Costing MCQs

Question 1

If conversion cost is $25000 and direct manufacturing labour cost is $17000, then manufacturing overhead cost would be

Accepted Answer

$8,000

Answer

$14,700

Answer

$68,000

Answer

$42,000

Question 2

For companies in service sector, cost which is not considerable is

Accepted Answer

Inventoriable costs

Answer

finished costs

Answer

factory overhead costs

Answer

manufacturing overhead costs

Question 3

An overtime is considered in cost accounting as

Accepted Answer

both a and b

Answer

indirect costs

Answer

overhead costs

Answer

premium costs

Question 4

In income statement of merchandising costs, period cost includes all costs which are not related to

Accepted Answer

cost of purchased goods

Answer

cost of resale goods

Answer

cost of manufacturing goods

Answer

timed resale of goods

Question 5

Wages paid to workers of factory are termed as

Accepted Answer

overtime premium

Answer

workers premium

Answer

factory premium

Answer

wage premium

Question 6

Cost, which is related to specific cost object and economically traceable, will be classified as

Accepted Answer

direct cost

Answer

indirect cost

Answer

line cost

Answer

staff cost

Question 7

Material or anything for which cost is to be measured is known as

Accepted Answer

cost object

Answer

measurement object

Answer

accounting object

Answer

budget object

Question 8

Cost which is changed in proportion to level total volume is

Accepted Answer

variable cost

Answer

fixed cost

Answer

total cost

Answer

infeasible cost

Question 9

Costs are classified as fixed or variable on basis of

Accepted Answer

both a and b

Answer

specific activity

Answer

given time period

Answer

common activity