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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-8 section-2

Each section contains 100 MCQs on Costing .
71
Process a/c is ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Process a/c is nominal a/c. A process account which is similar to a ledger account in financial accounting is an equivalent of a nominal account.
72
Profit to be transferred to profit and loss a/c, if the contract is complete to the extent of only 20% is ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Profit to be transferred to profit and loss a/c, if the contract is complete to the extent of only 20% is nil.
73
Operating cost is usually ascertained through ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
Operating cost is usually ascertained through a statement. Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis.
74
The physical distance covered by a vehicle is measured in terms of ________.
Discuss
Answer & Solution
Answer: Option D
Solution:
The physical distance covered by a vehicle is measured in terms of running kilometers or miles.
75
Insurance and garage rent is ________.
Discuss
Answer & Solution
Answer: Option A
Solution:
Insurance and garage rent is fixed charges. A fixed charge is any type of expense that recurs on a regular basis, regardless of the volume of business.
76
Which of the following item of expenses will not appear in cost accounting.
Discuss
Answer & Solution
Answer: Option D
Solution:
Loss on sale of fixed assets will not appear in cost accounting. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
77
The term cost refers to ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
The term cost refers to the value of sacrifice made to acquire goods or services. The price of product sold or services rendered.
78
Cost accounting differs from financial accounting in respect of ________.
Discuss
Answer & Solution
Answer: Option B
Solution:
Cost accounting differs from financial accounting in respect of ascertainment of cost. Cost Accounting refers to that branch of accounting which deals with costs incurred in the production of units of an organization. On the other hand, financial accounting refers to the accounting concerned with recording financial data of an organization, in order to exhibit exact position of the business.
79
Which method of costing is best suited for interior decoration.
Discuss
Answer & Solution
Answer: Option D
Solution:
Job costing is best suited for interior decoration. Job costing is defined as a method of recording the costs of a manufacturing job, rather than process.
80
When cash is received from contractee which a/c should be credited.
Discuss
Answer & Solution
Answer: Option D
Solution:
When cash is received from contractee Contractee a/c should be credited.