Introduction to cost and management accounting cost accounting. The most advantageous time to recognize a variance in the standard cost of a. The basic objective of cost accounting is a recording of cost b reporting of cost c cost control d earningprofit 2. The next 3 questions refer to the following information. Its objective is to recommend the management on one of the most proper course of action based. Accounting concepts, activity based costing and management, balanced scorecard and strategic profitability analysis, balanced scorecard, quality, time and theory of constraints, accounting.
Multiple choice questions on basic accounting q1 which accounting concept satisfy the valuation criteria a going concern, realisation, cost b going concern, cost, dual aspect c cost, dual aspect, conservatism d realisation, conservatism, going concern. Cima, london, defines standard costing as the predetermined cost based on technical estimates of materials, labour and overheads for selected period of time and for the prescribed set of working conditions. This is a sample pdf of our managerial and cost accounting exam you can view the entire exam 81 pages. Which variances are calculated and shown in the variance report depends on how useful the information will be in controlling the business. We have created an important links for only study purposes mainly those who are eagerly want to get jobs in government. A standard cost is a planned cost for a unit of product or service rendered. We have prepared this mcqs quiz for standard costing so that students can assess who much they learned about this topic. A marginal costing i meaning of marginal cost and marginal costing ii absorption costing vs. In august actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit.
Standard costing standard direct labor cost is the product of the direct labor rate standard and the direct labor time standard. According to icma, london, standard costing is the preparation and use of standard costs, their comparison with actual cost and the. The following accounting mcqs are from basics of accounting, financial accounting, and cost accounting. When calculating cost variances under a standard costing system we must. Standard costing mcqs quiz with answers play accounting. Accounting mcq multiple choice question with answer accounting mcq with detailed explanation for interview, entrance and competitive exams. Understand the cost accounting standards cas apply marginal costing in decision making apply the concept of standard costing for variance analysis skill set required level b. The standard selling price and variable costs for one unit of the product are as follows. Overheads are assumed to be related to direct labour hours of active working. Material costing methods short questions material costing methods fill in the blanks related. Cost accounting quiz questions and answers pdf, mcqs on basic accounting concepts, standards, accounting principles, balanced scorecard, strategic financial analysis, strategic management, a.
Multiple choice questions with answers on standard costing. For fillintheblank questions press or click on the blank space provided. Chapter 9 standard costing, flexible budgeting and variance analysis questions 1. The use of absorption costing causes inventory value to increase more than.
If you have difficulty answering the following questions, learn more about this topic by reading our standard. The use of absorption costing causes inventory value to increase more than they would through the use of. Pdf estimation and costing books collection free download. Students need a clear understanding of this subject as it teaches. Just click the start quiz button and start material costing methods mcqs quiz. Estimating and costing multiple choice questions with answers pdf free download for civil engineering students. Standard costing and variance analysis multiple choice questions.
If you have difficulty answering the following questions, learn more about this topic by reading our standard costing explanation. Home category finance mcq questions and answers standard costing. Unit 6 module 10 standard costing information and library. Standard costing is a control system that enables any variances from standard cost or budget to be analysed in some detail.
Standard costing manufacturing overhead 47 answers 306 340 51. In the first week of january 2003 it was ascertained that 2,000 units were produced despite 20% idle time due to power failure and actual rate of wages was rs. Cost accounting multiple choice questions and answers pdf mcqs. Chapter 7 standard costing and variance analysis learning objectives after reading and studying chapter 7, you. Dec 20, 2016 civil engineering objective questions and answers pdf welcome to you. The budget sales and prime costs for april 20x1 for component l63a are as follows. Which of these is not an objective of cost accounting. Financial accounting is primarily concerned with record keeping directed towards the preparation of profit and loss account and balance sheet. Standard costing system discussion questions and answers. Requiring the skill levels of knowledge, comprehension, application and analysis. Standard costing and variance analysis double entry.
Standard costing in a standard costing system, costs are entered into the materials, work in process, and finished goods inventory accounts and the cost of goods sold account at standard cost. This page you will find civil engineering mcq question study materials in pdf format. Cost accounting multiple choice questions has 1083 mcqs. Chapter 7 standard costing and variance analysis learning. This is very useful for all kind of competitive examinations. Activitybased costing and cost management systems multiple choice questions. Standard costing standard direct materials cost is the product of the direct materials price standard and the direct materials quantity standard. Cost accounting page 5 module i introduction cost accounting is a branch of accounting and has been developed due to limitations of financial accounting. Standard costing is universally accepted as an effective instrument for cost control in industries. A profit centre is a centre a where the manager has the responsibility of generating and maximising profits. Cost accounting study guide with questions and answers about accounting concepts, activity based costing and management, balanced scorecard and strategic profitability. Further we have highlighted the concept of activity based costing, cost records, different costing systems.
Costing mcq questions and answers with easy and logical explanations. Variance analysis finance mcq questions and answers. When standard relating to each element of cost is fixed or established, it becomes necessary to maintain a standard cost sheet or a standard cost card in order to show the standard quantity and price of each type of material, labour time and rates, as also hours and rates of fixed and variable overheads. Discuss the essentials of an effective standard costing. Estimating and costing is a core subject in civil engineering courses. Sample test paper this test paper is for practice and self study only and not to be sent to the institute. Priory pegamoid limited produces a range of parts for industrial weaving machines. It is a method of costing by which standard costs are employed. Let us make an indepth study of the meaning, objectives, development, advantages and disadvantages of standard costing.
Costing mcqs i basic costing i accountancy knowledge. Which of the following variances values would change if the company switched from standard marginal costing. The use of absorption costing produces a lower net income than the use of variable costing. Costing mcq is important for exams like ca, cs, cma, cpa, cfa, upsc, net, banking and other accounts department exam.
A standard costing system is a method of cost accounting in which standard costs are used in recording certain transaction and the actual costs are compared with the standard cost to learn the amount and. The essence of standard costing is to set objectives and targets to achieve them, to compare the actual costs with these targets. Find answers to the questions at the bottom of the page. Jan 08, 2014 standard costing is developed due to the shortcomings of historical costing. The institute of cost and works accountants of india has recently issued cost accounting standard cas 1 to 4 also to understand the subject in a better manner as follows. Accounting basics mcqs are designed for testing your knowledge for basic concepts like users of accounting, types of accounting and purpose of accounting. Standard costing involves the setting of predetermined cost estimates in order to provide a basis for comparison with actual costs. Standard costing and variance analysis topic gateway series 3. Take a quick multiple choice questions mcqs test about material costing methods. Standard costs imply a predetermined cost for a period b incurred cost c conversion cost d incremental cost 3. Chapter 9 standard costing, flexible budgeting and.
If so, does this lead to e cient resource allocation. Standard cost the planned unit cost of the product, component or service produced in a period. Cs executive costing revised syllabus for june 2018 exam are given below. Marginal costing and break even analysis 259304 study note budgets and budgetary control 305348 study note 14 standard costing 349396 study note 15 uniform costing and inter firm comparison 397406 study note 16 activity based costing 407416 study note 17 transfer pricing 417428 sets of objective questions cost and management accounting. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations.
Costing mcqs consists of types of cost, types of profit, cgs related multiple choice questions and suitable available in list of answers. Cost accounting quiz questions and answers pdf with practice tests for online exam prep and job interview prep. Cost accounting multiple choice questions and answers mcqs. The standard cost may be determined on a number of bases. What does the direct labor efficiency variance tell us. Costing mcq questions and solutions with explanations. In this article we will discuss about top seven problems on standard costing with their relevant solutions. Ca final indirect direct tax summary book pdf may 2020.
Strategic choice multiple choice questions with answers on standard costing and variance analysis. The main difference or differences between how traditional costing and activity based costing treat indirect manufacturing costs is are that. Standard costing and variance analysis topic gateway. Standard cost sheet with specimen standard costing. Standard costing is used to ascertain the standard cost under each element of cost, i. Standard costing and variance analysis multiple choice. Cost accounting multiple choice questions and answers mcqs pdf is a revision guide with a collection of trivia quiz questions and answers pdf on topics. In standard costing, how is the purchase price variance reclassified to arrive at actual cost. Cost accounting quiz questions and answers pdf, mcqs on basic accounting concepts, standards, accounting principles, balanced scorecard, strategic financial analysis, strategic management, activity based costing, financial accounting, management accounting mcqs with answers, basic variance analysis, pricing, customer profitability. Cost accounting multiple choice questions and answers.
A profit centre is a centre a where the manager has the responsibility of. Nov 23, 2018 take a quick multiple choice questions mcqs test about material costing methods. Commerce provides you all type of quantitative and competitive aptitude mcq. These mcqs can help you to prepare for your exams, interviews and different tests. The maintenance of cost accounting records became mandatory since 1965, after the addition of sec. Cs executive costing mcq pdf for december 2018 exam cakart. Multiple choice questions and answers on standard costing. Process costing mcqs is a collection of multiple choice questions of one or more department for preparing cost of production report. The standard cost of direct materials is the cost the manufacturer should have used to. Strategic choice is a key step within the strategic planning process. Compare actual costs with standard costs at the actual level of output. Standard costing and variance analysis quizzes about this quiz. Student should know about cs executive syllabus while preparing cs executive exam. This approach represents a simplified alternative to co.
Jan 20, 2019 we have prepared this mcqs quiz for standard costing so that students can assess who much they learned about this topic. Standard costing overview standard costing is the practice of substituting an expected cost for an actual cost in the accounting records. Process costing mcqs i cost of production report mcqs. Subsequently, variances are recorded to show the difference between the expected and actual costs. Introduction a standard cost is based on the expected price and usage of material, labour and overheads. Standard costing finance mcq questions and answers. Actual, normal, and standard costing b a 521 should a job in january be costed at the same amount as a job in july. Standard costing is less suited to organisations that produce nonhomogenous products or where the level of human intervention is high. Chapter 9 standard costing, flexible budgeting and variance. For multiple choice questions, you need only write the subquestion number and the letter of the. Standard costing can also simplifying cost bookkeeping see chapter 11. Costing mcq questions and solutions with explanations commerce.
A team of management consultants and company executives concluded that a standard cost installation was desirable vehicle for accomplishing the objectives of a progressive management. For multiplechoice and truefalse questions, simply press or click on what you think is the correct answer. Standard costing and variance analysis topic gateway series 4 a standard costing system consists of the following four elements. The main source s of generally accepted accounting principles gaap isare.
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