Costing MCQs

Question 1

Where actual loss in a process is less than the anticipated loss, the difference between the two is considered to be . . . . . . . .

Accepted Answer

abnormal gain

Answer

abnormal loss

Answer

normal loss

Answer

normal gain

Question 2

Management by exception is exercising control over . . . . . . . .

Accepted Answer

Unfavourable items

Answer

Costs

Answer

Favourable items

Answer

All of these

Question 3

What is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?

Accepted Answer

4 times

Answer

2 times

Answer

3 times

Answer

5 times

Question 4

Activity Ratio =

Accepted Answer

$$\frac{{{	ext{Standard hours for actual production}}}}{{{	ext{Budgeted standard hours}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Number of actual working days in a period}}}}{{{	ext{Number of working days in the budget period}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Actual hours worked}}}}{{{	ext{Budgeted hours}}}} 	imes 100$$

Answer

$$\frac{{{	ext{Standard hours for actual production}}}}{{{	ext{Actual hours worked}}}} 	imes 100$$

Question 5

The system which gives a continuous information regarding quantum and value of inventory is known as:

Accepted Answer

Perpetual inventory method

Answer

Re-order point valuation method

Answer

Periodic inventory method

Answer

A, B, C analysis technique

Question 6

A process costing system is used by a company that

Accepted Answer

produces homogeneous products

Answer

produces heterogeneous products

Answer

produces items by special request of customers

Answer

accumulates costs by job

Question 7

. . . . . . . . is a post mortem of past costs.

Accepted Answer

Financial accounting

Answer

Cost accounting

Answer

Both A and B

Answer

None of these

Question 8

. . . . . . . . is one which can be conveniently identified with and charged to a particular unit of cost.

Accepted Answer

Direct cost

Answer

Indirect cost

Answer

Overhead

Answer

None of these

Question 9

Cost accounting provides data for managerial . . . . . . . .

Accepted Answer

decision making

Answer

recruitment

Answer

retrenchment

Answer

None of the above