Costing MCQs

Question 1

Which of the following is not an example of financing activities with reference to cash flow statement?

Accepted Answer

Sale of fixed assets

Answer

Repayment of bank loan

Answer

Interest on debentures or dividend paid

Answer

Cash proceeds from public deposits

Question 2

. . . . . . . . is the smallest segment of activity or area or responsibility for which costs are accumulated.

Accepted Answer

Cost centre

Answer

Cost object

Answer

Cost driver

Answer

None of the above

Question 3

Economic order quantity analysis is used for-

Accepted Answer

Inventory control

Answer

Ratio analysis

Answer

Budgetory control

Answer

Sales budgeting

Question 4

Which of the following involves receiving a required inventory item at the exact time needed?

Accepted Answer

JIT

Answer

PERT

Answer

FOB

Answer

ABC

Question 5

Labour rate variance is computed by multiplying the:

Accepted Answer

None of the above

Answer

Standard labour rate with the difference between standard labour hours and actual labour hours

Answer

Actual labour hours with the difference between standard labour hours and actual labour hours

Answer

Actual labour rate with the difference between standard labour rate and actual labour hours

Question 6

Market price method is considered to be the best method when . . . . . . . .

Accepted Answer

quotations have to be sent

Answer

prices fluctuate

Answer

materials are subject to natural wastage

Answer

None of these

Question 7

Bin card is a record of . . . . . . . . only.

Accepted Answer

quantity

Answer

cost

Answer

value

Answer

expense

Question 8

The full form of CIF is:

Accepted Answer

Cost, Insurance and Freight

Answer

Cost, Investment and Freight

Answer

Company, Insurance and Freight

Answer

Company, Investment and Freight

Question 9

Process costing is used in which industry?

Accepted Answer

Both A and B

Answer

Manufacturing industries

Answer

Mining industries

Answer

None of the above