Costing MCQ Questions and Solutions with Explanations | Commerce

A. prime

B. works

C. production

D. Both A and B

A. $${\text{Margin of Safety}} = \frac{{{\text{Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$

B. $$\frac{{\text{P}}}{{\text{V}}}{\text{ratio}} = \frac{{{\text{Change in contribution}}}}{{{\text{Change in sales}}}} \times 100$$

C. $${\text{Breakeven point in units}} = \frac{{{\text{Fixed Cost}}}}{{{\text{Contribution per unit}}}}$$

D. $${\text{Required sales to earn the desired profits}} = \frac{{{\text{Desired Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$

A. Managerial efficiency

B. Solvency

C. Over-investment in stock

D. All of these

A. Direct material inventory

B. Work in-process inventory

C. Finished goodsinventory

D. Supplier inventory

A. Capacity variance, calendar variance and expenditure variance

B. Capacity variance, calendar variance and efficiency variance

C. Capacity variance, expenditure variance and efficiency variance

D. Calendar variance, expenditure variance and efficiency variance

A. Department-wise

B. Cost centre-wise

C. Function-wise

D. Product-wise

A. General price level method

B. Specific price level method

C. Current cost accounting method

D. Generally accepted accounting principles

A. Piece rate system

B. Time wage system

C. Both A and B

D. None of these

A. 3, 1, 2

B. 1, 3, 2

C. 3, 2, 1

D. 2, 1, 3

A. It helps in cash management

B. It helps in preparing balance sheet

C. It is legally compulsory

D. Both A and C