Prepare for JKSSB Exams: Top 30 Cost Accounting MCQs with Answers jkssb,faa"
August 28, 2023
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>Your success in JKSSB exams starts with solid preparation, and our MCQs are here to empower you with the confidence and expertise needed to achieve your goals. Elevate your performance and conquer the Accounting section of JKSSB exams using these valuable practice resources.Here is series of 30 mcqs on cost accounting
1. Cost accounting primarily focuses on:
a) Financial planning
b) Cost control and analysis
c) Tax calculation
d) Auditing
The correct answer is b) Cost control and analysis.
2. Which of the following is a fixed cost?
a) Direct materials cost
b) Direct labor cost
c) Rent expense
d) Variable manufacturing overhead
The correct answer is c) Rent expense.
3. Direct materials and direct labor are examples of:
a) Fixed costs
b) Variable costs
c) Mixed costs
d) Semi-variable costs
The correct answer is b) Variable costs.
4. What is the formula to calculate the break-even point in units?
a) Fixed costs / Selling price per unit
b) Selling price per unit / Variable cost per unit
c) Fixed costs / Contribution margin per unit
d) Variable cost per unit / Contribution margin per unit
The correct answer is c) Fixed costs / Contribution margin per unit.
5. Contribution margin is calculated as:
a) Sales revenue - Variable costs
b) Sales revenue - Fixed costs
c) Variable costs - Fixed costs
d) Fixed costs - Variable costs
The correct answer is a) Sales revenue - Variable costs.
6. Cost-volume-profit (CVP) analysis is useful for:
a) Determining product quality
b) Calculating income taxes
c) Analyzing the relationship between costs, volume, and profit
d) Allocating overhead costs
The correct answer is c) Analyzing the relationship between costs, volume, and profit.
7. Which of the following costs is not included in the calculation of the total manufacturing cost?
a) Direct materials cost
b) Direct labor cost
c) Factory rent
d) Factory utilities
The correct answer is c) Factory rent.
8. The difference between the actual sales and the break-even sales is known as:
a) Gross profit
b) Net profit
c) Margin of safety
d) Contribution margin
The correct answer is c) Margin of safety.
9. Job costing is commonly used in industries such as:
a) Retail
b) Healthcare
c) Utilities
d) Agriculture
The correct answer is b) Healthcare.
10. Which method allocates overhead based on the actual amount of the cost driver used?
a) Traditional costing
b) Activity-based costing (ABC)
c) Standard costing
d) Job costing
The correct answer is b) Activity-based costing (ABC).
11. Which cost represents the cost of producing one additional unit?
a) Sunk cost
b) Marginal cost
c) Opportunity cost
d) Differential cost
The correct answer is b) Marginal cost.
12. What is the formula for calculating the contribution margin ratio?
a) Contribution margin / Sales revenue
b) Sales revenue / Contribution margin
c) Contribution margin / Total variable costs
d) Total variable costs / Contribution margin
The correct answer is a) Contribution margin / Sales revenue.
13. Which type of cost changes in direct proportion to changes in the level of activity?
a) Fixed cost
b) Variable cost
c) Semi-variable cost
d) Mixed cost
The correct answer is b) Variable cost.
14. Cost allocation involves:
a) Reducing expenses to increase profit
b) Assigning costs to various cost objects
c) Combining fixed and variable costs
d) Calculating break-even point
The correct answer is b) Assigning costs to various cost objects.
15. A cost that has already been incurred and cannot be changed is called:
a) Opportunity cost
b) Sunk cost
c) Differential cost
d) Marginal cost
The correct answer is b) Sunk cost.
16. The formula for calculating the cost of goods sold (COGS) is:
a) Beginning inventory + Purchases - Ending inventory
b) Beginning inventory - Purchases + Ending inventory
c) Purchases - Beginning inventory - Ending inventory
d) Ending inventory + Purchases - Beginning inventory
The correct answer is a) Beginning inventory + Purchases - Ending inventory.
17. Which of the following is not a cost classification based on behavior?
a) Fixed costs
b) Variable costs
c) Mixed costs
d) Opportunity costs
The correct answer is d) Opportunity costs.
18. Which of the following is a direct cost?
a) Rent expense
b) Indirect labor cost
c) Advertising expenses
d) Direct materials cost
The correct answer is d) Direct materials cost.
19. The total cost incurred by producing one additional unit is called:
a) Sunk cost
b) Fixed cost
c) Marginal cost
d) Opportunity cost
The correct answer is c) Marginal cost.
20. Which method of cost allocation allocates costs based on the number of units produced?
a) Direct allocation
b) Step-down allocation
c) Activity-based allocation
d) Volume-based allocation
The correct answer is d) Volume-based allocation.
21. Which cost is incurred for the use of someone else's resources?
a) Implicit cost
b) Explicit cost
c) Opportunity cost
d) Sunk cost
The correct answer is c) Opportunity cost.
22. Which of the following is an example of a variable cost?
a) Rent expense
b) Direct materials cost
c) Salary of a manager
d) Depreciation
The correct answer is b) Direct materials cost.
23. Which of the following is a cost classification based on traceability to a cost object?
a) Sunk costs
b) Differential costs
c) Direct costs
d) Implicit costs
The correct answer is c) Direct costs.
24. Which cost is associated with more than one cost object?
a) Direct cost
b) Indirect cost
c) Variable cost
d) Fixed cost
The correct answer is b) Indirect cost.
25. Which of the following is a characteristic of fixed costs?
a) Varies in direct proportion to changes in activity level
b) Remains constant per unit as activity level changes
c) Changes in total as activity level changes
d) Includes direct materials cost
The correct answer is b) Remains constant per unit as activity level changes.
26. In cost-volume-profit (CVP) analysis, the margin of safety is calculated as:
a) Actual sales - Break-even sales
b) Actual sales - Target sales
c) Break-even sales - Target sales
d) Break-even sales - Actual sales
The correct answer is a) Actual sales - Break-even sales.
27. Which of the following is not a method for allocating indirect costs?
a) Activity-based costing (ABC)
b) Traditional costing
c) Direct costing
d) Step-down allocation
The correct answer is c) Direct costing.
28. Which cost is incurred specifically for a particular project or activity?
a) Sunk cost
b) Fixed cost
c) Variable cost
d) Direct cost
The correct answer is d) Direct cost.
29. Which type of cost remains unchanged as activity levels change within a relevant range?
a) Fixed cost
b) Variable cost
c) Semi-variable cost
d) Mixed cost
The correct answer is a) Fixed cost.
30. Which cost classification refers to costs that can be directly traced to a cost object?
a) Implicit costs
b) Sunk costs
c) Direct costs
d) Indirect costs
The correct answer is c) Direct costs.