Question 1

……….costing is applicable to printers.
A)process
B)batch
C)multiple
D)job

Accepted Answer

Job costing is applicable to printers because it allows for the costing of specific jobs or orders, which is suitable for businesses like printing where each customer's order can be unique.

Question 2

Process costing is also known as…......................costing.
A)continuous
B)batch
C)multiple
D)job

Accepted Answer

Process costing is also known as continuous costing because it is used in industries where production is continuous and identical products are produced.

Question 3

costing is a type or technique of costing.
A)marginal
B)batch
C)multiple
D)job

Accepted Answer

A

Question 4

Cost Accountancy is the science, art and ……………….of a costaccountant.
A)practice
B)exercise
C)hard work
D)effort

Accepted Answer

Cost Accountancy is often described as the science, art, and practice of a cost accountant, emphasizing the comprehensive approach and professional application in the field.

Question 5

The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….
A)key
B)lock
C)house
D)none of these

Accepted Answer

The ordinary trading account is a locked storehouse of most valuable information to which the cost system is the key, as it unlocks the valuable financial insights and data.

Question 6

Cost accounting provides data for managerial…………….
A)decision making
B)recruitment
C)retrenchment
D)none of the above.

Accepted Answer

Cost accounting primarily provides data for managerial decision making, including budgeting, pricing, and cost control strategies.

Question 7

………costing is used in transport undertakings.
A)process
B)service
C)multiple
D)job

Accepted Answer

Service costing is used in transport undertakings because it involves providing services rather than manufacturing goods, and this costing method is suitable for organizations that provide services.

Question 8

Sunk costs are.............................for decision-making
A)irrelevant
B)relevant
C)useful
D)none of these.

Accepted Answer

Sunk costs are costs that have already been incurred and cannot be recovered. They should not influence current or future business decisions since they remain the same regardless of the outcome of a decision.

Question 9

Fixed cost ...................................in the same proportion in which output changes.
A)does not change
B)changes
C)increases
D)none of these.

Accepted Answer

Fixed costs do not change with the level of output. They remain constant regardless of the amount of goods or services produced.

Question 10

Administration expenses are mostly……………….
A)semi-variable
B)variable
C)fixed
D)none of these.

Accepted Answer

Administration expenses are mostly considered fixed because they do not typically vary with the level of production or sales volume. These expenses are incurred regardless of the company's operational activity level, such as salaries of administrative staff, office rent, and utilities.

Question 11

.....................…………is the smallest segment of activity or area or responsibility for which costs are accumulated.
A)cost object
B)cost centre
C)cost driver
D)none of the above

Accepted Answer

A cost centre is the smallest segment or area within an organization for which costs are accumulated. It is a specific location, person, or item of equipment (or group of these) for which costs are accumulated for the purpose of control. This definition aligns with the concept of a cost centre being a distinct part of an organization where direct and indirect costs are recorded and managed.

Question 12

Material abstract is also known as ………………
A)material issue analysis sheet
B)bill of materials
C)stores ledger
D)none of the above

Accepted Answer

Material abstract is also known as material issue analysis sheet.

Question 13

Average cost method of valuing material issues is suitable when………….
A)prices rise
B)prices fall
C)prices fluctuate considerably
D)none of these

Accepted Answer

The average cost method smooths out price fluctuations over time, making it suitable when prices fluctuate considerably, as it provides a more stable cost figure for inventory valuation and cost of goods sold calculation.

Question 14

Specific price method of valuing material issue is used when………….
A)materials are purchased for specific job or work order
B)materials are subject to natural wastage
C)prices fluctuate
D)none of these

Accepted Answer

The specific price method of valuing material issue is used when materials are purchased for a specific job or work order, as it allows for the direct assignment of costs to that job or order, reflecting the actual cost of materials used.

Question 15

Market price method is considered to be the best method when…………..
A)quotations have to be sent
B)prices fluctuate
C)materials are subject to natural wastage
D)none of these

Accepted Answer

The answer of Market price method is considered to be...

Quiz 1: Exploring the World of Cost Accounting

……….costing is applicable to printers.

Process costing is also known as…......................costing.

costing is a type or technique of costing.

Cost Accountancy is the science, art and ……………….of a costaccountant.

The ordinary trading account is a locked storehouse of most valuable information to which cost system is the……………….

Cost accounting provides data for managerial…………….

………costing is used in transport undertakings.

Sunk costs are.............................for decision-making

Fixed cost ...................................in the same proportion in which output changes.

Administration expenses are mostly……………….

.....................…………is the smallest segment of activity or area or responsibility for which costs are accumulated.

Material abstract is also known as ………………

Average cost method of valuing material issues is suitable when………….

Specific price method of valuing material issue is used when………….

Market price method is considered to be the best method when…………..