Costing MCQ Questions and Solutions with Explanations

81

The difference between fixed and variable cost has a special significance in the preparation of:

A) flexible budget B) master budget C) cash budget D) sales budget

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Answer & Solution

Answer: Option A

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82

Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be . . . . . . . .

A) abnormal loss B) normal loss C) abnormal gain D) normal gain

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Answer & Solution

Answer: Option C

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83

Management by exception is exercising control over . . . . . . . .

A) Costs B) Favourable items C) Unfavourable items D) All of these

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Answer & Solution

Answer: Option C

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84

What is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?

A) 2 times B) 3 times C) 4 times D) 5 times

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Answer & Solution

Answer: Option C

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85

Activity Ratio =

A) $$\frac{{{\text{Number of actual working days in a period}}}}{{{\text{Number of working days in the budget period}}}} \times 100$$ B) $$\frac{{{\text{Actual hours worked}}}}{{{\text{Budgeted hours}}}} \times 100$$ C) $$\frac{{{\text{Standard hours for actual production}}}}{{{\text{Actual hours worked}}}} \times 100$$ D) $$\frac{{{\text{Standard hours for actual production}}}}{{{\text{Budgeted standard hours}}}} \times 100$$

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Answer & Solution

Answer: Option D

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86

The system which gives a continuous information regarding quantum and value of inventory is known as:

A) Re-order point valuation method B) Periodic inventory method C) Perpetual inventory method D) A, B, C analysis technique

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Answer & Solution

Answer: Option C

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87

A process costing system is used by a company that

A) produces heterogeneous products B) produces items by special request of customers C) produces homogeneous products D) accumulates costs by job

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Answer & Solution

Answer: Option C

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88

. . . . . . . . is a post mortem of past costs.

A) Financial accounting B) Cost accounting C) Both A and B D) None of these

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Answer & Solution

Answer: Option A

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89

. . . . . . . . is one which can be conveniently identified with and charged to a particular unit of cost.

A) Direct cost B) Indirect cost C) Overhead D) None of these

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Answer & Solution

Answer: Option A

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90

Cost accounting provides data for managerial . . . . . . . .

A) decision making B) recruitment C) retrenchment D) None of the above

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Answer & Solution

Answer: Option A

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Costing MCQ Questions and Solutions with Explanations | Commerce