Cost and Management Accounting Multiple Choice Questions#3



NOTE: Attempt all Questions to see the Result at the bottom of this page.


  1. 1)

    If, Sales = $ 800,000 applied Markup = 25% of cost What would be the value of Gross profit? Select correct option:


    • A) $ 200,000
    • B) $ 160,000
    • C) $ 480,000
    • D) $ 640,000

  2. 2)

    The supervisor salary is treated as:


    • A) Direct labor cost
    • B) Indirect labor cost
    • C) Conversion cost
    • D) None of the given options

  3. 3)

    Which of the following is considered as basic systems of remunerating labor? Select correct option:


    • A) Time rate system
    • B) Piece rate system
    • C) Halsey Premium plan
    • D) Both time rate and piece rate system

  4. 4)

    While calculating the EOQ, number of orders is calculated by:


    • A) Multiplying the required units with cost per order
    • B) Dividing required unit by ordered quantity
    • C) Multiplying the required units with ordered quantity
    • D) Multiplying the ordered quantity with cost per order

  5. 5)

    An organistation sold units 4000 and have closing finished goods 3500 units and opening finished goods units were 1000.The quantity of unit produced would be:


    • A) 7500 units
    • B) 6500 units
    • C) 4500 units
    • D) 8500 units

  6. 6)

    Under/Over applied FOH cost can be adjusted in which of the following:


    • A) Entire Production
    • B) Cost of Good sold
    • C) Net Profit
    • D) All of given options

  7. 7)

    In furniture manufacturing use of nail, pins, glue, and polish which use to increase its esteem value that cost is treated as:


    • A) Direct material cost
    • B) Indirect material cost
    • C) FOH cost
    • D) Prime cost

  8. 8)

    If, Gross profit = $ 40,000 GP Margin = 25% of sales what will be the value of cost of goods sold?


    • A) $ 160,000
    • B) $ 120,000
    • C) $ 40,000
    • D) Can not be determined

  9. 9)

    A cost unit is


    • A) The cost per hour of operating a machine
    • B) The cost per unit of electricity consumed
    • C) A unit of product or services in relation to which costs are ascertained
    • D) A measure of work output in a standard

  10. 10)

    The cost of electricity bill of the factory is treated


    • A) Fixed cost
    • B) Variable cost
    • C) Step cost
    • D) Semi variable cost