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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-2 section-1

Each section contains 100 MCQs on Costing .
11
Audit fess is a part of _______.
Discuss
Answer & Solution
Answer: Option D
Solution:
Audit fess is a part of administration overhead. Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead.
12
Cost accounting concepts include all the following except ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Cost accounting concepts include all the following except profit sharing. Cost accounting is an accounting method that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.
13
Toy manufacturing industry should use _______.
Discuss
Answer & Solution
Answer: Option C
Solution:
Toy manufacturing industry should use batch costing. Batch costing is another form of job costing. Under this method, homogeneous products are taken as cost unit. A batch consists of a specific number of products or units or articles.
14
Cost unit of a sugar industry can be ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Cost unit of a sugar industry can be per tonne. A cost unit refers to the unit of quantity of product, service or time (or combination of these) in relation to which costs may be ascertained or expressed.
15
The ascertainment of costs after they have been incurred is known as _________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The ascertainment of costs after they have been incurred is known as historical costing. In this type of costing system, the costs are ascertained only after they have been incurred.
16
Over time is ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Over time is actual hours being more than normal time. Overtime is the amount of time someone works beyond normal working hours.
17
Time keeping refers to _______.
Discuss
Answer & Solution
Answer: Option B
Solution:
Time keeping refers to time spent by workers in the factory. Time-keeping department is concerned with the recording of time of each worker engaged in the factory.
18
Labour productivity can NOT be measured by comparing ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Labour productivity can NOT be measured by comparing total wage and total output. Labor productivity measures the hourly output of a country's economy.
19
Given that for a job standard time is 8 hrs, actual time taken is 6 hrs and the time rate is Rs 2 per hr What is the total wages under Halsey premium plan?
Discuss
Answer & Solution
Answer: Option B
Solution:
Standard Time: 8 hrs Rate per Hour: Rs 2 Case (1): Time Taken = 8 hrs Earnings = 8 x 2 = Rs 16 Case (2): Time Taken = 10 hrs Earnings = 10 x 2 = Rs 20 Case (3): Time Taken= 6 hrs Earnings: Time wages = 6x 2 = Rs 12 Bonus = ½ x 2 x 2 = Rs Rs 2 Thus, the worker’s total earnings are Rs 14 (time wages +bonus), if he has completed the work in 6 hrs, less than the standard time.
20
Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._
Discuss
Answer & Solution
Answer: Option A
Solution:
Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time, Rowan plan allows more wages to a worker than Halsey plan.