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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-6 section-1

Each section contains 100 MCQs on Costing .
51
operating costing is a ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Operating costing is a method of costing. Operating costing is a process and technique of accumulating and ascertainment of cost for providing a standardized service to the public or to an undertaking.
52
In goods transport service the cost unit is ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
In goods transport service the cost unit is cost per ton kilo meters.
53
Difference between job time and attendance time is
Discuss
Answer & Solution
Answer: Option D
Solution:
Difference between job time and attendance time is idle time. Idle time is unproductive time on the part of employees or machines caused by management or as a result of factors beyond their control. Idle time is the time associated with waiting, or when a piece of machinery is not being used but could be.
54
Overhead cost is the total of ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Overhead cost is the total of all indirect costs. Overhead costs refer to those expenses associated with running a business that can't be linked to creating or producing a product or service.
55
Operating costing is suitable for _______.
Discuss
Answer & Solution
Answer: Option D
Solution:
Operating costing is suitable for service industries. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.
56
Prime cost plus variable overheads is known as________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Prime cost plus variable overheads is known as Marginal cost. Marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit; that is, it is the cost of producing one more unit of a good.
57
Wages paid to a labour who was engaged in production activities can be termed as _______.
Discuss
Answer & Solution
Answer: Option A
Solution:
Wages paid to a labour who was engaged in production activities can be termed as direct cost. A direct cost is a price that can be completely attributed to the production of specific goods or services.
58
Classification of cost is useful ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Classification of cost is useful to identify costs. All the costs of a business can be classified into production costs, administration costs, finance costs, selling costs, distribution costs, research and development costs.
59
The purpose of financial accounting is to provide information for ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
The purpose of financial accounting is to provide information for assessing the profitability and financial position of the firm. The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization.
60
Defectives ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Defectives can be rectified and mad made into good units. The defective work report should draw details relating to department, process, defective units quantity, normal and abnormal defects, the cost of rectification etc.