MGT 402 Cost & Management Accounting - 1

20 Questions | Total Attempts: 845

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MGT 402 Cost & Management Accounting - 1


Questions and Answers
  • 1. 
    Direct Material + Direct Labor + other direct cost =
    • A. 

      Prime Cost

    • B. 

      Factory OverHead (FOH)

    • C. 

      Conversion Cost

    • D. 

      None

  • 2. 
    If     Direct Material    =   12,000 Direct Labor       =   8000      other Direct Cost = 2000  then what will be the Prime Cost?
    • A. 

      12000

    • B. 

      14000

    • C. 

      20000

    • D. 

      22000

  • 3. 
    Direct Labour + Other Direct Cost + FOH  = 
    • A. 

      Prime Cost

    • B. 

      Factory OverHead (FOH)

    • C. 

      Conversion Cost

    • D. 

      None

  • 4. 
    Accounting is a language of ________________.
    • A. 

      Accountants

    • B. 

      Mathematics

    • C. 

      Mathematics

    • D. 

      NONE

  • 5. 
    Accounting has ____________ branches
    • A. 

      1

    • B. 

      2

    • C. 

      3

    • D. 

      4

  • 6. 
    Cost is classified in _____________ categories.
    • A. 

      1

    • B. 

      2

    • C. 

      3

    • D. 

      4

  • 7. 
    Cost that can be traced in full to the product or services is called
    • A. 

      Direct Cost

    • B. 

      Indirect Cost

  • 8. 
    Financial Accounting is a branch of management accounting.
    • A. 

      TRUE

    • B. 

      FALSE

  • 9. 
    Accounting is always a language of business
    • A. 

      TRUE

    • B. 

      FALSE

  • 10. 
    Cost Accounting is an art of Recording , Classifying, summarizing, Reporting, Interpreting of the Financial Information.
    • A. 

      TRUE

    • B. 

      FALSE

  • 11. 
    Cost is expenditure incurred.
    • A. 

      TRUE

    • B. 

      FALSE

  • 12. 
    Management Accounting deals with Ascertainment, Measurement, Accumulation, Budgeting & Evaluating cost structure of the entity.
    • A. 

      True

    • B. 

      FALSE

  • 13. 
    Cost Accounting deals with decisions relating to the generation & effective utilization of the financial resources of an entity. 
    • A. 

      TRUE

    • B. 

      FALSE

  • 14. 
    A firm Uses its own capital or Uses its owner's time and/or financial resources both are examples of ____________
    • A. 

      Implicit Cost

    • B. 

      Explicit Cost

  • 15. 
    _________________ is the cost that is subject to actual payment or will be paid for in future.
    • A. 

      Implicit Cost

    • B. 

      Explicit Cost

  • 16. 
    Wage, Rent & Materials are examples of ____________.
    • A. 

      Implicit Cost

    • B. 

      Explicit Cost

  • 17. 
    An investor invests in stock exchange he foregoes the opportunity to invest further in his hotel. The profit which the investor will be getting from the hotel is _________________.
    • A. 

      Opportunity cost

    • B. 

      Period Cost

    • C. 

      Product Cost

    • D. 

      Historical Cost

  • 18. 
    ____________ is verifiable through invoices/agreements.
    • A. 

      Opportunity Cost

    • B. 

      Product Cost

    • C. 

      Period Cost

    • D. 

      Historical Cost

  • 19. 
    _________________ is a Predetermine cost of the units.
    • A. 

      Standard cost

    • B. 

      Implicit Cost

    • C. 

      Product Cost

    • D. 

      None

  • 20. 
    Indirect cost is also known as overhead cost.
    • A. 

      True

    • B. 

      False

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