Costing MCQ Questions and Solutions with Explanations

81

Bin card is also known as-

A) Stores card B) Purchase card C) Store-keepers card D) Stock card

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Answer & Solution

Answer: Option C

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82

Consider the following.
1. Basic defensive and interval ratio
2. Current ratio
3. Super quick ratio
4. Quick ratio
Arrange these ratios in sequence to reflect the liquidity in descending order.

A) 2, 4, 3 and 1 B) 1, 2, 4 and 3 C) 4, 2, 3 and 1 D) 3, 4, 1 and 2

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Answer & Solution

Answer: Option A

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83

An increase in fixed costs will result, in which of the following?

A) A decrease in the contribution sales ratio B) A decrease in the contribution per point C) An increase in the break-even point sales level D) An increase in the margin of safety

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Answer & Solution

Answer: Option C

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84

AFC is computed by:

A) $$\frac{{{\text{TFC}}}}{{\text{Q}}}$$ B) $$\frac{{\text{Q}}}{{{\text{FC}}}}$$ C) $$\frac{{{\text{TFC}}}}{{{\text{FC}}}}$$ D) $$\frac{{{\text{FC}}}}{{{\text{TC}}}}$$

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Answer & Solution

Answer: Option A

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85

Match the items of List-I with those of List-II and indicate the correct canswer:

List-I	List-II
a. Postage stamp pricing	1. Equality of marginal and average cost
b. Loss leader	2. Constant average and marginal cost
c. Economic capacity	3. Product line pricing
d. Reserve capacity	4. Differential pricing

A) a-3. b-4, c-2, d-1 B) a-4, b-3, c-1, d-2 C) a-2, b-1, c-3, d-4 D) a-1, b-2, c-4, d-3

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Answer & Solution

Answer: Option B

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86

Match the following.

List-I	List-II
a. Excess of actual sales over the break-even sales volume	1. Contribution
b. Sum of fixed cost and profit	2. Cost volume profit analysis
c. Break-even chart	3. Unaffected by change in output
d. Break-even point	4. Margin of safety

A) a-4, b-1, c-2, d-3 B) a-4, b-3, c-2, d-1 C) a-4, b-3, c-1, d-2 D) a-3, b-1, c-4, d-2

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Answer & Solution

Answer: Option A

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87

The amount at any given volume of output by which aggregate costs are changed if the volume of output is increased or decreased by one unit, can be otherwise termed as:

A) Abnormal Cost B) Marginal Cost C) Fixed Cost D) Semi Variable Cost E) Sunk Cost

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Answer & Solution

Answer: Option B

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88

In the case of plant, the limiting factor may be:

A) insufficient capacity B) shortage of experienced salesmen C) general shortage of power D) shortage of materials

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Answer & Solution

Answer: Option A

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89

Continuous material check is a part of which of the following?

A) Annual material check B) Continuous inventory method C) A.B.C. Analysis D) Economic order quantity

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Answer & Solution

Answer: Option B

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90

The portion of earnings distributed among shareholders in the form of dividend is called

A) Proprietary ratio B) Earnings-yield ratio C) Payout ratio D) Retention ratio

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Answer & Solution

Answer: Option C

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Costing MCQ Questions and Solutions with Explanations | Commerce