Cost Management and Pricing Decisions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Cost Management and Pricing Decisions, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Cost Management and Pricing Decisions MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Cost Management and Pricing Decisions mcq questions that explore various aspects of Cost Management and Pricing Decisions problems. Each MCQ is crafted to challenge your understanding of Cost Management and Pricing Decisions principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Cost Management and Pricing Decisions MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Cost Management and Pricing Decisions. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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Cost Management and Pricing Decisions MCQs | Page 11 of 15

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Q101.
In relevance concepts, the relevant revenues are also termed as

a.

parallel revenues

b.

abnormal revenues

c.

expected future revenues

d.

serial revenues

Discuss
Answer: (c).expected future revenues
Q102.
The first step in decision making process is to

a.

identify the problem

b.

identify the linear variable

c.

identify the certainty

d.

identify the multiplier

Discuss
Answer: (a).identify the problem
Q103.
Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as

a.

outsourcing

b.

insourcing

c.

idle sourcing

d.

sunk sourcing

Discuss
Answer: (a).outsourcing
Q104.
In broader categories, the outcomes of decisions are classified as

a.

sunk factors

b.

quantitative factors

c.

qualitative factors

d.

both b and c

Discuss
Answer: (d).both b and c
Q105.
The cost of new machine is considered as

a.

relevant

b.

bunk

c.

dispose value

d.

sunk

Discuss
Answer: (a).relevant
Q106.
An investment of money in idle inventory, in place of investing the same amount of money somewhere else is an example of

a.

offshore cost

b.

outsource cost

c.

in-source cost

d.

opportunity cost

Discuss
Answer: (d).opportunity cost
Q107.
The book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as

a.

operating cost

b.

sunk cost

c.

in-house cost

d.

out-house cost

Discuss
Answer: (b).sunk cost
Q108.
The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as

a.

bundled products allocation method

b.

variable cost allocation method

c.

stand-alone cost allocation method

d.

incremental cost allocation method

Discuss
Answer: (d).incremental cost allocation method
Q109.
The first ranked product, in incremental revenue allocation method, is classified as

a.

primary product

b.

First incremental product

c.

Second incremental product

d.

Third incremental product

Discuss
Answer: (a).primary product
Q110.
The products, divisions and customers are the examples of

a.

revenue increment

b.

reciprocal revenue

c.

revenue allocation

d.

revenue object

Discuss
Answer: (d).revenue object
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