Cost Accounting Mock 2026

WASSCE style · Study mode

Cost Accounting Mock 2026

Question 1 of 50

Cost accounting is mainly concerned with

A. recording, analysing and controlling the costs of products and services B. preparing tax returns only C. auditing the accounts D. paying dividends

Question 2 of 50

Costs that can be traced directly to a unit of product are

A. direct costs B. overheads C. fixed costs D. period costs

Question 3 of 50

Prime cost is the total of

A. direct materials, direct labour and direct expenses B. all overheads C. fixed and variable costs D. selling and distribution costs

Question 4 of 50

Indirect costs that cannot be traced to a specific product are

A. overheads B. prime costs C. direct wages D. direct materials

Question 5 of 50

A cost that stays the same in total whatever the level of output (within a range) is a

A. variable cost B. fixed cost C. semi-variable cost D. marginal cost

Question 6 of 50

A cost that changes in direct proportion to output is a

A. fixed cost B. variable cost C. sunk cost D. step cost

Question 7 of 50

A worker paid by the number of units produced is on a

A. time rate B. piece rate C. salary D. bonus only

Question 8 of 50

A worker earns GH₵ 15 per hour and works 40 hours. Find the gross wage.

A. GH₵ 55 B. GH₵ 400 C. GH₵ 600 D. GH₵ 1,500

Question 9 of 50

A telephone bill with a fixed monthly rental plus charges per call is an example of a

A. fixed cost B. variable cost C. semi-variable cost D. sunk cost

Question 10 of 50

A unit of product or service for which costs are collected is a

A. cost unit B. cost centre C. cost driver D. profit centre

Question 11 of 50

A department or location to which costs are charged is a

A. cost centre B. cost unit C. invoice D. ledger

Question 12 of 50

The level of inventory at which a new order should be placed is the

A. reorder level B. maximum level C. minimum level D. economic order quantity

Question 13 of 50

Under FIFO, materials issued are priced at

A. the latest purchase prices B. the earliest purchase prices C. the average price D. the standard price

Question 14 of 50

The document used to request materials from the store is the

A. material requisition note B. goods received note C. purchase order D. delivery note

Question 15 of 50

The document prepared when goods are received from a supplier is the

A. goods received note B. material requisition C. credit note D. bin card

Question 16 of 50

A bin card records

A. sales made B. wages paid C. overheads absorbed D. quantities of each item received, issued and in stock

Question 17 of 50

Daily usage is 50 units and the lead time is 6 days. With no safety stock, find the reorder level.

A. 56 units B. 300 units C. 44 units D. 8 units

Question 18 of 50

The order quantity that minimises the total of ordering and holding costs is the

A. reorder level B. economic order quantity (EOQ) C. safety stock D. buffer stock

Question 19 of 50

In times of rising prices, FIFO gives a closing inventory value that is

A. lower than under LIFO B. higher than under LIFO C. the same as LIFO D. zero

Question 20 of 50

Charging overheads to cost centres on a fair basis is

A. allocation B. absorption C. apportionment D. under-absorption

Question 21 of 50

Charging a whole overhead to a single cost centre that caused it is

A. reapportionment B. apportionment C. absorption D. allocation

Question 22 of 50

When overheads absorbed are less than overheads actually incurred, there is

A. over-absorption B. a profit C. under-absorption D. no effect

Question 23 of 50

A product sells for GH₵ 25 and its variable cost is GH₵ 15. Fixed costs are GH₵ 20,000. Find the break-even point in units.

A. 800 units B. 1,333 units C. 2,000 units D. 20,000 units

Question 24 of 50

The contribution to sales ratio is also known as the

A. margin of safety B. current ratio C. gearing ratio D. profit/volume (P/V) ratio

Question 25 of 50

A predetermined cost used to measure performance by comparison with actual cost is a

A. sunk cost B. historical cost C. standard cost D. opportunity cost

Question 26 of 50

In periods of rising prices, FIFO gives a closing inventory value that is

A. higher than under LIFO B. lower than under LIFO C. the same as under LIFO D. zero

Question 27 of 50

Overheads absorbed are GH¢48,000 and actual overheads are GH¢50,000. The overheads are

A. under-absorbed by GH¢2,000 B. over-absorbed by GH¢2,000 C. exactly absorbed D. under-absorbed by GH¢98,000

Question 28 of 50

Fixed costs are GH¢20,000 and the contribution-to-sales ratio is 40%. What sales revenue is needed to break even?

A. GH¢50,000 B. GH¢8,000 C. GH¢28,000 D. GH¢80,000

Question 29 of 50

Annual demand is 1,000 units, ordering cost GH¢20 per order and holding cost GH¢4 per unit per year. The EOQ is

A. 200 units B. 100 units C. 50 units D. 500 units

Question 30 of 50

Period costs are

A. included in inventory B. charged to the period in which they are incurred C. always direct D. capitalised

Question 31 of 50

Under the Halsey bonus scheme, the worker receives

A. 50% of the time saved as bonus B. all of the time saved C. no bonus D. a fixed salary only

Question 32 of 50

Under-absorption of overheads occurs when

A. overheads absorbed are less than actual overheads B. absorbed exceeds actual C. there are no overheads D. sales are high

Question 33 of 50

Under marginal costing, closing inventory is valued at

A. variable production cost B. full cost C. selling price D. fixed cost only

Question 34 of 50

The re-order level is calculated as

A. EOQ ÷ 2 B. minimum usage × lead time C. maximum usage × maximum lead time D. average stock

Question 35 of 50

Over-absorption of overheads occurs when

A. absorbed overheads exceed actual overheads B. actual exceeds absorbed C. there are no sales D. costs are zero

Question 36 of 50

Annual demand is 1,800 units, the cost of placing an order is GH₵ 25 and the holding cost is GH₵ 1 per unit per year. Find the economic order quantity.

A. 150 units B. 300 units C. 600 units D. 90,000 units

Question 37 of 50

Maximum usage 50 units/day, maximum lead time 10 days. The re-order level is

A. 5 units B. 60 units C. 500 units D. 250 units

Question 38 of 50

Labour turnover: 30 leavers replaced, average workforce 300. The turnover rate is

A. 30% B. 10% C. 3% D. 1%

Question 39 of 50

Sales 5,000 units at GH¢20; variable cost GH¢12/unit; fixed costs GH¢25,000. Profit is

A. GH¢15,000 B. GH¢40,000 C. GH¢75,000 D. GH¢25,000

Question 40 of 50

Required profit GH¢16,000; fixed costs GH¢24,000; contribution per unit GH¢10. Units needed are

A. 4,000 B. 2,400 C. 1,600 D. 6,000

Question 41 of 50

Which cost is relevant for a decision?

A. a sunk cost B. a future cost that differs between alternatives C. a committed cost already paid D. an allocated fixed cost that does not change

Question 42 of 50

Opening stock 100 units at GH¢5; purchases 200 units at GH¢6; 150 units issued. Using FIFO, the cost of issues is

A. GH¢850 B. GH¢900 C. GH¢800 D. GH¢750

Question 43 of 50

Opening stock 100 units at GH¢5; purchases 200 units at GH¢6; 150 units issued. The cost of issues under the weighted average method is

A. GH¢825 B. GH¢800 C. GH¢900 D. GH¢850

Question 44 of 50

Annual usage 2,400 units, ordering cost GH¢30, holding cost GH¢4 per unit per year. EOQ is

A. 120 units B. 190 units C. 600 units D. 60 units

Question 45 of 50

Standard time 10 hours; actual 8 hours; rate GH¢5/hour. Under the Halsey scheme (50%), total pay is

A. GH¢50 B. GH¢40 C. GH¢45 D. GH¢48

Question 46 of 50

Under the Rowan scheme, bonus = (time saved/time allowed) × time taken × rate. For 10 h allowed, 8 h taken, GH¢5/h, the bonus is

A. GH¢4 B. GH¢10 C. GH¢5 D. GH¢8

Question 47 of 50

Budgeted overheads GH¢60,000; budgeted labour hours 12,000; actual hours 13,000; actual overheads GH¢62,000. Overheads are

A. over-absorbed by GH¢3,000 B. under-absorbed by GH¢3,000 C. over-absorbed by GH¢2,000 D. exactly absorbed

Question 48 of 50

Service department costs reapportioned among production departments using the repeated distribution method account for

A. reciprocal services between service departments B. only direct costs C. only sales D. profits

Question 49 of 50

A firm sells 5,000 units at GH¢20 each; variable cost is GH¢12 per unit and fixed costs are GH¢25,000. Its margin of safety in units is

A. 1,875 B. 3,125 C. 5,000 D. 2,500

Question 50 of 50

In process costing, normal loss is

A. expected loss absorbed by good output B. charged to the income statement as abnormal C. always zero D. added to profit

Questions written by OtisamLMS in the style of the WASSCE. They are not WAEC past questions.