Cost Accounting MCQ With Answers PDF: If you are seeking a highly introductory cost accounting MCQ with answers that is both comprehensive and advanced then this is the book you have been looking for for ages. This book will guide you in smooth learning of cost accounting concepts such as Cost, Relevant Cost, Direct Materials, Direct Labor, Variable Costing, Overhead Expense, etc. These Cost Accounting Objective Type MCQs with Answers PDF Practice online addition questions and answers, multiple-choice questions (MCQ) on cost accounting principles of dimension, product costing, and capital budgeting.

Cost Accounting MCQ With Answers

1. Cost accounting makes optimum use of scarce resources which ultimately add to the __________ of business

A. loss

B. profitability

C. extinction

D. merger

Answer: profitability

2. ____________ is the process of determining and accumulating the cost of a product or activity.

A. Cost accounting

B. Financial accounting

C. Cost control

D. Cost audit

Answer: Cost accounting

3. _______ involves the classifying recording and appropriate allocation of expenditure for the determination of the cost of products or services.

A. Pricing

B. Costing

C. Balancing

D. Cost Auditing

Answer: Costing

4. Cost accounting is a quantitative method that accumulates classifies, summarizes, and interprets information for ______

A. Operational planning and control

B. Special decision

C. Product decision

D. All of the above

Answer: All of the above

5. _______ is the objective of cost accounting.

A. Controlling cost

B. Ascertaining costing profit

C. Determining selling price

D. All of the above

Answer: All of the above

6. The term costing and cost-accounting are many times used interchangeably but the scope of cost accounting is _______.

A. limited as compared to cost

B. broader than that of costing

C. equal to costing

D. there is no relation between costing and cost accounting

Answer: broader than that of costing

7. _________ 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

Answer: Cost analysis

8. ________ involves maintaining a complete record of all costs incurred from their in currency to their charge for two departments’ products and services.

A. cost ascertainment

B. Cost bookkeeping

C. Cost system

D. Cost comparison

Answer: Cost bookkeeping

9. __________ refer to the presentation of cost primarily used by the management at different levels.

A. Cost audit

B. Cost ascertainment

C. Cost reports

D. Cost system

Answer: Cost reports

10. Compared with financial accounting cost accounting is a relatively ______ development.

A. old

B. recent

C. earliest

D. both A & C

Answer: recent

11. Cost accounting started as a branch of

A. financial accounting

B. Management accounting

C. corporate accounting

D. vedic accounting

Answer: financial accounting

12. 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

Answer: complexities

13. 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

Answer: Cost accounting

14. 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

Answer: Detailed

15. 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

Answer: much more detailed

16. 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

Answer: optimum use of scarce resources

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