Costing MCQs

Question 1

Match the group of List-I with those of List-II and choose the correct answer List-I List-II a. Direct wages 1. Factory expenditure b. Packing 2. Prime cost c. Depreciation 3. Sales cost d. Legal expenses 4. Office expenses

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 2

In the context of standard costing; basic standard is established for

Accepted Answer

current period

Answer

short period

Answer

indefinite period

Answer

predefined period

Question 3

Cost of production is equal to . . . . . . . .

Accepted Answer

works cost plus administration overheads

Answer

prime cost plus works cost

Answer

prime cost plus works overhead

Answer

works overhead plus administration overheads

Question 4

When the actual loss is more than the estimated loss, the difference between the two is considered to be . . . . . . . .

Accepted Answer

abnormal loss

Answer

normal loss

Answer

loss

Answer

None of these

Question 5

Total Labour cost variance =

Accepted Answer

Standard cost of labour - actual cost of labour

Answer

Standard rate (standard time for actual output - actual time worked)

Answer

Standard rate (standard time for actual output - actual time paid for)

Answer

Actual time taken (standard rate - actual rate)

Question 6

FIFO and LIFO are valuation method of-

Accepted Answer

Raw material to be issued

Answer

Fixed assets

Answer

Investments

Answer

All of these

Question 7

Primary packing is an item of . . . . . . . .

Accepted Answer

prime cost

Answer

selling overheads

Answer

distribution overheads

Answer

factory overheads

Question 8

Kaizen costing is applied to a product that is

Accepted Answer

under production

Answer

produced

Answer

targeted to produce

Answer

sold to customer

Question 9

An appropriate choice to invest in manpower or other resources is made through

Accepted Answer

Human resource accounting

Answer

Creative accounting

Answer

Financial accounting

Answer

Cost accounting