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 1414easy
Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as
Question 1415hard
Match the following.
| List-I (Variances) | List-II (Formulae) |
| a. MCV | 1. SP (RSQ - AQ) |
| b. MPV | 2. SP (SQ - AQ) |
| c. MUV | 3. AQ consumed (SP - AP) |
| d. MMV | 4. SC - AC |
Question 1416hard
Assertion (A): Only the relevant costs should be taken into consideration for decision-making.
Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.
Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.
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Question 1417hard
Match the following.
| List-I | List-II |
| a. Earning ability of firm | 1. Basis of accounting |
| b. Conservatism | 2. P/V ratio |
| c. Cash profit | 3. Cash flow statement |
| d. Cash and accrual | 4. Prudence |
Question 1418hard
State which of the following are the characteristics of service costing.
1. High levels of indirect costs as a proportion of total costs
2. Use of composite cost units
3. Use of equivalent units
1. High levels of indirect costs as a proportion of total costs
2. Use of composite cost units
3. Use of equivalent units
Question 1419hard
"A ltd is a manufacturing company that has no production resource limitations for the foreseeable future. The Managing Director has asked the company mangers to coordinate the preparation of their budgets for the next financial year. In what order should the following budgets be prepared?
(1) Sales budget
(2) Cash budget
(3) Production budget
(4) Purchase budget
(5) Finished goods inventory budget"
(1) Sales budget
(2) Cash budget
(3) Production budget
(4) Purchase budget
(5) Finished goods inventory budget"