Costing MCQs

Question 1

Match the items of the following two lists: List-I List-II a. Statement of changes in working capital 1. Cash flow statement b. Deferred tax 2. Fixed assets c. Three activities 3. Funds flow statement d. Impairment loss 4. Balance sheet

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 2

Cost of production is

Accepted Answer

Factory cost + Administrative overheads

Answer

Prime cost + Factory overheads

Answer

Direct cost + Indirect expenses

Answer

Prime cost + Administrative overheads

Question 3

Under inflationary conditions a higher value of inventory is assigned under:

Accepted Answer

LIFO method

Answer

FIFO method

Answer

Weighted average method

Answer

None of the above

Question 4

The cause of increase in cost per unit under process costing is

Accepted Answer

Normal wastage

Answer

Abnormal wastage

Answer

Abnormal gain

Answer

Normal gain

Question 5

Under the inflationary conditions, the value of closing stock will be highest under the:

Accepted Answer

FIFO method

Answer

LIFO method

Answer

Weighted Average method

Answer

None of the above

Question 6

According to which of the following methods of valuation, issuances are linked to current economic prices?

Accepted Answer

LIFO method

Answer

FIFO method

Answer

HIFO method

Answer

Weighted average value method

Question 7

. . . . . . . . is the oldest branch of accounting.

Accepted Answer

Financial accounting

Answer

Cost accounting

Answer

Management accounting

Answer

None of these

Question 8

Cost accounting disclose . . . . . . . .

Accepted Answer

profit/loss of a product, job or service

Answer

the financial position

Answer

effect and impact of cost on business

Answer

None of these

Question 9

The collection of debtors

Accepted Answer

Decreases the current ratio

Answer

Increases the current ratio

Answer

Does not affect the current ratio

Answer

None of the above