For all types of institutional and university exams we have compiled MCQs on Cost Accounting. If you are searching for MCQ questions with answers on Cost Accounting or if you are preparing for competitive exam or an interview you have reached the page. Please read and practice top objective MCQs on Cost Accounting.
1. The main objective of cost accounting is to provide information to the management for
(a) planring
(c) policy-making
(b) decision-making
(d) None of these
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Ans: b
2. Total costs of direct material, Jabour and expenses are included in
(a) distribution cost
(c) selling cost
(b) prime cost
(d) development cost
View Answer
Ans: b
3. The ascertainment of costs after they had been incurred is known as
(a) differential costing
(c) historical costing
(b) replacement costing
(d) predetermined costing
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Ans: c
4. …….. is a technique of cost control.
(a) Marginal conting
(c) Job costing is a technique of cost control.
(b) Standard costing
(d) Contract costinig
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Ans: b
5. A cost, in which payment is made to a factor of production is referred to as
(a) opportunity cost
(c) absolute cost
(b) imputed cost
(d) out of pocket cost
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Ans: d
6. Cost centre comprising of a person or a group of persons is referred to as
(a) operation oost centre
(c) service cost centre
(b) functional cost ceritre
(d) personal cost centre
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Ans: d
7. A cycle manufacturing company will generally use the ….. method of costing.
(a) job costing
(b) multiple costing
(c) unit costing
(d) process costing
View Answer
Ans: b
8. The process of distributing an item of cost over several cost centres is known as
(a) cost absorption
(c) cost allocation
(b) cost apportionment
(d) None of these
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Ans: b
9. Interest on capital, payment for which is not made, is an example of
(a) Imputed cost
(c) replacement cost
(b) sunk cost
(d) opportunity cost
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Ans: a
10. ……method of costing will be suitable for oil refineries.
(a) Operation costin
(c) Job costing
(b) Process costing
(d) Batch costing
View Answer
Ans: b