Costing MCQ Questions and Solutions with Explanations | Commerce

A. Ascertainment of Cost

B. Determination of Selling Price

C. Cost Control and Cost reduction

D. Assisting Shareholders in decision making

A. Where the manager has the responsibility of generating and maximising profits

B. Which is concerned with earning an adequate Return on Investment

C. Both of the above

D. Which manages cost

A. Cost Centres only

B. Profit Centres only

C. Investment Centres only

D. Cost Centres, Profit Centres and Investment Centres

A. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed

B. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control

C. Centres having the responsibility of generating and maximising profits

D. Centres concerned with earning an adequate return on investment

A. Which changes in total in proportion to changes in output

B. which is partly fixed and partly variable in relation to output

C. Which do not change in total during a given period despite changes in output

D. which remains same for each unit of output

A. can not

B. can

C. may or may not

D. must

A. Material only

B. Labour only

C. Expenses only

D. Material, Labour and expenses

A. Cost normally incurred at a given level of output

B. Cost not normally incurred at a given level of output

C. Cost which is charged to customer

D. Cost which is included in the cost of the product

A. Raw material, WIP

B. Raw material, Finished goods

C. WIP, Finished goods

D. Finished goods, Saleable goods

A. relevant for decision making

B. Not relevant for decision making

C. cost to be incurred in future

D. future costs