Costing MCQ Questions and Solutions with Explanations | Commerce

A. Work-in-progress

B. Profit and loss account

C. Miscellaneous account

D. None of these

A. a-2, b-3, c-4, d-1

B. a-3, b-4, c-1, d-2

C. a-4, b-3, c-2, d-1

D. a-2, b-1, c-4, d-3

A. cost driver

B. cost behaviour

C. cost centre

D. None of these

A. a flexible budget considers only variable costs but a static budget considers all costs

B. a flexible budgets allows management latitude in meeting goals, whereas static budget is based on fixed standards

C. a flexible budget is applicable for a single department only but a static budget for entire production facility

D. a flexible budget can be prepared for any production level within a relevant range but a static budget is based on one specific level of production

A. Current assets - Stock - Prepaid expenses

B. Current assets + Stock + Prepaid expenses

C. Current assets + Prepaid expenses

D. None of the above

A. I, II and IV

B. I, III, and IV

C. II, III and IV

D. I, II and III

A. Factory cost - Prime cost

B. Factory cost + Prime cost

C. Prime cost + Direct cost

D. Factory cost + Direct expenses

A. Material yield variance

B. Material cost variance

C. Material price variance

D. Material quantity variance

A. Right to revoke the agency

B. Right to charge abnormal fee for the agency

C. Right to repudiate the agency

D. Right to recover the secret profits from the agent

E. Right to enter into a contract

A. Cost of production + opening stock of finished goods - closing stock of finished goods

B. Prime cost + factory overhead cost + work in progress at the beginning - works in progress closing

C. Opening stock of raw materials + purchase of raw materials - closing stock of raw materials

D. Cost of production + administrative expenses + work in progress closing - work in progress beginning

E. Opening stock of work in progress + opening stock of finished goods + works expenses - closing stock of finished goods