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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-7

Each section contains 100 MCQs on Costing .
51
In accounting system, a document which consists of all assigned cost for specific job is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
In accounting system, a document which consists of all assigned cost for specific job is classified as job cost record and job cost sheet.
52
Manufacturing overhead cost allocated to individual jobs is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Manufacturing overhead cost allocated to individual jobs is classified as manufacturing overhead allocated and manufacturing overhead applied.
53
If budgeted annual indirect cost is $850000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Budgeted indirect cost = Budgeted annual indirect cost ÷ Budgeted annual quantity of cost allocation base
= $850000 ÷ $7500 = 113.33 per piece
54
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as
Discuss
Answer & Solution
Answer: Option C
Solution:
Costing and allocating situation, in which indirect cost allocated amount is less than actually incurred amount is known as under allocated indirect cost. Overhead allocation is the apportionment of indirect costs to produced goods.
55
Systematic way of linking group of indirect cost to a cost object is classified as
Discuss
Answer & Solution
Answer: Option D
Solution:
Systematic way of linking group of indirect cost to a cost object is classified as cost allocation base. An allocation base is the basis upon which an entity allocates its overhead costs.
56
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as under allocated indirect cost because the allocated amount is less than actual amount.
57
If an actual indirect cost incur is $35000 and indirect cost allocated is $43000, then under allocated indirect cost will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Under allocated indirect cost = Actual indirect cost incur - Indirect cost allocated = $35000 - $43000 = -$8000
58
If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labour hours, then overhead rate will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation
= $225000 ÷ 2500 = $90
59
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Costing technique, in which actual direct rates are multiplied to quantity of direct cost inputs is classified as actual costing. Actual costing is the recording of product costs based on the following factors: Actual cost of materials.
60
In normal costing, manufacturing overhead allocated is also called
Discuss
Answer & Solution
Answer: Option A
Solution:
In normal costing, manufacturing overhead allocated is also called manufacturing overhead applied. Manufacturing overhead is all indirect costs incurred during the production process. This overhead is applied to the units produced within a reporting period.