ExamVeda
Login
Home

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-6

Each section contains 100 MCQs on Costing .
91
Model which refers possibility for management to conduct sensitivity analysis can be categorized under
Discuss
Answer & Solution
Answer: Option B
Solution:
Model which refers possibility for management to conduct sensitivity analysis can be categorized under financial planning models. A financial planning model uses certain elements to create a future financial plan for a company.
92
Fourth step in development of operating budget is to
Discuss
Answer & Solution
Answer: Option A
Solution:
Fourth step in development of operating budget is to choose alternatives. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.
93
What-if technique, which examines changes in results if original prediction would not be achieved is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.
94
Continuous budget is also known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Continuous budget is also known as rolling budget. A rolling budget is continually updated to add a new budget period as the most recent budget period is completed.
95
Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as master budget. The master budget is the aggregation of all lower-level budgets produced by a company's various functional areas, and also includes budgeted financial statements, a cash forecast, and a financing plan.
96
First step in developing an operating budget is to
Discuss
Answer & Solution
Answer: Option B
Solution:
First step in developing an operating budget is to identify problem. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.
97
Second step in developing operating budget is to
Discuss
Answer & Solution
Answer: Option C
Solution:
Second step in developing operating budget is to obtain information. An operating budget is a forecast of the revenues and expenses expected for one or more future periods.
98
Factor which provides hedge to managers in adverse and unexpected circumstances is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Factor which provides hedge to managers in adverse and unexpected circumstances is known as budgetary slack. Budgetary slack is the deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.
99
Balancing of all aspects of products or services and all departments in company are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Balancing of all aspects of products or services and all departments in company are classified as coordination. Coordination is the essence of management and an integral part of all the managerial functions.
100
Schedule of expected disbursements and cash receipts is considered as
Discuss
Answer & Solution
Answer: Option B
Solution:
Schedule of expected disbursements and cash receipts is considered as cash budget. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.