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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-3 section-1

Each section contains 100 MCQs on Costing .
21
Bonus under Rowan scheme is paid ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Bonus under Rowan scheme is paid as a proportion of time saved to standard time. In the Halsey Plan, bonus is usually set at 50% of the time saved. It does not serve as a strong incentive. On the other hand under the Rowan Plan, bonus is that proportion of the wages of the time taken which the time saved bears to the standard time.
22
Labour cost is the second element of ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Labour cost is the second element of cost. Labor cost covers one of the major portion of the total cost of a product or job.
23
How many rate are used to calculate wages under Taylor's differential piece rate system?
Discuss
Answer & Solution
Answer: Option A
Solution:
Two rate are used to calculate wages under Taylor's differential piece rate system. Taylor's Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies.
24
The loss which arise in manufacturing activity on account of inherent nature of the product is ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
The loss which arise in manufacturing activity on account of inherent nature of the product is normal loss. Normal loss means that loss which is inherent in the processing operations. It can be expected or anticipated in advance i.e. at the time of estimation.
25
Generally types of stores are classified into ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Generally types of stores are classified into three types.
26
In order to avoid the stoppage of production due to shortage of material _______.
Discuss
Answer & Solution
Answer: Option B
Solution:
In order to avoid the stoppage of production due to shortage of material minimum stock level is maintained. The minimum level of stock is a certain predetermined minimum quantity of raw materials or merchandise inventory which should always be available in stock in the normal course of business.
27
Discarded material substances having no value is called ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Discarded material substances having no value is called waste. Waste is defined as discarded material which has no value in normal use or for ordinary use.
28
Discarded material substances having some value is ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Discarded material substances having some value is scrap. It represents fragments or remnants of material that are left from certain type of manufacture. It is a material loss but has small value without further processing.
29
Which of the following is NOT a selling overhead?
Discuss
Answer & Solution
Answer: Option C
Solution:
Legal cost on debt realization is not a selling overhead. Selling expenses are those expenses which are incurred to promote sales and service to customers.
30
Idle capacity of a plant refers to the difference between ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Idle capacity of a plant refers to the difference between maximum capacity and actual capacity. Idle capacity is the remaining amount of capacity left in a company after productive capacity and protective capacity have been eliminated from consideration.