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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-5 section-6

Each section contains 100 MCQs on Costing .
41
Difference between budgeted amounts and actual results is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Difference between budgeted amounts and actual results is classified as variances. Variance is a measurement of the spread between numbers in a data set. The variance measures how far each number in the set is from the mean.
42
A manager who is responsible for only cost of company belongs to
Discuss
Answer & Solution
Answer: Option A
Solution:
A manager who is responsible for only cost of company belongs to cost center. A cost center is a department within an organization that does not directly add to profit but still costs the organization money to operate.
43
A manager, who is responsible for both cost and revenues belongs to department of
Discuss
Answer & Solution
Answer: Option C
Solution:
A manager, who is responsible for both cost and revenues belongs to department of profit center. A profit center is a branch or division of a company that directly adds to the corporation's bottom-line profitability.
44
Larger number of manager subordinates and higher level manager are termed as
Discuss
Answer & Solution
Answer: Option B
Solution:
Larger number of manager subordinates and higher level manager are termed as broader responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.
45
An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as coordinating company effort. Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.
46
Manager who is responsible for investments of company, its costs and revenues is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Manager who is responsible for investments of company, its costs and revenues is known as investment center. An investment center is a business unit that can utilize capital to contribute directly to a company's profitability.
47
Use of variables to signal whether strategies are effective or ineffective is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy. Strategy evaluation means collecting information about how well the strategic plan is progressing.
48
Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.
49
Which of following is an example of revenue center?
Discuss
Answer & Solution
Answer: Option A
Solution:
Sales department is an example of revenue center. A revenue center is a distinct operating unit of a business that is responsible for generating sales.
50
Variance, if used to alert managers before time of problem is called
Discuss
Answer & Solution
Answer: Option D
Solution:
Variance, if used to alert managers before time of problem is called early warning.