One of the most important tools in cost planning is__________?

Related Mcqs:

1. Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?

   A. 1,600
   B. 1,500
   C. 1,000
   D. 1,800

   Updated by: Mohammad Ejaz

2. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

   A. Direct cost
   B. Variable cost
   C. Commercial cost
   D. Conversion cost

3. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

   A. 18,387
   B. 18,560
   C. 18,750
   D. 19,000

4. Which of the following can be considered as the most important phase of accounting cycle and it is the primarily objective of financial accounting?

   A. Identifying transactions
   B. Preparing “T Accounts”
   C. Preparing financial statements
   D. Preparing trial balances

5. Which is the most important characteristic that all assets of a business have?

   A. Long life of assets
   B. Value of assets
   C. Intangible nature of assets
   D. Future economic benefits

6. In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?

   A. Straight-line method
   B. Written down value method
   C. Units-of-production method
   D. Sum-of-the years‘-digits method

7. Which of the following bases is not appropriate for apportionment of Transport department‘s cost ?

   A. Crane hours
   B. Crane value
   C. Truck Mileage
   D. Truck value

8. The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :

   A. Uncontrollable cost
   B. Sunk cost
   C. Avoidable cost
   D. Opportunity cost

9. Direct cost incurred can be identified with_______________?

   A. Each Department
   B. Each unit of output
   C. Each Month
   D. Each Executive

   Submitted by: ALIYA NAWAZ

10. Overhead cost is the total of ____________.

    A. all indirect costs.
    B. all direct costs.
    C. indirect and direct costs.
    D. all specific costs

    Submitted by: ALIYA NAWAZ