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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-4 section-8

Each section contains 100 MCQs on Costing .
31
Which one of following is an example of spoilage?
Discuss
Answer & Solution
Answer: Option B
Solution:
Defective aluminium cans recycled by manufacturer is an example of spoilage. Spoilage is waste or scrap that occurs during the manufacturing process.
32
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate normal spoilage rates. The normal spoilage will be calculated as the total number of spoiled units, divided by the total units produced, and multiplied by 100.
33
An amount of spoilage that is not natural in a specific production process is categorized as
Discuss
Answer & Solution
Answer: Option C
Solution:
An amount of spoilage that is not natural in a specific production process is categorized as abnormal spoilage. Abnormal spoilage does not directly correspond to the number of units produced, and is considered an unexcepted surplus.
34
Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate
Discuss
Answer & Solution
Answer: Option D
Solution:
Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate total spoilage.
35
Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Stage in production process, where manufactured goods are checked; whether units are acceptable or not is classified as inspection point. An inspection point is an identifiable record of inspection results that is assigned to a work or inspection operation.
36
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as rework. Rework refers to the correction of a product that does not initially meet an entity's minimum quality standards.
37
An example of rework is
Discuss
Answer & Solution
Answer: Option C
Solution:
An example of rework is detection of defective pieces before shipment. Rework refers to the correction of a product that does not initially meet an entity's minimum quality standards.
38
If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
39
Aspects of accounting for scrap includes
Discuss
Answer & Solution
Answer: Option D
Solution:
Aspects of accounting for scrap includes physical tracking and inventory costing.
40
Normal spoilage is subtracted from total spoilage to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Normal spoilage is subtracted from total spoilage to calculate abnormal spoilage. Abnormal spoilage is the amount of waste or destruction of inventory beyond what is expected in normal business processes.