Costing MCQs

Question 1

For a transport concern like Bus Transport, the most appropriate method of costing technique will be:

Accepted Answer

Operating Costing

Answer

Unit Costing

Answer

Standard Costing

Answer

Job Costing

Question 2

The total of all direct expenses is known as . . . . . . . . cost.

Accepted Answer

prime

Answer

works

Answer

production

Answer

Both A and B

Question 3

Which of the following is not correct?

Accepted Answer

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

Answer

$${	ext{Margin of Safety}} = \frac{{{	ext{Profit}}}}{{\frac{{	ext{P}}}{{	ext{V}}}{	ext{ratio}}}}$$

Answer

$$\frac{{	ext{P}}}{{	ext{V}}}{	ext{ratio}} = \frac{{{	ext{Change in contribution}}}}{{{	ext{Change in sales}}}} 	imes 100$$

Answer

$${	ext{Breakeven point in units}} = \frac{{{	ext{Fixed Cost}}}}{{{	ext{Contribution per unit}}}}$$

Question 4

What does a low stock turnover indicates?

Accepted Answer

Over-investment in stock

Answer

Managerial efficiency

Answer

Solvency

Answer

All of these

Question 5

The cost of material that is not completely processed, would be found in which of the following inventory account on the balance sheet?

Accepted Answer

Work in-process inventory

Answer

Direct material inventory

Answer

Finished goodsinventory

Answer

Supplier inventory

Question 6

Volume variance is divided into . . . . . . . .

Accepted Answer

Capacity variance, calendar variance and efficiency variance

Answer

Capacity variance, calendar variance and expenditure variance

Answer

Capacity variance, expenditure variance and efficiency variance

Answer

Calendar variance, expenditure variance and efficiency variance

Question 7

Responsibility accounting aims at collecting and reporting costing information

Accepted Answer

Cost centre-wise

Answer

Department-wise

Answer

Function-wise

Answer

Product-wise

Question 8

Which of the following methods of inflation accounting has been proposed by Sandilands Committee of U.K.?

Accepted Answer

Current cost accounting method

Answer

General price level method

Answer

Specific price level method

Answer

Generally accepted accounting principles

Question 9

. . . . . . . . is most suitable when quality of work is of prime importance.

Accepted Answer

Time wage system

Answer

Piece rate system

Answer

Both A and B

Answer

None of these