ExamVeda
Login
Home

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-4 section-4

Each section contains 100 MCQs on Costing .
31
In production, variables such as level of activity or volume of company activity are known as
Discuss
Answer & Solution
Answer: Option A
Solution:
In production, variables such as level of activity or volume of company activity are known as cost drivers. A cost driver is the direct cause of a cost, and its effect is on the total cost incurred.
32
Relationship between change in activity and change in total costs is considered as
Discuss
Answer & Solution
Answer: Option B
Solution:
Relationship between change in activity and change in total costs is considered as cause and effect relationship.
33
Direct cost assignment for specific cost object is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Direct cost assignment for specific cost object is classified as cost tracing. Cost tracing is the process of directly matching a cost with a product being produced, where cost allocation uses estimates to apply costs to products.
34
In accounting, cost incurred in past or in historical financial statements is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In accounting, cost incurred in past or in historical financial statements is classified as actual cost. Actual cost is the actual expenditure made to acquire an asset, which includes the supplier-invoiced expense, plus the costs to deliver, set up, and test the asset.
35
Collection of cost data, according to accounting system in an organized way is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Collection of cost data, according to accounting system in an organized way is classified as cost accumulation. Cost accumulation involves the use of a formal cost accounting system to collect cost information.
36
Which of following is an example of purchasing costs?
Discuss
Answer & Solution
Answer: Option C
Solution:
Insurance is an example of purchasing costs. It is important when you decide to buy a home that you have a full understanding of the costs associated with your purchase.
37
If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
38
If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
39
Cost of product failure, error prevention and appraisals can be classified under
Discuss
Answer & Solution
Answer: Option C
Solution:
Cost of product failure, error prevention and appraisals can be classified under costs of quality. Cost of quality (COQ) is defined as a methodology that allows an organization to determine the extent to which its resources are used for activities that prevent poor quality, that appraise the quality of the organization's products or services, and that result from internal and external failures.
40
Activities related to coordinating, controlling and planning flow of inventory are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Activities related to coordinating, controlling and planning flow of inventory are classified as inventory management. Inventory management refers to the process of ordering, storing, and using a company's inventory. These include the management of raw materials, components, and finished products, as well as warehousing and processing such items.