Costing MCQs

Question 1

If the beginning balance in the raw materials inventory account for the month was Rs. 25,000, the ending balance was Rs. 22,000 and material used during the month was Rs. 1,30,000. What is the amount of materials purchased during the month?

Accepted Answer

Rs. 1,27,000

Answer

Rs. 1,77,000

Answer

Rs. 1,30,000

Answer

Rs. 1,33,000

Question 2

Abnormal cost is . . . . . . . .

Accepted Answer

uncontrollable

Answer

controllable

Answer

fixed

Answer

None of these

Question 3

Assertion (A): A high operating ratio indicates a favourable position. Reason (R): A high operating ratio leaves a high margin to meet non-operating expenses.

Accepted Answer

Both (A)and (R) are incorrect

Answer

Both (A) and (R) are correct, and (R) correctly explains (A)

Answer

Both (A) and (R) are correct, but (R) does not explain (A)

Answer

(A) is correct, but (R) is incorrect

Question 4

In ratio analysis, 'time series analysis' refers to

Accepted Answer

the comparison of financial ratios over a period of time to access the direction of change and the financial performance of the firm

Answer

making a time series of various ratio to assess the firm's profitability

Answer

a graphical comparison of the firm's sources of finance

Answer

a comparison of time values for various ratios of the firm

Question 5

While calculating gross profit, if net profit is given, then,

Accepted Answer

It can be converted into gross profit by adding interest to it

Answer

It can be converted into gross profit by adding indirect expenses to it

Answer

Both A and B

Answer

None of the above

Question 6

Match the following. List-I (Variances) List-II (Causes) a. Overhead efficiency variance 1. Power failure b. Overhead volume variance 2. Appointing low grade employees c. Labour idle time variance 3. Poor working condition d. Labour efficiency variance 4. Working days being more or less than budgeted

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 7

. . . . . . . . is the assessment of the relative worth of jobs within a company whereas . . . . . . . . is the assessment of the relative worth of man behind the job.

Accepted Answer

Job evaluation, merit rating

Answer

Job analysis, job evaluation

Answer

Job analysis, merit rating

Answer

None of these

Question 8

What is Economic Order Quantity?

Accepted Answer

Optimum order size

Answer

Cost of an order

Answer

Cost of stock

Answer

Reorder level

Question 9

An estimated price, which is expected to be paid by customers for particular market offering is classified as

Accepted Answer

target price

Answer

target cost

Answer

outsource price

Answer

offshore price