Costing MCQs

"Total cost of a product: Rs 10,000.
Profit: 25% on Selling Price
Profit is:"

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

Consider the following statements.
1. Marginal costing and absorption costing are the same.
2. For decision-making, absorption costing is more suitable than marginal costing.
3. Marginal costing is based on the distinction between fixed and variable costs.
Which of the statement(s) given above is/are correct?

Calculate the labour turnover rate according to replacement method from the following:
No of workers on the payroll:
- At the beginning of the month: 500
- At the end of the month: 600

During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited Ofthese, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme

Which of the following are possible causes of material price variance?
1. Change in market price.
2. Use of poor quality of material.
3. Inefficient buying.
4. Untimely buying.
5. Paying overtime for urgent work.
6. Use of substitute material of different prices.
Select the correct answer

Accounting information given by a company is
Total assets turnover = 3 times
Net profit margin = 10%
Total assets = Rs. 1,00,000
The net profit is

"Following information is available of XYZ Limited for quarter ended June, 20XX
Fixed cost Rs 5,00,000
Variable cost Rs 10 per unit
Selling price Rs 15 per unit
Output level 1,50,000 units
What will be amount of profit earned during the quarter using the marginal costing technique?"

Lower level of production leads to

"Calculate the prime cost from the following information:
Direct material purchased: Rs. 1,00,000.
Direct material consumed: Rs. 90,000.
Direct labour: Rs. 60,000.
Direct expenses: Rs. 20,000.
Manufacturing overheads: Rs. 30,000."