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-2 section-6

Each section contains 100 MCQs on Costing .
11
If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Static budget = Flexible budget - Sales budget variance
= $97000 - $57000 = $40,000
12
Difference between flexible budget amount and corresponding actual result is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.
13
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate selling price variance. Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product.
14
Number of units are multiplied to per unit price, to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
Number of units are multiplied to per unit price, to calculate flexible budget variable. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results.
15
Budget which calculates expected revenues and expected costs, based on actual output quantity is named as
Discuss
Answer & Solution
Answer: Option A
Solution:
Budget which calculates expected revenues and expected costs, based on actual output quantity is named as flexible budget. A flexible budget, also called a variable budget, is financial plan of estimated revenues and expenses based on the current actual amount of output.
16
If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be
Discuss
Answer & Solution
Answer: Option C
Solution:
Actual result = Flexible budget amount + Flexible budget variance
= $27000 + $12000 = $39,000
17
Number of units are 5000 and per unit price is $60, then flexible budget variable would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Flexible budget variable = Number of units × per unit price
= 5000 × $60 = $3,000,000
18
If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be
Discuss
Answer & Solution
Answer: Option D
Solution:
Flexible budget = Flexible budget amount - Actual result
= $82000 - $45000 = $37,000
19
Difference between flexible budget amount and corresponding static budget amount is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Difference between flexible budget amount and corresponding static budget amount is classified as sales volume variance. The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit.
20
If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Selling price variance is calculated using the formula:

Selling Price Variance = (Actual Selling Price - Actual Result) x Actual Units Sold

Given:

Actual Selling Price = $400

Actual Result = $250

Actual Units Sold = 500

Substituting the values:

Selling Price Variance = ($400 - $250) x 500

Selling Price Variance = $150 x 500

Selling Price Variance = $75,000

Therefore, the selling price variance will be $75,000.