:

a. Cost estimation
b. Costing
c. Both a and b
d. None of these
13. Costing is specialized branch of accounting which deals with:

a. Classification, recording, allocation, and control of asset
b. Classification, processing, allocation and directing
c. Classification, recording, planning and control of asset
d. Classification, recording, allocation and directing
14. In cinema halls, composite cost unit is ________________:

a. A seat per show
b. Cost of screening
c. Salary of staff
d. Rent of cinema hall
15. Classification of cost into factory cost, administrative cost, selling &
distribution cost and research and development cost is done on the basis of
________.
a. Elements
b. Functions
c. Time
16. The cost that remains unchanged inspite of change in volume of
production is known as _______.
a. Fixed cost
b. Variable cost
c. Semi-variable cost
17. _______ cost is partly variable and partly fixed.

a. Fixed cost
b. Semi-variable cost
c. Variable cost
18. _______ is a statement showing cost of production of a particular

product.
a. Tender
b. Quotation
c. Cost sheet
19. The total of works cost and administrative overheads is known as

________.
a. Prime cost
b. Cost of Production
c. Works cost
20. ______ cost is the cost of commodities supplied to an undertaking.

a. Material
b. Labour
c. Expenses
21. Direct Labour Cost is also known as ________.

a. Indirect Labour
b. Indirect Wages
c. Direct Wages
22. The expenses which cannot be directly identified with a particular
unit or cost centre is known as _______.
a. Indirect Labour
b. Indirect material
c. Indirect expenses
23. ______ expenses are also called as chargeable expenses.

a. Partly direct and partly indirect
b. Indirect
c. Direct
24. The aggregate of indirect material, indirect labour and indirect

expenses in termed as _____.
a. Material Cost
b. Overheads
c. Labour Cost
25. The overhead cost incurred from the stage of procurement of raw
material till the stage of production of finished goods is known as ______.
a. Office overheads
b. Factory overheads
c. Selling overheads
26. Office overheads are also known as _____ overheads.

a. Factory
b. Selling
c. Administrative
27. Material, Labour and Expenses are the three important _______ of
cost.
a. Methods
b. Elements
c. Techniques
28. The cost of activities relating to create and stimulate demand for
company’s products and to secure orders is known as ______ overheads.
a. Administrative
b. Factory
c. Selling and Distribution
29. Non-cost items are those which are _______ from the cost.
a. Excluded
b. Included
c. Partly included
30. ________ is the total of prime cost and factory overheads.

a. Cost of production
b. Works cost
c. Cost of material consumed
31. Consumables are treated as _________ overheads in cost sheet.

a. Factory
b. Office
32. If the total cost of a product is Rs.25, 000/- and the sales figure is
47,000/-, then the product is in ______ by Rs.22, 000/-.
a. Loss
b. Profit
c. Neither profit nor loss
33. In cost sheet the expenses on discount allowed are considered under
________ overheads.
a. Factory
b. Office
34. _______ cost is predetermined cost for each element of cost.
a. Marginal
b. Historical
c. Standard
35. Calculate the cost of material consumed-

Opening stock of material Rs.12000, Material purchased Rs.60,000 Frieght &
carriage paid on material purchased Rs.100, Defective material returned to
supplier at cost Rs.1,200;Closing stock of material Rs.40,000, Material sold
Rs.2,000(cost price Rs.1,500)
a. 29,500
b. 30,000
c. 29,700
d. 29,400
36. Find out the amount of material consumed from the following
information :
Total cost of production Rs.500, Works cost is 80% of cost of production,
Work oncost is 150% of office oncost, Material consumed is 25% of wages.
a. 80
b. 100
c. 50
d. 60
37. Calculate the amount of material consumed –
Opening stock of raw material Rs.1,00,000
Purchase of Raw Material Rs.3,00,000
Closing stock of raw material Rs.10,000
Carriage inward Rs.10,000
Abnormal wastage of materials Rs.5,000
Return of defective materials Rs.15,000
a. 3,80,000
b. 3,50,000
c. 3,40,000
d. 3,60,000
38. From the following information, find out the amount of material
consumed
Opening stock of material Rs.20,000
Purchase of raw material Rs.50,000
Carriage of purchase of raw material Rs.1,000
Return of defective material Rs.500
Sale of material cost Rs.5,000
Closing stock of raw material Rs.11,000
a. 54,800
b. 54,500
c. 55,500
d. 55,800
39. Calculate the factory cost-

Direct materials Rs.29,400, Direct wages Rs.10,600, Direct expenses
Rs.2,000;Indirect material Rs.1,000; Indirect wages Rs.3,000; Factory
expenses Rs.8,000;Work in progress: Opening Rs.4,000, Closing Rs.5,000
a. 53,000
b. 55,500
c. 53,500
d. 55,000
40. Calculate Prime cost and factory cost:
Direct materials Rs.10,000;Direct labour Rs.8,000;Factory overhead
Rs.6,000; Work in progress(valued at Prime Cost): Opening Rs.2,000, Closing
Rs.5,000
a. 14,000 , 21,000
b. 18,000 , 20,000
c. 15,000 , 23,000
d. 15,000 , 21,000
41. Cost price Rs.18,000; Profit 10% on sales.

Calculate the profit and sale price.
a. 2,000 , 20,000
b. 2,000 , 22,000
c. 3,000 , 20,000
d. 1,000 , 22,000
42. Calculate Prime cost

Materials purchased Rs.10,000; Materials consumed Rs.8,000; Materials
returned to store Rs.2,000; Direct wages Rs.5,000; Direct expenses
Rs.7,000; Foreman’s salary Rs.5,000
a. 25,000
b. 21,000
c. 20,000
d. 22,000
43. Calculate the number of units sold-
Opening stock of finished goods 15,000 units
Closing stock of finished goods 20,000 units
Units produced 80,000 units
Purchase of finished goods 5,000 units
a. 40,000 units
b. 80,000 units
c. 50,000 units
d. 10,000 units
44. Calculate the amount of sales if

Closing stock of finished goods Rs.2,00,000
Opening stock of finished goods Rs.1,40,000
Cost of production Rs.9,60,000
Selling expenses Rs.90,000
Profit 20% on sales
a. 12,36,500
b. 11,28,500
c. 12,37,500
d. 11,55,500
45. Calculate the cost of goods sold:

Cost of production Rs.1,20,000;
Stock of finished goods:
Opening Rs.20,000
Closing Rs.10,000
Work in progress:
Opening Rs.7,000
Closing Rs.13,000
a. 1,20,000
b. 1,10,000
c. 1,50,000
d. 1,30,000
46. Calculate the profit-
Cost of production per unit Rs.60
Units produced 60,000 units
Units sold 48,000 units
Profit 25% on sales
a. 9,20,000
b. 9,60,000
c. 9.40,000
d. 9,50,000
47. Calculate the profit-

Cost of production per unit Rs.45
Units produced 30,000
Units sold 27,000
Selling price per unit Rs.52
Selling expenses per unit Rs.2
Also prepare statement of cost.
a. 1,20,000
b. 1,45,000
c. 1,30,000
d. 1,35,000
48. Calculate works overhead from the following information
Opening stock of raw materials Rs.5,000
Purchases Rs.24,000
Expenses on purchase Rs.2,000
Direct wages Rs.18,000
Direct expenses Rs.3,000
Closing stock of raw materials Rs.7,000
Manufacturing cost Rs.80,000
a. 35,000
b. 55,000
c. 45,000
d. 75,000
49. The accounts of ABC Ltd. Shopw the following informations for the
yerar ending on 31st March 2020:
Materials used Rs.70,000
Direct wages Rs.54,000
Works overheads Rs.16,200
Establishment and general charges Rs.11,216
Calculate the total cost of manufacture.
a. 1,52,416
b. 1,51,426
c. 1,51,416
d. 1,52,426

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Cost Sheet MCQ

1. Cost accounting differs from financial accounting in respect of

2. Cost centres are created for

3. Variable cost change ___ with change in output.

4. A product cost estimate derived from a competitive market price is called as

7. LIFO stands for

8. Replacement price method is

9. Small tools purchased are

10. Which of the following statements regarding techniques of inventory

12. Which of the following calculate the actual cost of product:

13. Costing is specialized branch of accounting which deals with:

14. In cinema halls, composite cost unit is ________________:

17. _______ cost is partly variable and partly fixed.

18. _______ is a statement showing cost of production of a particular

19. The total of works cost and administrative overheads is known as

20. ______ cost is the cost of commodities supplied to an undertaking.

21. Direct Labour Cost is also known as ________.

23. ______ expenses are also called as chargeable expenses.

24. The aggregate of indirect material, indirect labour and indirect

26. Office overheads are also known as _____ overheads.

30. ________ is the total of prime cost and factory overheads.

31. Consumables are treated as _________ overheads in cost sheet.

35. Calculate the cost of material consumed-

39. Calculate the factory cost-

41. Cost price Rs.18,000; Profit 10% on sales.

42. Calculate Prime cost

44. Calculate the amount of sales if

45. Calculate the cost of goods sold:

47. Calculate the profit-

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