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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-4

Each section contains 100 MCQs on Costing .
21
Cost, which is related to specific cost object and economically traceable, will be classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Cost, which is related to specific cost object and economically traceable, will be classified as direct cost. A direct cost is a price that can be completely attributed to the production of specific goods or services.
22
Material or anything for which cost is to be measured is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Material or anything for which cost is to be measured is known as cost object. A cost object is any item for which costs are being separately measured. It is a key concept used in managing the costs of a business.
23
Cost which is changed in proportion to level total volume is
Discuss
Answer & Solution
Answer: Option B
Solution:
Cost which is changed in proportion to level total volume is variable cost. Variable costs are costs that change as the quantity of the good or service that a business produces changes.
24
Costs are classified as fixed or variable on basis of
Discuss
Answer & Solution
Answer: Option D
Solution:
Costs are classified as fixed or variable on basis of specific activity and given time period.
25
Process of tracing direct costs and allocation of indirect costs is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Process of tracing direct costs and allocation of indirect costs is known as cost assignment. Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs.
26
Cost which remains unchanged, in proportion to level total volume of production is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Cost which remains unchanged, in proportion to level total volume of production is classified as fixed cost. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.
27
In accounting, cost which is predicted to be incurred or future cost is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
In accounting, cost which is predicted to be incurred or future cost is known as budgeted cost. A budgeted cost is a forecasted future expense that the company is expected to incur in the future.
28
Cost which is related to specific cost object and cannot be economically traceable is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Cost which is related to specific cost object and cannot be economically traceable is classified as indirect cost. Indirect costs are costs used by multiple activities, and which cannot therefore be assigned to specific cost objects.
29
Process of assigning indirect costs to any specific cost object is known as
Discuss
Answer & Solution
Answer: Option C
Solution:
Process of assigning indirect costs to any specific cost object is known as cost allocation. Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.
30
In accounting, resources sacrifice for achieving or fulfil specific objective is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
In accounting, resources sacrifice for achieving or fulfil specific objective is known as cost. Cost is the monetary value that a company has spent in order to produce a product.