Costing MCQs

Question 1

Direct labour means ________.

Accepted Answer

labour which can be conveniently associated with aparticular cost unit

Answer

labour which completes the work manually

Answer

permanent labour in the production department

Answer

labour which is recruited directly and not through contractors

Question 2

The type of process loss that should not affect the cost of inventory value is _________.

Accepted Answer

abnormal loss

Answer

normal loss

Answer

seasonal loss

Answer

standard loss

Question 3

If the actual loss is more than the estimated normal loss, then it is _________.

Accepted Answer

abnormal loss

Answer

normal loss

Answer

seasonal loss

Answer

abnormal gain

Question 4

Direct material Rs 25,000 and wages Rs 15,000 and direct expenses Rs 5,000 What would be the factory cost if factory overhead rate is 20%.

Accepted Answer

Rs. 54,000

Answer

Rs. 45,000

Answer

Rs. 50,000

Answer

Rs. 60,000

Question 5

Overvaluation of opening stock in financial accounting results ________.

Accepted Answer

decreases financial accounts profit

Answer

decreases costing profit

Answer

increases costing profit

Answer

increases financial accounts profit

Question 6

Under absorption of overhead expenses in cost accounting results in _________.

Accepted Answer

increase in costing profit

Answer

decrease in costing profit

Answer

decrease in financial accounts profit

Answer

increase in financial accounts profit

Question 7

________ refers to the verification of cost accounts and check on the adherence to the cost accounting plan.

Accepted Answer

Cost Audit

Answer

Costcentre

Answer

Costunit

Answer

Costprofit

Question 8

Direct material is a ________.

Accepted Answer

manufacturing cost

Answer

administrative cost

Answer

selling cost

Answer

distribution cost

Question 9

________ is a preventive function.

Accepted Answer

Costcontrol

Answer

Costreduction

Answer

Costunit

Answer

Costcentre