Cost and Management Accounting
Cost Control Accounts
In this articles we are providing TYBCOM-SEM VI- COST ACCOUNTING l Cost Control Accounts MCQ with Answer PDF. TYBCOM-SEM VI- COST ACCOUNTING l Cost Control Accounts MCQ with Answer Semester VI. We are providing 200+ MCQ with answer.
Multiple Choice Questions
1. Materials Requisition Note __________
a) Authorises and records the issue of materials for use
b) Records the return of unused materials
c) records the transfer of materials from one store to another
d) A classified record of materials, issues, return and transfer
2. Materials Transfer Note __________
a) Authorises and records the issue of materials for use
b) Records the return of unused materials
c) records the transfer of materials from one store to another
d) A classified record of materials, issues, return and transfer
3) A document which is a classified record of materials, issues, returns and transfers __________.
a) Materials Requisition Note
b) Materials Transfer Note
c) Materials Return Note
d) Materials issue Analysis Sheet
4. This is essential to make the cost ledger 'self-balancing'.
a) General Ledger Adjustment Account
b) Stores Ledger Control Account
c) Work-in-progress Ledger
d) Finished Goods Control Account
5. This is debited with all purchases of materials for the stores and credited with all issues of materials
a) General Ledger Adjustment Account
b) Stores Ledger Control Account
c) Work-in-progress Ledger
d) Finished Goods Control Account
6. In this, cost of materials, wages and overheads of each job undertaken is posted.
a) General Ledger Adjustment Account
b) Stores Ledger Control Account
c) Work-in-progress Ledger
d) Finished Goods Control Account
7. This represents the total value of finished goods in stock.
a) General Ledger Adjustment Account
b) Stores Ledger Control Account
c) Work-in-progress Ledger
d) Finished Goods Control Account
8. Material amounting to Rs. 58,300 is purchases on credit.
a) Purchases A/c Dr. 58,300
To Sundry Creditors A/c 58,300
b) Store Ledger Control A/c Dr. 58,300
To General Ledger Adj. A/c 58,300
c) Purchases A/c Dr. 58,300
To Cost Ledger Control A/c 58,300
d) Work-in-progress A/c Dr. 58,300
To General Ledger Adj. A/c 58,300
9. Salaries and wages amounting to Rs. 62,100 gross and earned by the employees, and deductions of Rs. 5,400 as provident fund. Rs. 2,400 as ESIC Rs. 4,300 as Income tax are made from the gross amount.
The entry in Cost Ledger under non-integrated System is
a) Salaries and Wages Control A/c Dr. 62,100
To General Ledger Adj. A/c 62,100
b) Salaries and Wages Control A/c Dr. 50,000
To General Ledger Adj. A/c 50,000
c) Salaries and Wages Control A/c Dr. 62,100
To Cost Ledger Adj. A/c 62,100
d) Salaried and Wages Control A/c Dr. 62,100
To Provident Fund A/c 5,400
To E.S.I.C A/c 2,400
To Income-Tax A/c 4,300
To General Ledger Adj. A/c 50,000
10. A concern has a non-integrated costing system. Salaries and wages analysis book indicates the following breakup :
Direct wages Rs. 38,600, Indirect wages Rs. 9,000, Administrative salaries Rs. 9,700
Administrative salaries Rs. 4,300
Which of the following statement is false:
i) No additional entry is passed in financial books for breakup.
ii) Work-in-progress Ledger Control A/c will be debited with Rs. 38,600
iii) Salaries and wages Control A/c will be debited with Rs. 62,100.
a) Only (i)
b) All
c) Only (iii)
d) None
11. In a non-integrated system of accounting, the emphasis is on,
a) Personal Accounts
b) Real Accounts
c) Nominal Accounts
d) All of these
12. Cost and Financial Accounts are required to be reconciled under
a) Integral system
b) Cost control accounts system
c) Under both (a) and (b)
d) None of these
13. Which of the following accounts makes the cost ledger sell-balancing?
a) Overhead adjustment account
b) Costing P & L Accounts
c) Cost ledger control account
d) None of the above
14. Purchases for special jobs is debited under non-integrated system to
a) Work-in-progress ledger control account
b) Cost ledger control account
c) Store ledger control accounts
d) Purchases accounts
15. __________ is an interlocking bookkeeping system.
a) A single, combined system containing both cost accounting and financial accounting records
b) A system combining cost accounting and management accounting
c) A system with high secured access
d) A system where separate accounts are kept for cost accounting and for financial accounting
16. The following documents are used in accounting for raw materials
i) Goods received note ii) Material returned note
iii) Material requisition note iv) Delivery note
Which of the documents may be used to record raw materials sent back to stores from production?
a) (i) and (ii)
b) (i) and (iv)
c) (ii) only
d) (ii) and (iii)
17. When production has been completed what double-entry would be made in a cost accounting system?
Debit Credit
a) Cost of Sales Finished Goods
b) Finished Goods Work-in-Progress
c) Finished Goods Cost of Sales
d) Work-in-Progress Finished Goods
18. The raw materials issued to a job were overestimated and the excess is being sent back to the materials store. What document is required?
a) Store credit note
b) Store debit note
c) Materials return note
d) Materials transfer note
19. __________ is a cost of ledger control account.
a) An account in the cost ledger to record financial accounting items
b) An account in the financial ledger to record cost accounting items
c) An account that summarises outstanding payable balances
d) An account that summaries outstanding receivable balances
20. The advantages of maintaining cost control accounts include the following:
a) Facilities prompt preparation of costing profit and loss account
b) Help management in policy formulation
c) Facilitate internal check
d) All of the above
_______________________________________________________________________________________
21. The work-in-progress control account is not debited with:
a) Direct materials and direct labour
b) Direct expenses
c) Production overheads (recovered)
d) Selling and distribution overheads
22. The application of factory overheads usually would be recorded as an increase in
a) Cost of goods sold
b) Work-in-progress control
c) Factory overheads incurred
d) Finished goods control
23. The debit balance of the overheads adjustment account may be transferred to
a) Cost of sales account
b) Profit and Loss Account
c) Finished goods account
d) work-in-progress
24. Materials lost in stores due to fire is
a) A part of normal loss and hence part of cost
b) Capitalized
c) A part of abnormal loss and hence excluded from cost
d) transferred to the next period
25. A credit to Work-in-progress inventory represents
a) work still in process
b) raw material put into production
c) the application of overhead to production
d) the transfer of completed items to Finished Goods Inventory
26. A journal entry included a debit to Work-in-progress Inventory and a credit to Raw Material Inventory.
a) Indirect material was placed into production
b) Raw material was purchased on account
c) Direct material was placed into production
d) Direct labour was used for production
27. The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to
a) Finished Goods Inventory
b) Work-in-progress Inventory
c) Cost of Goods sold
d) Raw material Inventory
28. The use of Indirect material would usually be reflected as an increase in
a) Stores control
b) Work-in-progress control
c) Manufacturing overhead applied
d) Manufacturing overhead control
29. A credit to the manufacturing overhead control account represents the
a) actual cost of overhead incurred
b) actual cost of overhead paid this period
c) amount of overhead applied to production
d) amount of indirect material and labour used during the period
30. When employees assemble products
a) Cost of goods manufacturing decreases
b) Work -in-progress inventory increases
c) Work in progress inventory decreases
d) Manufacturing overhead decreases
31. W Corporation's production department used Rs. 64,000 of materials to manufacture products during May. Which one of the following is one effect of recording this transaction ?
a) Raw materials increases by Rs. 64,000
b) Manufacturing Overhead in production Rs. 64,000
c) Cost of goods sold increases by Rs. 64,000
d) Work in progress increases by Rs. 64,000
32. The Finished Goods account contains the cost of all units
a) Unfinished at a given point in time
b) Completed at a given point in time
c) Produce during a particular period
d) Produced and sold during a particular period
33. The Work in progress account is credited when
a) Production of product is completed
b) Products are sold to customers
c) Completed goods are shipped to buyers
d) Costs of production are incurred
34. ________ account balances will decease as a result of completing products during the months.
a) Only work in progress inventory
b) Only Finished goods inventory
c) Both work in progress and finished goods ending balances will decrease
d) Neither account ending balance would increase: both would increase
35. T Co. complete two jobs whose costs total to Rs. 1,20,000. Which one of the following is one effect of this transaction?
a) Manufacturing Overhead in production Rs. 1,20,000
b) Cost of goods sold increases by Rs. 1,20,000
c) Work in progress decreases by Rs. 1,20,000
d) Finished Goods decreases by Rs. 1,20,000
36. N Corporation incurred Rs. 8,000 indirect labour and Rs. 42,000 direct labour. __________ is one effect of recording this transaction.
a) Indirect labour increases by Rs. 8,000
b) Work in progress increases by Rs. 50,000
c) Manufacturing costs increases by 42,000
d) Manufacturing overhead increase by Rs. 8,000
37. The balance of the work in process account is equal to
a) The total costs of the job completed
b) The total costs of the jobs completed and sold
c) The total manufacturing costs incurred during the period
d) The total costs of the incomplete jobs
38. __________ entry should be made when job is completed.
a) A debit to Finished Goods Inventory, and a credit to work in process inventory
b) A debit to work in process inventory, and a credit to Direct materials, Direct Labour, and Manufacturing Overhead
c) A debit to Finished Goods Inventory and a credit to Direct materials, Direct Labour, and Manufacturing Overhead
d) A debit to cost of goods sold inventory, and a credit to work in process inventory
39. When indirect material are requisition the __________ account is increased.
a) Manufacturing Overhead Control
b) Work-in-process Control
c) Materials Control
d) Accounts Payable Control
40. The Manufacturing Overhead Control account
a) is increases by allocation manufacturing overhead
b) is credited with amounts transferred to work in process
c) is decreased by allocated manufacturing overhead
d) is debited with actual overhead costs
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