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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-2

Each section contains 100 MCQs on Costing .
21
The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock weighted average method. Under this method weighted average price is calculated by dividing the total cost of material purchased during the accounting period, in which the material to be priced is used by the total quantity of material purchased during that period.
22
Under which method the rate of wages are linked with the cost of living index?
Discuss
Answer & Solution
Answer: Option D
Solution:
Under Graduated time rate method the rate of wages are linked with the cost of living index. Under this method the rates of wages are linked up with the cost of living index. Thus, the rate per hour or day fixed initially goes on changing with the changes in the cost of living index.
23
Under which plan efficiency is shared by employee and employer equally?
Discuss
Answer & Solution
Answer: Option C
Solution:
Under Halsey plan efficiency is shared by employee and employer equally.
24
Which of the following method of wage payment is most suitable where the speed of production is beyond the control of worker?
Discuss
Answer & Solution
Answer: Option A
Solution:
Time rate system method of wage payment is most suitable where the speed of production is beyond the control of worker. The time rate system is that system of wage payment in which the workers are paid on the basis of time spent by them in the factory.
25
Under which method of wage payment, wages are influenced by idle time?
Discuss
Answer & Solution
Answer: Option D
Solution:
Under Time wage rate method of wage payment, wages are influenced by idle time. Under time wage system, wages are paid on the basis of time spent on the job irrespective of the amount of work done.
26
The allotment of whole item of cost to cost centre or cost units is called _________.
Discuss
Answer & Solution
Answer: Option A
Solution:
The allotment of whole item of cost to cost centre or cost units is called cost allocation. The term allocation means the allotment of the whole item without division to a particular department or cost centre.
27
Packing cost is ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Packing cost is distribution cost. Packaging cost is a significant factor in pricing a product.
28
Directors remuneration and expenses form part of ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Directors remuneration and expenses form part of administrative overhead. Administrative overhead includes the expenses related to the administration and general operations of the business.
29
Absorption means ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Absorption means charging of overheads to cost units. It means costs is absorbed by the production (or product units )during the period or charging each unit of a product with an equitable share of overhead expenses.
30
Which of the following is a service department?
Discuss
Answer & Solution
Answer: Option C
Solution:
Receiving department is a service department. A service department is a cost center that provides services to the rest of a company. The manager of a service department is responsible for keeping costs down, or meeting the costs stated in a budget.