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Costing MCQ Questions and Solutions with Explanations | Commerce

Costing MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Costing MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-10 section-5

Each section contains 100 MCQs on Costing .
91
If an unexplained variation is 350050 and total variation is 700505, then coefficient of determination would be
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
92
Considering relationship of variables, relationship in which activity cost is included in dependent variable, which has similar cost driver is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Considering relationship of variables, relationship in which activity cost is included in dependent variable, which has similar cost driver is classified as homogeneous relationship.
93
Method which considers lowest and highest values of cost driver and cost within relevant range is called
Discuss
Answer & Solution
Answer: Option D
Solution:
Method which considers lowest and highest values of cost driver and cost within relevant range is called high low method. In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.
94
Vertical dashed line in graphical representation of cost function represents the
Discuss
Answer & Solution
Answer: Option C
Solution:
Vertical dashed line in graphical representation of cost function represents the relevant range. The relevant range refers to a specific activity level that is bounded by a minimum and maximum amount. Within the designated boundaries, certain revenue or expense levels can be expected to occur.
95
In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In dependent variable cost pool, relationship between individual cost items and cost drivers can be classified as no homogeneous relationship.
96
Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as
Discuss
Answer & Solution
Answer: Option A
Solution:
Value, which measures that how large is value of standard error in relevance to value of estimated coefficient is termed as t-value.
97
Chances of cost to be considered as variable are more, if the
Discuss
Answer & Solution
Answer: Option A
Solution:
Chances of cost to be considered as variable are more, if the time horizons are long. Time horizon is the length of time over which an investment is made or held before it is liquidated.
98
If actual result is $25000 and flexible budget amount is $11000, then flexible budget amount is
Discuss
Answer & Solution
Answer: Option D
Solution:
Flexible budget = Actual result - Flexible budget amount
= $25000 - $11000 = $14,000
99
Flexible budget variance for revenues of company is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Flexible budget variance for revenues of company is classified as selling price variance. Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product.
100
If actual selling price is $500, actual result is $250 and actual units sold are 350, then selling price variance will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Selling price variance = Actual result × Actual units sold
= $250 × 350 = $87,500