Costing MCQs

Question 1

Labour cost is the second element of ________.

Accepted Answer

cost

Answer

profit

Answer

sales

Answer

task

Question 2

Number of methods available for calculation of Labour turnover is ________.

Accepted Answer

three

Answer

two

Answer

four

Answer

five

Question 3

Merricks multiple piece rate system has _______.

Accepted Answer

three rates

Answer

two rates

Answer

four rates

Answer

five rates

Question 4

Overhead is also known as ________.

Accepted Answer

ongoing cost

Answer

basic cost

Answer

extra cost

Answer

chargeable expenses

Question 5

Reorder level = ________.

Accepted Answer

maximum consumption X maximum reorder period

Answer

maximum level - minimum level

Answer

minimum consumption x minimum reorder period

Answer

normal consumption X normal reorder period

Question 6

Overhead can be classified according to function-wise as ________.

Accepted Answer

manufacturing o/h, administration o/h and selling & distribution o/h

Answer

fixed o/h, variable o/h and semi-variable o/h

Answer

controllable o/h and uncontrollable o/h

Answer

past cost and future cost

Question 7

Allotment of overhead incurred for a particular cost centre to that specific cost centre is ________.

Accepted Answer

allocation

Answer

allotment

Answer

primary distribution

Answer

secondary distribution

Question 8

The process of setting standards and comparing actual performance with standards with a view to control the cost is ________.

Accepted Answer

cost control

Answer

cost reduction

Answer

cost allocation

Answer

cost ascertainment

Question 9

Under ABC method of material control, the material are classified according to __________.

Accepted Answer

its value

Answer

its usage

Answer

its nature

Answer

its availability