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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-6

Each section contains 100 MCQs on Costing .
71
Higher and accurate budgeted profit forecast of managers lead to
Discuss
Answer & Solution
Answer: Option A
Solution:
Higher and accurate budgeted profit forecast of managers lead to high incentive bonus. At the start of each fiscal period, the business owner prepares a budget based on projected revenue and the expenditure needed to realize that revenue.
72
starting point in operating budget is
Discuss
Answer & Solution
Answer: Option C
Solution:
Starting point in operating budget is revenue budget. Revenue budgets are forecasts of a company's sales revenues and expenditures, including capital-related expenditures.
73
Financial statements and budget plans of some companies are also called
Discuss
Answer & Solution
Answer: Option B
Solution:
Financial statements and budget plans of some companies are also called preformed statement.
74
Quantitative expression, of action plan by management of firm for a specified period of time is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Quantitative expression, of action plan by management of firm for a specified period of time is classified as budget. A budget is an estimation of revenue and expenses over a specified future period of time and is utilized by governments, businesses, and individuals.
75
Budget plan in many companies is also referred as
Discuss
Answer & Solution
Answer: Option A
Solution:
Budget plan in many companies is also referred as profit plan. Profit planning is the set of actions taken to achieve a targeted profit level. These actions involve the development of an interlocking set of budgets that roll up into a master budget.
76
Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of plan of a company, which quantities expectations of cash flows, income and financial position is known as budget. A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.
77
Practice, which makes target more achievable by underestimating revenues or overestimating cost is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Practice, which makes target more achievable by underestimating revenues or overestimating cost is called budgetary slack. Budgetary slack is the deliberate under-estimation of budgeted revenue or over-estimation of budgeted expenses.
78
An act of making sure, that all employees must understand goals is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
An act of making sure, that all employees must understand goals is classified as communication. Communication is simply the act of transferring information from one place, person or group to another. Every communication involves (at least) one sender, a message and a recipient.
79
Better administration of budget in budgeting plans require
Discuss
Answer & Solution
Answer: Option D
Solution:
Better administration of budget in budgeting plans require intelligent interpretations, participation and persuasion.
80
Non-financial and financial aspects of plan by company management, is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Non-financial and financial aspects of plan by company management, is classified as budget. Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget.