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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-2

Each section contains 100 MCQs on Costing .
51
Which of the following will be affected by normal loss?
Discuss
Answer & Solution
Answer: Option D
Solution:
Cost of Good units will be affected by normal loss.
52
Actual loss is less than the predetermined normal loss, it is ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Actual loss is less than the predetermined normal loss, it is abnormal gain. If the actual loss is more than normal loss, then it is abnormal loss.
53
When output of earlier process is transferred at a profit to the subsequent process, it is ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.
54
100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
100 units are introduced in a process in which normal loss is 5% of input If actual output is 97 then there is 2 units of abnormal gain.
55
50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
VALUE OF ABNORMAL LOSS = (Total cost - scrap value)/No of unit produced × Abnormal Issue
=(80-(5×.25))/(50-5) × 5
=8.75
56
Abnormal process loss can be transferred to ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Abnormal process loss can be transferred to costing profit and loss a/c. Process account is to be credited by abnormal loss account with cost of material, labour and overhead equivalent to good units and the loss due to abnormal is transferred to Costing Profit and Loss Account.
57
When two products are simultaneously produced in a process and one of them has comparatively high value and other is of low value , the low value product is called __________.
Discuss
Answer & Solution
Answer: Option B
Solution:
When two products are simultaneously produced in a process and one of them has comparatively high value and other is of low value , the low value product is called by products.
58
If any by-product is produced and sold it is credited to ________.
Discuss
Answer & Solution
Answer: Option C
Solution:
If any by-product is produced and sold it is credited to process a/c.
59
Balance of abnormal gain a/c is transferred to ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Balance of abnormal gain a/c is transferred to costing profit and loss a/c. Abnormal loss is transferred to the costing P&L.
60
Inter process profits are ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Inter process profits are debited to respective process a/c. Inter process profit represents the value added to the output over its cost, while being transferred from one process to another. Since the value addition is without incurring any cost, it would amount to or result in an amount of profit equal to the value addition.