Costing MCQ Questions and Solutions with Explanations

31

Idle time variance is . . . . . . . .

A) Idle time × actual labour B) Idle time × standard rate C) Idle time × budgeted labour rate D) Idle time × historical cost

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Answer & Solution

Answer: Option B

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32

Cash flow statement is prepared from

A) Balance Sheet B) Profit and Loss A/c C) Additional information D) All of these

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Answer & Solution

Answer: Option D

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33

The normal cost of normal output is Rs. 3,000; value of abnormal loss is Rs. 450 and normal output is 200 units. The units of abnormal loss would be-

A) 30 units B) 1,333 units C) 3,000 units D) None of the above

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Answer & Solution

Answer: Option A

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34

Under the marginal costing concept, unit product cost would most likely be increased by

A) a decrease in the number of units produced B) an increase in the number of units produced C) an increase in the commission paid to salesman for each units sold D) a decrease in the commission paid to salesman for each units sold

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Answer & Solution

Answer: Option C

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35

Cost accounts deal partly with facts and figures and partly with . . . . . . . .

A) estimates B) costs C) income D) revenue

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Answer & Solution

Answer: Option A

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36

Which of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3?
I. Cash flow from borrowing activities.
II. Cash flow from operating activities.
III. Cash flow from financing activities.
IV. Cash flow from investing activities.
V. Cash flow from miscellaneous activities.

A) I, II and III B) I, III and V C) II, III and IV D) I, IV and V

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Answer & Solution

Answer: Option C

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37

Permanent working capital is generally financed through

A) Long-term capital funds B) Government assistance C) Internal financing D) Short-term loans from banks

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Answer & Solution

Answer: Option A

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38

Standard cost is a . . . . . . . . cost.

A) predetermined B) historical C) actual D) final

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Answer & Solution

Answer: Option A

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39

An inflow of cash would result from which of the following?

A) The increase in an assets account other than cash B) The decrease in an assets account other than cash C) The decrease in an equity account D) The decrease in a liability account

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Answer & Solution

Answer: Option B

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40

Formula of calculation of wages under Halsey Premium System is . . . . . . . .

A) √R + %(S - T)R B) T × R + %(S - T)R C) $$\frac{{{\text{S}} - {\text{T}}}}{{\text{S}}} \times {\text{T}} \times {\text{R}}$$ D) R × S × T

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Answer & Solution

Answer: Option B

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Costing MCQ Questions and Solutions with Explanations | Commerce