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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-3

Each section contains 100 MCQs on Costing .
21
"Calculate re-order level from the following:
Safety stock: 1000 units
Consumption per week: 500 units
It takes 12 weeks to reach material from the date of ordering"
Discuss
Answer & Solution
Answer: Option D
Solution:
Re-order level = Safety stock + Total consumption
= 1000 + (500 × 12) = 1000 + 6000 = 7000 units.
22
"From the following information, calculate the extra cost of material by following EOQ:
Annual consumption = 45000 units
Ordering cost per order = Rs 10
Carrying cost per unit per annum = Rs 10
Purchase price per unit = Rs 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk"
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
23
Which of the following is an abnormal cause of Idle time:
Discuss
Answer & Solution
Answer: Option D
Solution:
Machine break downs is an abnormal cause of Idle time. Abnormal idle time may arise in case of all types of workers.
24
If overtime is resorted to at the desire of the customer, then the overtime premium:
Discuss
Answer & Solution
Answer: Option C
Solution:
If overtime is resorted to at the desire of the customer, then the overtime premium should be charged to the job directly. Overtime premium is paid to the workers for the extra time worked than the normal working hours specified in the Factories Act, 1948 or work agreement with the union.
25
Labour turnover means:
Discuss
Answer & Solution
Answer: Option B
Solution:
Labour turnover is defined as the rate of change of labour force in an organization during a specified period.
26
Which of the following is not an avoidable cause of labour turnover:
Discuss
Answer & Solution
Answer: Option D
Solution:
Disability, making a worker unfit for work is not an avoidable cause of labour turnover.
27
Costs associated with the labour turnover can be categorised into:
Discuss
Answer & Solution
Answer: Option C
Solution:
Costs associated with the labour turnover can be categorised into Preventive Costs and Replacement costs.
28
"Calculate workers left and discharged from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method No of workers replaced during the quarter is 80"
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
29
"Calculate workers recruited and joined from the following:

Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method andSeparation method No of workers replaced during the quarter is 80"
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
30
Calculate the labour turnover rate according to replacement method from the following:
No of workers on the payroll:
- At the beginning of the month: 500
- At the end of the month: 600

During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Ofthese, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme
Discuss
Answer & Solution
Answer: Option B
Solution:
Replacement method = No of worker replaced during the period/Average no of workers at same period × 100
No of worker replaced during the period = 10
Average no of workers = (500+600)/2= 550
∴10/ 550 × 100
=1.82%