Costing MCQ Questions and Solutions with Explanations

71

Cost accounting disclose . . . . . . . .

A) the financial position B) profit/loss of a product, job or service C) effect and impact of cost on business D) None of these

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Answer & Solution

Answer: Option B

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72

The collection of debtors

A) Decreases the current ratio B) Increases the current ratio C) Does not affect the current ratio D) None of the above

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Answer & Solution

Answer: Option A

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73

Last in first out method is suitable in times of . . . . . . . .

A) rising prices B) falling prices C) fluctuating prices D) None of these

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Answer & Solution

Answer: Option A

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74

The internal factors affecting the wage mix include:
(i) Relative worth of the job
(ii) Regional wage rates
(iii) Employer's ability to pay
(iv) Manpower market conditions

A) (i), (ii) and (iii) B) (i) and (iii) C) (ii), (iii) and (iv) D) All of the above

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Answer & Solution

Answer: Option B

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75

If 50% of the contract is completed, then the following amount of profit is normally credited

A) $${\text{Earned profit}} \times \frac{{50}}{{100}}$$ B) $${\text{Earned profit}} \times \frac{3}{2} \times \frac{{{\text{Cash received}}}}{{{\text{Contract value}}}}$$ C) $${\text{Earned profit}} \times \frac{2}{3} \times \frac{{{\text{Cash received}}}}{{{\text{Contract value}}}}$$ D) $${\text{Earned profit}} \times \frac{2}{3} \times \frac{{{\text{Cash received}}}}{{{\text{Certified value}}}}$$

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Answer & Solution

Answer: Option D

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76

If sales revenue at 60% capacity is Rs. 4,50,000, sales revenue at 70% capacity on a fall in selling price by 5% would be?

A) Rs. 4,98,750 B) Rs. 7,50,000 C) Rs. 5,25,000 D) Rs. 7,12,500

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Answer & Solution

Answer: Option A

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77

Assertion (A): Debt-equity ratio indicates the long-term solvency of a company.
Reason (R): It measures the ability of the company to pay-off its long-term liabilities.
Select the correct answer.

A) Both (A) and (R) are correct, and (R) is the correct reason for (A) B) Both (A) and (R) are correct, but (R) does not explain (A) correctly C) (A) is correct, but (R) is incorrect D) (A) is incorrect, but (R) is correct

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Answer & Solution

Answer: Option A

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78

Where raw material is to pass certain stages, before it is converted into finished goods, the method of costing used is . . . . . . . .

A) Job costing B) Operating costing C) Process costing D) Both B and C

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Answer & Solution

Answer: Option C

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79

The total variable cost . . . . . . . . in total proportion to output.

A) increases B) does not increase C) decreases D) None of these

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Answer & Solution

Answer: Option A

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80

Under which of the cost differences international trade would not take place?

A) Equal B) Comparative C) Absolute D) All of these

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Answer & Solution

Answer: Option A

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Costing MCQ Questions and Solutions with Explanations | Commerce