Costing MCQs

Question 1

Recreation expenses in factory are apportioned on the basis of ________.

Accepted Answer

number of employees

Answer

material cost

Answer

wages

Answer

prime cost

Question 2

Charging output with overhead at reasonable rate is called ________.

Accepted Answer

apportionment

Answer

allocation

Answer

appropriation

Answer

absorption

Question 3

Comprehensive machine hour rate includes ________.

Accepted Answer

machine operators wages

Answer

managing directors salary

Answer

income tax

Answer

office rent

Question 4

In labour oriented manufacturing industry which method of overhead absorption is suitable?

Accepted Answer

Labour hour method

Answer

Direct material cost method

Answer

Prime cost method

Answer

Machine hour method

Question 5

The type of loss that should not affect cost of inventories is ________.

Accepted Answer

normal loss

Answer

abnormal loss

Answer

seasonal loss

Answer

standard loss

Question 6

The expenses relating to a particular process is ________.

Accepted Answer

debited to that process a/c

Answer

credited to that process a/c

Answer

debited to costing profit and loss a/c

Answer

debited to profit and loss a/c

Question 7

Normal loss in the manufacturing process leads to _______.

Accepted Answer

increase in unit price of other good units

Answer

reduction in unit price of other good units

Answer

reduction in costing profit

Answer

increase in costing profit

Question 8

Abnormal loss and its value are _______.

Accepted Answer

credited to process a/c

Answer

debited to process a/c

Answer