Costing MCQs

Question 1

Cost influences by responsibility center manager who is considered as

Accepted Answer

controllable cost

Answer

manager cost

Answer

influential cost

Answer

center cost

Question 2

If indirect manufacturing labour is $20000, power cost is $5000, maintenance and supplies are of $10000 then manufacturing budget will be

Accepted Answer

$35,000

Answer

$5,000

Answer

$15,000

Answer

$45,000

Question 3

Last step in developing operating budget is

Accepted Answer

implementing decision

Answer

implementing income

Answer

efficient implementation

Answer

effective implementation

Question 4

In master budgeting, cost drivers for manufacturing overhead costs are

Accepted Answer

both a and b

Answer

direct manufacturing labour-hours

Answer

setup labour-hours

Answer

budgeted labour-hours

Question 5

Document, which contains information about used material sequence, detail and quantity of raw material is classified as

Accepted Answer

bill of materials

Answer

bill of sequence

Answer

bill of detail

Answer

bill of raw materials

Question 6

Type of budget, which is always available for specified period of future is called

Accepted Answer

continuous budget

Answer

period budget

Answer

batch budget

Answer

discontinued budget

Question 7

Plan of action; how an organization meets its opportunities and capabilities is classified as

Accepted Answer

strategy

Answer

action plan

Answer

step wise plan

Answer

complex plan

Question 8

Focus on budget cost of all activities necessary to sell and produce market offerings is known as

Accepted Answer

activity based budgeting

Answer

cost based budgeting

Answer

production based budgeting

Answer

raw material budgeting

Question 9

Budgeted income statement and supporting budget schedules are categorized under

Accepted Answer

operating budget

Answer

focused statement

Answer

slack statement

Answer

budgeted income statement