Costing MCQs

Question 1

Variable cost per unit . . . . . . . .

Accepted Answer

remains constant

Answer

varies

Answer

decreases

Answer

increases

Question 2

Cost Accountancy is the science, art and . . . . . . . . of a cost accountant.

Accepted Answer

practice

Answer

exercise

Answer

hard work

Answer

effort

Question 3

A responsibility centre in which manager is responsible for cost only, is known as

Accepted Answer

Cost Centre

Answer

Profit Centre

Answer

Investment Centre

Answer

All of these

Question 4

In . . . . . . . . costing where standardized goods or services result from a sequence of repetitive and more or less continuous operations to which costs are collected and averaged over the units produced during the year:

Accepted Answer

Operation

Answer

Multiple

Answer

Process

Answer

Single

Question 5

Tender for construction is an

Accepted Answer

Estimation of cost

Answer

Estimation of profit

Answer

Estimation of selling price

Answer

Estimation of work

Question 6

. . . . . . . . is an example of short-term budget.

Accepted Answer

Both A and C

Answer

Cash budget

Answer

Capital expenditure budget

Answer

Material budget

Question 7

Stock Adjustment Account is debited with . . . . . . . . and credited with . . . . . . . .

Accepted Answer

shortage of stock, surplus

Answer

surplus, shortage of stock

Answer

excess, loss

Answer

None of these

Question 8

The process of explaining the meaning, significance, and relationship between two financial factors is called

Accepted Answer

Interpretation

Answer

Summarization

Answer

Analysis

Answer

None of the above

Question 9

Efficiency Ratio =

Accepted Answer

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

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

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