Costing MCQs

Question 1

Profit to be transferred to profit and loss a/c, if the contract is complete to the extent of only 20% is ________.

Accepted Answer

nil

Answer

20%

Answer

25%

Answer

75%

Question 2

Operating cost is usually ascertained through ________.

Accepted Answer

a statement

Answer

a ledger account

Answer

profit and loss a/c

Answer

balance sheet

Question 3

The physical distance covered by a vehicle is measured in terms of ________.

Accepted Answer

running kilometers or miles

Answer

ton kilometers

Answer

passenger kilometers

Answer

vehicle days

Question 4

Insurance and garage rent is ________.

Accepted Answer

fixed charges

Answer

maintenance charges

Answer

operating charges

Answer

running charges

Question 5

Which of the following item of expenses will not appear in cost accounting.

Accepted Answer

Loss on sale of fixed assets

Answer

Direct material cost

Answer

Factory overheads

Answer

Selling Expenses

Question 6

The term cost refers to ________.

Accepted Answer

the value of sacrifice made to acquire goods or services

Answer

the present value of future benefits

Answer

an asset that has given benefit but now expired

Answer

the price of products sold or services rendered

Question 7

Cost accounting differs from financial accounting in respect of ________.

Accepted Answer

ascertainment of cost

Answer

reporting of cost

Answer

control of cost

Answer

recording of cost

Question 8

Which method of costing is best suited for interior decoration.

Accepted Answer

Job costing

Answer

Contract accounting

Answer

Operating costing

Answer

Process costing

Question 9

When cash is received from contractee which a/c should be credited.

Accepted Answer

Contractee a/c

Answer

Cash a/c

Answer

Contract a/c

Answer

Contractor a/c