This article provides top 15 objective type cost accounting MCQ with answers. These are useful for university exams, UGC NET, SET, MPS, UPSC and other competitive entrance exams. These solved cost accounting multiple choice questions are useful for MBA, MMS, PGDM, BBA, B Com , M Com, CA and other management students.
Compared with financial accounting cost accounting is relatively ______ development.
A. old
B. recent
C. earliest
D. both A & C
View Answer
B. recent
Cost accounting started as a branch of
A. financial accounting
B. Management accounting
C. corporate accounting
D. vedic accounting
View Answer
A. financial accounting
The vital importance that cost accounting has acquired in the modern age is because of the growth of _________ in modern industry
A. technologies
B. creativity
C. complexities
D. simplicity
View Answer
C. complexities
In brief, _________ is the activity of finding out the cost of products and services.
A. Financial accounting
B. Management accounting
C. Corporate accounting
D. Cost accounting
View Answer
D. Cost accounting
Cost accounting provides __________ cost information to various levels of Management for efficient performance of their functions.
A. Minute
B. Limited
C. Detailed
D. both A & B
View Answer
C. Detailed
Modern management needs _________ information than supplied by financial statements like profit and loss account and balance sheet.
A. less detailed
B. much more detailed
C. limited amount of
D. much more restricted
View Answer
B. much more detailed
The information supplied by cost accounting acts as a tool of Management for making ________
A. minimum use of scarce resources
B. maximum use of resources
C. optimum use of scarce resources
D. all of the above
View Answer
C. optimum use of scarce resources
Cost accounting makes optimum use of scarce resources which ultimately add to the __________ of business
A. loss
B. profitability
C. extinction
D. merger
View Answer
B. profitability
____________ is the process of determining and accumulating the cost of product or activity.
A. Cost accounting
B. Financial accounting
C. Cost control
D. Cost audit
View Answer
A. Cost accounting
_______ involves the classifying recording and appropriate allocation of expenditure for the determination of cost of products or services.
A. Pricing
B. Costing
C. Balancing
D. Cost Auditing
View Answer
B. Costing
Cost accounting is a quantitative method that accumulates classifies, summarizes and interpret information for ______
A. Operational planning and control
B. Special decision
C. Product decision
D. All of the above
View Answer
D. All of the above
_______ is the objective of cost accounting.
A. Controlling cost
B. Ascertaining costing profit
C. Determining selling price
D. All of the above
View Answer
D. All of the above
The term costing and cost accounting are many times used interchangeably but the scope of cost accounting is _______ .
A. limited as compared to costing
B. broader than that of costing
C. equal to costing
D. there is no relation between costing and cost accounting
View Answer
B. broader than that of costing
_________ involves the process of finding out the causal factors of actual cost varying from the budgeted cost and fixation of responsibility for cost increases.
A. Cost analysis
B. Cost ascertainment
C. Cost book-keeping
D. Cost system
View Answer
A. Cost analysis
________ involves maintaining complete record of all cost incurred from their in currency to their charge two departments products and services.
A. cost ascertainment
B. Cost bookkeeping
C. Cost system
D. Cost comparison
View Answer
B. Cost bookkeeping
__________ refer to presentation of cost primarily used by the management at different levels.
A. Cost audit
B. Cost ascertainment
C. Cost reports
D. Cost system
View Answer
C. Cost reports
This is all about solved MCQs on cost accounting.
You’ll also like to practice MCQs on Financial Accounting.