Costing MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14

11.
ABC analysis is an inventory control technique in which:

A. Inventory levels are maintained

B. Inventory is classified into A, B and C category with A being the highest quantity, lowest value

C. Inventory is classified into A, B and C Category with A being the lowest quantity, highest value

D. Either b or c

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12.
Which one out of the following is not an inventory valuation method?

A. FIFO

B. LIFO

C. Weighted Average

D. EOQ

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13.
In case of rising prices (inflation), FIFO method will:

A. provide lowest value of closing stock and profit

B. provide highest value of closing stock and profit

C. provide highest value of closing stock but lowest value of profit

D. provide highest value of profit but lowest value of closing stock

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14.
In case of rising prices (inflation), LIFO will:

A. provide lowest value of closing stock and profit

B. provide highest value of closing stock and profit

C. provide highest value of closing stock but lowest value of profit

D. provide highest value of profit but lowest value of closing stock

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15.
"Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days"

A. 5600 units

B. 800 units

C. 1400 units

D. 200 units

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16.
"Calculate EOQ (approx) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs 10 per order
Purchase price: Rs 100 per unit
Carrying cost: 5%"

A. 310

B. 400

C. 290

D. 300

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17.
"Calculate the value of closing stock from the following according to FIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"

A. Rs. 765

B. Rs. 805

C. Rs. 786

D. Rs. 700

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18.
"Calculate the value of closing stock from the following according to LIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"

A. Rs. 765

B. Rs. 805

C. Rs. 786

D. Rs. 700

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19.
"Calculate the value of closing stock from the following according to Weighted Average method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 450

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"

A. Rs. 765

B. Rs. 805

C. Rs. 786

D. Rs. 700

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20.
Cost of abnormal wastage is:

A. Charged to the product cost

B. Charged to the profit & loss account

C. charged partly to the product and partly profit & loss account

D. not charged at all

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Costing MCQ Questions and Solutions with Explanations | Commerce

11. ABC analysis is an inventory control technique in which:

Answer & Solution

12. Which one out of the following is not an inventory valuation method?

Answer & Solution

13. In case of rising prices (inflation), FIFO method will:

Answer & Solution

14. In case of rising prices (inflation), LIFO will:

Answer & Solution

15. "Calculate Re-order level from the following: Consumption per week: 100-200 units Delivery period: 14-28 days"

Answer & Solution

16. "Calculate EOQ (approx) from the following details: Annual Consumption: 24000 units Ordering cost: Rs 10 per order Purchase price: Rs 100 per unit Carrying cost: 5%"

Answer & Solution

17. "Calculate the value of closing stock from the following according to FIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units"

Answer & Solution

18. "Calculate the value of closing stock from the following according to LIFO method: 1st January, 20XX: Opening balance: 50 units @ Rs 4 Receipts: 5th January, 20XX: 100 units @ Rs 5 12th January, 20XX: 200 units @ Rs 4.50 Issues: 2nd January, 20XX: 30 units 18th January, 20XX: 150 units"

Answer & Solution

Answer & Solution

20. Cost of abnormal wastage is:

Answer & Solution

Read More Section(Costing)

11.
ABC analysis is an inventory control technique in which:

12.
Which one out of the following is not an inventory valuation method?

13.
In case of rising prices (inflation), FIFO method will:

14.
In case of rising prices (inflation), LIFO will:

15.
"Calculate Re-order level from the following:
Consumption per week: 100-200 units
Delivery period: 14-28 days"

16.
"Calculate EOQ (approx) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs 10 per order
Purchase price: Rs 100 per unit
Carrying cost: 5%"

17.
"Calculate the value of closing stock from the following according to FIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"

18.
"Calculate the value of closing stock from the following according to LIFO method:
1st January, 20XX: Opening balance: 50 units @ Rs 4

Receipts:
5th January, 20XX: 100 units @ Rs 5
12th January, 20XX: 200 units @ Rs 4.50

Issues:
2nd January, 20XX: 30 units
18th January, 20XX: 150 units"

20.
Cost of abnormal wastage is: