Cost & Work Accounting I

Multiple Choice Questions 55 Pages

Savitribai Phule Pune University

Bachelors in commerce

Contributed by

Prajwal Hallale

Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

CHAPTER 1: BASIC OF COST ACCOUNTING

1]………………does not deal with the accumulation, classification, analysis,
allocation, summarization, interpretation, reporting and control of current and
perspective costs.
A] Cost Accounting
B] Financial Accounting
C] Cost Accountancy
D] Practice

2] The amount of expenditure incurred on, or attributable to, a specified thing or
an activity or cost unit is known as .
A] Product
B] Cost
C] Batch
D] Financial Accounting

3] The aggregate amount of all the items of expenses paid or payable for the
particular product or service is called as .
A] Direct cost
B] Committed cost
C] Total Cost
D] Marginal cost

4]…………………cost represents the increase or decrease in total cost which occurs
with change in output.
A] Conversion cost
B] Marginal cost
Page 1
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

C] Explicit cost
D] Method

5] The expenses which can be directly charged to jobs, products, processes, cost
centers or cost units is termed as .
A] Direct Cost
B] Indirect Cost
C] Committed Cost
D] Reduction of cost

6] The Technique and ……………….of ascertaining the cost is known as Costing.
A] Batch
B] Method
C] Process
D] Batch costing

7]……………… is applied where production is carried out as per specific order and
customer specifications.
A] Batch costing
B] Job costing
C] Contract costing
D] Fixed expense

8] Marginal costing is also known as……………….costing
A] Variable
B] Semi-variable
C] Fixed
D] Historical costing
Page 2
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

9]………………..is the system of costing under which costs are determined after they
have been incurred.
A] Uniform costing
B] Historical costing
C] Standard costing
D] Cost Accounting

10] The branch of accounting dealing with the classification, recording, allocation,
summarization and reporting of current and prospective costs is known as .
A] Cost Accountancy
B] Costing
C] Cost Accounting
D] Advantages

11] The term………………….is comprehensively used to include various aspects such
as costing, cost accounting, cost control, cost audit and budgetary control.
A] Cost Accountancy
B] Costing
C] Cost Accounting
D] Inventory control

12]………………is concerned with ascertainment of cost.
A] Cost Accountancy
B] Costing
C] Cost Accounting
D] Management control

Page 3
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

13]………………….is concerned with accounting and recording of costs.
A] Cost Accountancy
B] Costing
C] Cost Accounting
D] Ascertainment of cost

14]………………..is concerned with formulation and / or application of principles,
methods and techniques of costing.
A] Cost Accountancy
B] Costing
C] Cost Accounting
D] Calculation of cost

15] The evolution of cost accounting took place because of ……………………of
financial accounting.
A] Advantages
B] Limitations
C] Merits
D] Management control

16]……………………helps the management to eliminate inefficiencies caused by
material wastage, use of obsolete machinery, improper planning etc.
A] Financial Accounting
B] Cost Accounting
C] Environmental Accounting
D] Management control

Page 4
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

17]………………..covers accounts of whole business relating to all commercial
transactions.
A] Cost Accounting
B] Financial Accounting
C] Environmental Accounting
D] Reduction of cost

18] A unit of quantity of product, service or time, in relation to which cost may be
ascertained or expressed is known as .
A] Cost Centre
B] Cost Sheet
C] Cost Unit

19] A location, person or item of equipment for which costs may be ascertained
and used for the purposes of cost control is known as .
A] Cost Centre
B] Cost Sheet
C] Cost Unit
D] both (a) and (b)

20] The cost unit for the Gas Industry is
A] Per gallon
B] Per tonne
C] Cubic Meter
D] Calculation of cost

21. Costing is a technique of……….
A] Inventory control
Page 5
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

B] Management control
C] Ascertainment of cost
D] Calculation of cost

22. Cost accounting has been developed because of………..of financial accounting.
A] Limitations
B] Expenditure
C] Statutory requirements
D] both (a) and (b)

23. Cost accountancy is the science, art and of cost accountant.
A] Profession
B] Management
C] Administration
D] Practice

24. In automobile industry cost unit is…………
A] Number
B] Automobile quality
C] Number of automobile industry
D] Either (a) or (c)

25. Cost unit in a college may be…………
A] teacher
B] Non teacher staff
C] Student
D] Number of departments

Page 6
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

26………..costing is suitable for mines, quarries, cement works etc.
A] Process
B] Contract
C] Batch
D] Operation

27………..is an extension of job costing.
A] Process costing
B] Batch costing
C] Contract costing
D] Operation costing

28. When job is very big and spread over long periods of time the method of
costing adopted is
A] Process
B] Job
C] Contract
D] Operation

29. Continuous costing is also called
A] Operation costing
B] Process costing
C] Batch costing
D] Contract costing

30. The methods of job evaluation include:
A] Grading
B] Ranking
Page 7
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

C] Points value
D] All of the above

31. Cost accounting is based on………..figures.
A] Approximated
B] Estimated
C] Historical
D] Either (a) or (c)

32…………..costing is used in transport undertaking.
A] Operating
B] Standard
C] Marginal
D] Service

33. In………….costing the cost of a group of products is ascertained.
A] Process
B] Job
C] Batch
D] Service

34. The total of all direct expenses is known as
A] Total cost
B] Overhead
C] Prime cost
D] Work cost

Page 8
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

35.An opportunity cost is a………..
A] Direct expense
B] Indirect expense
C] Variable expense
D] Fixed expense

ANSWERS: -

1] Financial Accounting
2] Cost
3] Total Cost
4] Marginal Cost
5] Direct Cost
6] Process
7] Job costing
8] Variable
9] Historical costing
10] Cost Accounting
11] Cost Accountancy
12] Costing
13] Cost Accounting
14] Cost Accountancy
15] Limitations
16] Cost Accounting
17] Financial Accounting
18] Cost Unit
19] Cost Centre
20] Cubic Meter
Page 9
Dnyansagar Arts And Commerce College, Balewadi, Pune – 45

Subject- Cost & Work Accounting I 2013 pattern Sub.code- 206 Class: S. Y.B.com
MULTIPLE CHOICE QUESTIONS

PROF. Shinde.P.S. www.dacc.edu.in

21] Inventory control
22] Expenditure
23] Practice
24] Automobile quality
25] Student
26] Operations
27] Batch costing
28] Contract
29] Process costing
30] All of the above
31] Estimated
32] Service
33] Batch
34] Prime Cost
35] Direct Expenses.

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Cost & Work Accounting I

Cost & Work Accounting I

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