(A) Unfavorable variance
(B) Favorable variance
(C) Normal variance
(D) Budgeted variance
Tag: Cost accounting Mcqs
The main purpose of cost accounting is to:
(A) Maximize profits ; (b) Help in inventory valuation
(B) Provide information to management for decision making
(C) Help in inventory valuation
(D) Aid in the fixation of selling price
Loss by fire is an example of:
(A) Normal Loss
(B) Abnormal Loss
(C) Incremental Loss
(D) Cannot be determined
Where__ is equal, that point is called Economic order quantity?
(A) Ordering cost
(B) Carrying cost
(C) Ordering and carrying cost
(D) Per unit order cost
In a repeated distribution method:
(A) Each service department in turn does not re-allocate its costs to all departments
(B) Each service department in turn and re-allocates its costs to all departments
(C) Each service department in turn and allocates its costs to all departments
(D) Only one service department in turn and re-allocates its costs to all departments.
The FIFO assumption of cost flow when applied in a period of rising prices:
(A) Overstates profit and closing stock
(B) Overstates profit and understates closing stock
(C) Overstates profit and shows closing stock at current prices
(D) Understates profit and overstates closing stock
In case of rise in price levels, the most suitable method for valuing materials issued is:
(A) LIFO
(B) FIFO
(C) Simple average
(D) Weighted average
Average price methods of pricing materials issues are derived from cost prices. They include the following except:
(A) Simple average
(B) Base stock
(C) Weighted average
(D) Moving average