Pak
QuizHub
Home
Important MCQs
Past Papers
About
Contact
Privacy
Cost Accounting Mcqs
/
MCQs
Cost Accounting Mcqs – MCQs
1069 questions. Click to practice.
Show Answers
Correct options are highlighted when revealed.
1.
What term describes a collection of individual indirect cost elements grouped together?
direct cost group
cost pool
indirect cost cluster
item collection
expense bundle
2.
In normal costing, what term describes the condition when the allocated indirect costs exceed the actual indirect costs incurred?
actual indirect cost incurred
overapplied indirect cost
allocated indirect cost
applied direct cost
underapplied indirect cost
3.
What is the process called that involves assigning indirect costs to a specific cost object?
cost allocation
sales tracing
sales allocation
cost tracing
4.
When combining relevant ordering expenses with relevant holding expenses, what is the resulting calculation called?
relevant total costs
contribution costs
throughput costs
optimized costs
variable costs
5.
To determine ____________, you multiply the purchase order lead time by the quantity of units sold within a given time period.
storage expenses
total applicable expenses
optimal order quantity
reorder point
order processing time
6.
To determine ___________, the reorder point is divided by the quantity of units sold per time period.
applicable inventory holding cost
applicable ordering expense
duration of a purchase order cycle
total count of purchase orders
7.
In the manufacturing process, what is the term for the phase when accounting journal entries are recorded?
linking stage
entry phase
initiation point
trigger point
activation phase
8.
Which costing method involves skipping certain journal entries in the accounting process?
just-in-time costing
event-driven costing
backflush costing
lead-time costing
process costing
9.
To determine ___________, the relevant incremental costs are combined with the appropriate opportunity cost of capital.
expenses related to purchase orders
applicable costs for holding inventory
non-essential inventory holding expenses
pertinent costs associated with ordering
10.
What do you obtain by multiplying the average inventory units by the yearly relevant carrying cost per unit?
Yearly irrelevant ordering expenses
Yearly relevant carrying expenses
Yearly relevant ordering expenses
Yearly irrelevant carrying expenses
11.
Given an annual demand of 18,000 units, a relevant ordering cost of $150 per order, and an order size of 1,500 units, what is the total relevant ordering cost for the year?
$200
$190
$160
$180
12.
What term describes the organized movement of products, services, or information from the procurement of raw materials to the final delivery to customers?
supply chain
value chain
material flow chain
production flow chain
distribution network
13.
To determine __________, the required rate of return is multiplied by the cost per unit of purchased inventory.
non-essential inventory holding expenses
the pertinent opportunity cost of capital
significant purchase order expenses
important inventory holding charges
14.
Which category includes expenses related to product defects, error prevention, and quality assessments?
Inventory holding expenses
Costs due to inventory shortages
Quality-related costs
Losses from product shrinkage
Operational overheads
15.
Given an average inventory of 2,000 units and an annual carrying cost of $5 per unit, what is the total annual carrying cost?
$5,000
$4,500
$5,500
$6,000
16.
Which of the following represents a type of cost associated with purchasing?
transportation fees for delivery
expenses for warehousing
insurance charges
losses due to product damage
maintenance expenses
17.
Given an annual demand of 25,000 units, an ordering cost of $210 per order, and a holding cost of $25 per unit, what is the Economic Order Quantity (EOQ)?
678 units
648 units
658 units
668 units
18.
Which category encompasses tasks involving the coordination, control, and planning of inventory movement?
management of decision processes
management of production flow
management of inventory
management of manufacturing operations
19.
How are the expenses related to items bought from vendors categorized?
Costs due to inventory shortages
Expenses for placing orders
Costs associated with storing inventory
Costs incurred from purchasing goods
Transportation expenses
20.
What term describes the profit lost when capital is tied up in inventory instead of being invested elsewhere?
applicable expenses for purchase orders
applicable costs associated with holding inventory
non-applicable costs related to carrying inventory
applicable opportunity cost of invested capital
← Previous
Page 12 of 54
Next →