MULTIPLE CHOICE QUESTIONS 1. The basic objective of cost accounting is A) Recording of cost B) Reporting of cost C) Cost control D) Earning Profit 2. Standard costs imply A) Predetermined cost for a period B) Incurred cost D) Incremental cost C) Conversion cost 3. Materials Management is needed A) To keep material cost under control B) To ensure continuous supply of material C) To avoid wrong stocking of material D) All the above 4. Cost of overtime is treated as A) Direct Wages B) Overheads C) Costing P&L item D) None of the above 5. Overhead means A) The aggregate of indirect materials, indirect labour and indirect expenses B) All expenses with respect to materials C) All expenses with respect to labour D) Direct and indirect expenses 6. When the actual overhead is more than the absorbed overhead, then it is called A) Capacity costs C) Under absorption B) Over absorption D) None of the above 1 7. Work in progress (WIP) in contract costing means A) Work certified only B) Work certified and work uncertified C) Work uncertified only D) None of these 8. Job costing is suitable for A) Firms manufacturing goods on a continuous basis B) Firms manufacturing goods to customer's specific requirements C) Departments/organisations rendering services D) Continuous or mass production industries 9. Integrated accounting system is beneficial because A) Perpetual inventory system can be dispensed with B) No valuation of work in progress is necessary C) Estimation of budgets easy D) It eliminates problems of reconciliation