Costing MCQs
Practice free Costing multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 1419 questions — no login required.
Question 1405hard
Consider the following.
1. Basic defensive and interval ratio
2. Current ratio
3. Super quick ratio
4. Quick ratio
Arrange these ratios in sequence to reflect the liquidity in descending order.
1. Basic defensive and interval ratio
2. Current ratio
3. Super quick ratio
4. Quick ratio
Arrange these ratios in sequence to reflect the liquidity in descending order.
Question 1406hard
Match the following.
| List-I | List-II |
| a. Statement of changes in working capital | 1. Cash flow statement |
| b. Deferred tax | 2. Fixed assets |
| c. Three activities | 3. Fund flow statement |
| d. Impairment loss | 4. Balance sheet |
Question 1407hard
Which of the following relate to measures of non-financial performance of a concern?
1. Customer satisfaction
2. Business process improvement
3. Economic value added
4. Learning organisation
Select the correct answer
1. Customer satisfaction
2. Business process improvement
3. Economic value added
4. Learning organisation
Select the correct answer
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Question 1408hard
Profits can be increased by
1. decreasing the selling price per unit.
2. increasing the selling price per unit.
3. decreasing the volume of sales.
4. increasing the volume of sales.
5. decreasing the fixed or variable expenses.
6. increasing the fixed or variable expenses.
7. giving more weightage for products having higher P/V ratio.
8. giving less weightage for products having higher P/V ratio.
Select the correct answer
1. decreasing the selling price per unit.
2. increasing the selling price per unit.
3. decreasing the volume of sales.
4. increasing the volume of sales.
5. decreasing the fixed or variable expenses.
6. increasing the fixed or variable expenses.
7. giving more weightage for products having higher P/V ratio.
8. giving less weightage for products having higher P/V ratio.
Select the correct answer
Question 1409hard
"After inviting tenders for supply of raw materials, two quotations are received as follows—
Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"
Supplier P Rs 2.20 per unit, Supplier Q Rs 2.10 per unit plus Rs 2,000 fixed charges irrespective of the units ordered. The order quantity for which the purchase price per unit will be the same—"
Question 1410hard
Which of the following statements are correct?
I. Inventory includes raw materials, finished goods and work-in-progress.
II. Inventory is a part of the working capital.
III. Inventory includes goods likely to be purchased.
I. Inventory includes raw materials, finished goods and work-in-progress.
II. Inventory is a part of the working capital.
III. Inventory includes goods likely to be purchased.
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Question 1411hard
Match the items of List-I with the items of List-Il and indicate the correct answer.
| List-I | List-II |
| a. Debtors turnover ratio | 1. Solvency ratio |
| b. Proprietary ratio | 2. Liquidity ratio |
| c. Operating ratio | 3. Activity ratio |
| d. Acid test ratio | 4. Profitability ratio |
Question 1412hard
Which of the following statement is true?
Statement 1: Financial statements are prepared on the basis of accounting principles.
Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.
Statement 1: Financial statements are prepared on the basis of accounting principles.
Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.
Question 1413hard
Which of the following are the methods of determining cost behaviour?
I. High and low point method
II. Least square regression method
III. Accounting or analytical approach
IV. Non-parametric method
Choose the correct answer from the options given below
I. High and low point method
II. Least square regression method
III. Accounting or analytical approach
IV. Non-parametric method
Choose the correct answer from the options given below