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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-6

Each section contains 100 MCQs on Costing .
51
An arrangement of line of authority within company is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management.
52
Variance used by managers to check whether company has performed well and properly implemented strategies is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Variance used by managers to check whether company has performed well and properly implemented strategies is considered as performance evaluation. Performance Evaluation is defined as a formal and productive procedure to measure an employee's work and results based on their job responsibilities.
53
Manager who is responsible only for revenues of company can be categorized under the
Discuss
Answer & Solution
Answer: Option D
Solution:
Manager who is responsible only for revenues of company can be categorized under the revenue center. A revenue center is a distinct operating unit of a business that is responsible for generating sales.
54
System which measures budget, action and plan of each responsibility center is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
System which measures budget, action and plan of each responsibility center is known as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.
55
Significant feature of Kaizen Budgeting is
Discuss
Answer & Solution
Answer: Option A
Solution:
Significant feature of Kaizen Budgeting is employee suggestion. Kaizen budgeting takes the concept of continual improvement and applies it to budgets and budget forecasting.
56
Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers can be classified as kaizen budgeting. Kaizen budgeting takes the concept of continual improvement and applies it to budgets and budget forecasting.
57
Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Part of master budget, which covers capital expenditures, budgeted statement of cash flows and balance sheet is classified as financial budget.
58
Third step in developing operating budget is
Discuss
Answer & Solution
Answer: Option C
Solution:
Third step in developing operating budget is making predictions about future. An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts.
59
Cost influences by responsibility center manager who is considered as
Discuss
Answer & Solution
Answer: Option D
Solution:
Cost influences by responsibility center manager who is considered as controllable cost. Controllable costs are those costs that can be altered in the short term. More specifically, a cost is considered to be controllable if the decision to incur it resides with one person.
60
If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Manufacturing budget = Indirect manufacturing labour + Power cost + Maintenance and supplies
= $20000 + $5000 + $10000 = $35,000