Home » MCQs » Managerial Accounting Multiple Choice Questions#16

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1 Which of the following is an example of financial charges or expenses?
Salary expense
Selling expense
Interest on bank loan expense
Demurrage expense
2 Which of the following organizations is more likely to use ABC or Activity Based Costing?
Manufacturing organization
Service organization
None of them
3 XYZ company has made a profit of $100 using marginal costing. Opening stock and ending stock of XYZ Company are 10 units and 20 units respectively. The fixed manufacturing overhead absorption rate is $2 per unit. What will be the profit under absorption costing method / system?
4 Economic batch quantity or EBQ is employed to:
Minimize average costs in a given batch
Minimize marginal costs in a given batch
Minimize carrying costs in a given batch
Minimize order cost in a given batch
5 Which of the following industry is most likely to use process costing system?
Aircraft manufacturing
Space satellite production
Building construction
Paint manufacturing
6 Which of the following costing systems assigns manufacturing as well as non-manufacturing costs to products?
Activity-Based costing or ABC
Marginal costing
Traditional costing
Absorption costing
7 Which of the following is an inventory management system wherein goods are purchased at time when they are required?
Just In Case or JIC
Just In Time or JIT
Weighted average costing or WEC
All of the above
8 Which of the following is the most important objective of standard costing?
Consistency of production
Exercise of control procedures through variance analysis
Consistency of unit cost with the allocation of predetermined manufacturing costs
Significant reduction in the deviance of production costs
9 Sales – marginal cost of sales is equal to:
Cost of goods sold
Gross profit
Net marginal sales
Contribution margin
10 Cost accounting is to aid external users and financial accounting is meant for internal users of financial information
The above-mentioned statement is True
The above-mentioned statement is False

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