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

81.
Bin card is also known as-

A. Stores card

B. Purchase card

C. Store-keepers card

D. Stock card

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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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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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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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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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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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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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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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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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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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1 2 3 4 5 6 7 8 9 10

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

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

Costing MCQ Questions and Solutions with Explanations | Commerce

81. Bin card is also known as-

Answer & Solution

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.

Answer & Solution

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

Answer & Solution

84. AFC is computed by:

Answer & Solution

Answer & Solution

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

Answer & Solution

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:

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Read More Section(Costing)

81.
Bin card is also known as-

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.

83.
An increase in fixed costs will result, in which of the following?

84.
AFC is computed by:

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

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:

88.
In the case of plant, the limiting factor may be:

89.
Continuous material check is a part of which of the following?

90.
The portion of earnings distributed among shareholders in the form of dividend is called