Multiple Choice Questions on Activity Based Costing -A Modern Method.

1. MULTIPLE CHOICE QUESTIONS
TOPIC- ACTIVITY BASED COSTING
SUBJECT – COST & WORKS ACCOUNTING-II
PRESENTED BY
DR.SHRADHA PRASAD

2. A . Modern B. Ancient
C . Traditional D . Recent
Answer : A - Modern
6/10/2021 2
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Activity Based Costing is a ________ methodology of accounting.

3. A . Costs B . Activities
C . Products D . Services
Answer : B - Activities
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COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
In Activity Based Costing _________ become the focal points for cost
accumulation.

4. A . Price B . Place
C . Product D . Promotion
Answer : C- Product
6/10/2021 4
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Activity Based Costing assumes _______ create the demand for
activities.

5. A . Wipe-off B . Switch-off
C . Turn-off D . Shut-off
Answer : A – Wipe-off
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COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Activity Based Costing is designed to _______the inadequacies in
conventional cost accounting methods.

6. A . Riders B . Drivers
C. Bikers D . Hikers
Answer : B- Drivers
6/10/2021 6
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Cost _______ is an activity which generates cost.

7. A . First Stage Allocation B . Second Stage
Allocation
C . Third Stage
Allocation
D . Fourth Stage
Allocation
Answer : - B- Second Stage Allocation
6/10/2021 7
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Dividing costs of the department into activity cost pools is known as
_____

8. A . Forces B . Sources
C . Courses D . Resources
Answer : A - Forces
6/10/2021 8
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Cost Drivers are the _______ that causes the activities.

9. A .Activity Cost Driver B . Resource Cost Driver
Answer : B – Resource Cost Driver
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COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
________ is a measure of the quantity of resource consumed by an
activity.

10. A . True B . False
Answer : A -True
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COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Activity Based Costing is a complement to Total Quality Management.

11. A . True B . False
Answer : A - True
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COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Activity Based Costing Approach facilitates the identification of
unnecessary activities.

12. 6/10/2021 12
COST & WORKS ACCOUNTING - II
BY DR. SHRADHA PRASAD
Thank You